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
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?
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
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?
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