Question 1

In order to achieve cost economies, Peak Manufacturing bases its production plants in Mexico and gets its engineering services from skilled workers in Japan. In this case, Peak is using the _____ model of organizational structure.

Accepted Answer

A)  international
B)  multinational
C)  global
D)  transnational
E)  intranationalF) C) and E)
G) A) and D)

Question 2

Using host-country nationals at an overseas subsidiary is generally less expensive than using expatriates.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following factors would increase the pressure for local responsiveness?

Accepted Answer

A)  The existence of widely worn traditional clothing styles
B)  A food product that has international popularity
C)  A technical component used in electronic devices worldwide
D)  Pressure on a company to reduce costs significantly
E)  The existence of competitors engaged in global strategic coordinationF) A) and B)
G) All of the above

Question 4

When One-World Fashion tries to open its clothing stores in a new country, it learns that local rules require a certain percentage of its products to be manufactured locally. This example fits into which category of pressures for local responsiveness?

Accepted Answer

A)  Differences in distribution channels
B)  Differences in traditional practices
C)  Economic and political demands
D)  Differences in consumer tastes
E)  Global market integrationF) A) and B)
G) A) and C)

Question 5

An organizational model that consists of a company's overseas subsidiaries and is characterized by centralized decision making and tight control by the parent company over most aspects of worldwide operations is known as the

Accepted Answer

A)  international model.
B)  multinational model.
C)  global model.
D)  transnational model.
E)  intranational model.F) C) and E)
G) A) and E)

Question 6

Which of the following characteristics is most likely associated with an international executive?

Accepted Answer

A)  Ethnocentric
B)  Flexible
C)  Overconfident
D)  Prefers familiarity
E)  Avoids criticismF) C) and D)
G) D) and E)

Question 7

Dan is sent on a short-term work assignment from the United States to Great Britain, where traffic laws require driving on the left side of the road. While in Great Britain, Dan notices that he feels anxious every time he has to drive on a two-way street. What is Dan experiencing?

Accepted Answer

A)  Offshoring
B)  Failure rate
C)  Culture shock
D)  Ethnocentrism
E)  Panic attackF) B) and D)
G) B) and E)

Question 8

One of the advantages of exporting is that it provides scale economies.

Accepted Answer

A) True 
 B)False

Question 9

Write an essay on wholly owned subsidies. State their advantages and disadvantages.

Accepted Answer

Wholly owned subsidiaries are companies ...

Question 10

Which of the following is an effective way to prevent failed global assignments?

Accepted Answer

A)  Using validated screening criteria
B)  Keeping the assignment structure open
C)  Avoiding the assignment of mentors
D)  Delaying the creation of job objectives
E)  Reducing dependency by communicating rarelyF) C) and D)
G) A) and B)

Question 11

Which of the following is an advantage of the international model?

Accepted Answer

A)  It facilitates the transfer of skills from the parent company to the subsidiaries.
B)  It provides maximum latitude to research and development functions.
C)  It provides the opportunity to achieve a low-cost position via scale economies.
D)  It requires a minimum amount of effort and coordination by the parent company.
E)  It transfers ultimate control to the subsidiaries.F) A) and D)
G) A) and C)

Question 12

A disadvantage of the global model is that it

Accepted Answer

A)  is less responsive to consumer tastes and demands.
B)  has high manufacturing costs.
C)  requires spending more money on product customization.
D)  limits its subsidiaries to market and service functions.
E)  provides too much freedom to its subsidiaries.F) A) and B)
G) A) and C)

Question 13

A disadvantage of licensing is that the licensing company

Accepted Answer

A)  may lose control over its technology.
B)  takes on greater political risk.
C)  takes on greater development costs.
D)  realizes higher profit margins.
E)  bears most of the risks associated.F) A) and B)
G) B) and D)

Question 14

Which of the following is an advantage of a multinational model?

Accepted Answer

A)  Manufacturing costs are low.
B)  Launching coordinated global attacks against competitors is easy.
C)  Subsidiaries can customize products according to local preferences.
D)  It reduces the duplication of efforts.
E)  It increases profits because of economies of scale.F) C) and E)
G) A) and E)

Question 15

What is an advantage of exporting as a global expansion entry mode?

Accepted Answer

A)  It is consistent with a pure global strategy.
B)  Low cost sites are available.
C)  Transportation costs are generally lower.
D)  It is considered responsive to local needs.
E)  Trade barriers may be removed.F) A) and D)
G) B) and D)

Question 16

Which of the following is the preferred strategy when a company's competitive advantage is based on technology and the company wishes to enter the global marketplace?

Accepted Answer

A)  Exporting
B)  Licensing
C)  Franchising
D)  Creating a joint venture
E)  Creating a wholly owned subsidiaryF) B) and D)
G) B) and E)

Question 17

Ethical behavior and decision making are surprisingly harder in a purely domestic situation than in the international arena.

Accepted Answer

A) True 
 B)False

Question 18

_____ is an arrangement by which an organization in another country buys the rights to manufacture a company's product in its own country for a negotiated fee.

Accepted Answer

A)  Franchising
B)  International licensing
C)  Entering a joint venture
D)  Exporting
E)  PatentingF) B) and D)
G) All of the above

Question 19

In Scenario B, which of the following ways of entering into the global marketplace is Susie's company using?

Accepted Answer

A)  Licensing
B)  Importing
C)  Exporting
D)  Merging
E)  OutsourcingF) None of the above
G) A) and B)

Question 20

Which model should a company adopt when pressures for local responsiveness are high and pressures for global integration are low?

Accepted Answer

A)  global
B)  international
C)  multinational
D)  transnational
E)  intranationalF) B) and C)
G) B) and D)

Exam 6: International Management

What is an advantage of exporting as a global expansion entry mode?

Correct AnswerverifiedShow Answer

An organizational model that consists of a company's overseas subsidiaries and is characterized by centralized decision making and tight control by the parent company over most aspects of worldwide operations is known as the

Correct AnswerverifiedShow Answer

A disadvantage of licensing is that the licensing company

Correct AnswerverifiedShow Answer

Which of the following is the preferred strategy when a company's competitive advantage is based on technology and the company wishes to enter the global marketplace?

Correct AnswerverifiedShow Answer

_____ is an arrangement by which an organization in another country buys the rights to manufacture a company's product in its own country for a negotiated fee.

Correct AnswerverifiedShow Answer

In order to achieve cost economies, Peak Manufacturing bases its production plants in Mexico and gets its engineering services from skilled workers in Japan. In this case, Peak is using the _____ model of organizational structure.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of the international model?

Correct AnswerverifiedShow Answer

In Scenario B, which of the following ways of entering into the global marketplace is Susie's company using?

Correct AnswerverifiedShow Answer

Which of the following characteristics is most likely associated with an international executive?

Correct AnswerverifiedShow Answer

Dan is sent on a short-term work assignment from the United States to Great Britain, where traffic laws require driving on the left side of the road. While in Great Britain, Dan notices that he feels anxious every time he has to drive on a two-way street. What is Dan experiencing?

Correct AnswerverifiedShow Answer

One of the advantages of exporting is that it provides scale economies.

Correct AnswerverifiedShow Answer

Write an essay on wholly owned subsidies. State their advantages and disadvantages.

Correct AnswerAnswered by ExamLex AIWholly owned subsidiaries are companies ...View AnswerShow Answer

Using host-country nationals at an overseas subsidiary is generally less expensive than using expatriates.

Correct AnswerverifiedShow Answer

A disadvantage of the global model is that it

Correct AnswerverifiedShow Answer

Ethical behavior and decision making are surprisingly harder in a purely domestic situation than in the international arena.

Correct AnswerverifiedShow Answer

When One-World Fashion tries to open its clothing stores in a new country, it learns that local rules require a certain percentage of its products to be manufactured locally. This example fits into which category of pressures for local responsiveness?

Correct AnswerverifiedShow Answer

Which model should a company adopt when pressures for local responsiveness are high and pressures for global integration are low?

Correct AnswerverifiedShow Answer

Which of the following is an advantage of a multinational model?

Correct AnswerverifiedShow Answer

Which of the following factors would increase the pressure for local responsiveness?

Correct AnswerverifiedShow Answer

Which of the following is an effective way to prevent failed global assignments?

Correct AnswerverifiedShow Answer

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Answered by ExamLex AI
Wholly owned subsidiaries are companies ...
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