Samsung outsources the majority of its production processes.

Question 1

Samsung outsources the majority of its production processes.

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True

False

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The correct answer is ‘False’.

Question 2

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Which of the following correctly matches a firm’s predisposition with its culture?

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1. Polycentric-home-country
2. Geocentric-global

According to Table 5-1, an MNC with a geocentric orientation has a global culture.

1. Regiocentric-host-country
2. Ethnocentric-regional

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The correct answer is: Geocentric-global

Question 3

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In some cases, both the product and the marketing message are similar worldwide; this is particularly true for high-end products.

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True

False

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In some cases, both the product and the marketing message are similar worldwide. This is particularly true for high-end products, where the lifestyles and expectations of the market niche are similar regardless of the country.

The correct answer is ‘True’.

Question 4

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The word culture comes from the Latin culture, which is related to cult or worship.

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True

False

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The word culture comes from the Latin culture, which is related to cult or worship.

The correct answer is ‘True’.

Question 5

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Which of the following correctly matches a firm’s predisposition with its strategy?

Select one:

1. Ethnocentric-global integration and national responsiveness
2. Polycentric-national responsiveness

According to Table 5-1, an MNC with a polycentric orientation has a strategy of national responsiveness.

1. Regiocentric-global integration
2. Geocentric-regional integration and national responsiveness

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The correct answer is: Polycentric-national responsiveness

Question 6

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George England found that personal value systems are relatively stable and do not change rapidly.

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True

False

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George England found that personal value systems are relatively stable and do not change rapidly.

The correct answer is ‘True’.

Question 7

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A(n) _____ predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis.

Select one:

1. Geocentric
2. Globalcentric
3. Ethnocentric
4. Regiocentric

A regiocentric predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis.

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The correct answer is: Regiocentric

Question 8

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Because of the Japanese pride in excellence, a problem with the accelerator on some Toyota vehicles was quickly reported to superiors who worked with the designers to fix the problem.

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True

False

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The correct answer is ‘False’.

Question 9

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An MNC with an ethnocentric predisposition:

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1. Redistributes profits globally
2. Redistributes profits within the region
3. Takes back its profits to its home country

According to Table 5-1, an MNC with an ethnocentric orientation takes back its profits to its home country.

1. Retains profits in the host country

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The correct answer is: Takes back its profits to its home country

Question 10

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The Japanese earthquake and tsunami in 2011 were the only causes of the meltdown at the Fukushima nuclear power plant, and the company worked quickly to initiate emergency measures.

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True

False

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The correct answer is ‘False’.

Question 11

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Increasingly, individual rewards are an accepted norm in countries across the globe.

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True

False

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In some countries, personnel who do outstanding work are given individual rewards in the form of bonuses and commissions. In others, cultural norms require group rewards, and individual rewards are frowned on.

The correct answer is ‘False’.

Question 12

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The characteristic transgenerational means that culture has structure and is integrated; a change in one part will bring changes in another.

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True

False

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The characteristic transgenerational means that culture is cumulative, passed down from one generation to the next.

The correct answer is ‘False’.

Question 13

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Advertising in the United States should be indirect and subtle, emphasizing group references, shared responsibility and interpersonal trust.

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True

False

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Advertising in the United States should target individual achievement, be expressive and direct, and appeal to U.S. values of success through personal hard work.

The correct answer is ‘False’.

Question 14

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A company with a geocentric predisposition tries to integrate a global systems approach to decision making.

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True

False

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A company with a geocentric predisposition tries to integrate a global systems approach to decision making.

The correct answer is ‘True’.

Question 15

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A company with a(n) _____ predisposition allows the values and interests of the parent company to guide the strategic decisions.

Select one:

1. Polycentric
2. Geocentric
3. Ethnocentric

A company with an ethnocentric predisposition allows the values and interests of the parent company to guide strategic decisions.

1. Regiocentric

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The correct answer is: Ethnocentric

Question 16

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Four distinct predispositions, which help determine the specific steps an MNC will follow, are:

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1. Ethnocentric, polycentric, regiocentric and geocentric

Most MNCs have a cultural strategic predisposition toward doing things in a particular way. Four distinct predispositions have been identified: ethnocentric, polycentric, regiocentric, and geocentric.

1. Intercentric, polycentric, regiocentric and network centric
2. Globalcentric, networkcentric, geocentric and polycentric
3. Geocentric, intercentric, extracentric, ethnocentric

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The correct answer is: Ethnocentric, polycentric, regiocentric and geocentric

Question 17

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Culturally, a German can be expected to have a _____ handshake.

Select one:

1. Gentle
2. Light and quick
3. Brusque and firm

People in Germany tend to have a brusque and firm handshake.

1. Long and involved

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The correct answer is: Brusque and firm

Question 18

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Renault made a number of strategic decisions that dramatically changed the way it did business, such as building a factory in Brazil to produce its successful Megane sedan.

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True

False

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Several years ago Renault made a number of strategic decisions that dramatically changed the way it did business. Among other things, it bought controlling stakes in Nissan Motor of Japan, Samsung Motors of South Korea, and Dacia, the Romanian automaker. The company also built a $1 billion factory in Brazil to produce its successful Megane sedan and acquired an idle factory near Moscow to manufacture Renaults for the Eastern European market.

The correct answer is ‘True’.

Question 19

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The following definitions accurately match their dimension of culture except:

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1. People as members of a group, organization, or society share culture
2. Culture is not structured and is not integrated

Culture has structure and is integrated; a change in one part will bring changes in another.

1. Culture is based on the human capacity to change or adapt
2. Culture is cumulative, passed down from one generation to another

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The correct answer is: Culture is not structured and is not integrated

Question 20

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Although culture is an important variable in understanding international management, it falls well short of affecting how people think and behave.

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True

False

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For the purposes of the study of international management, culture is acquired knowledge that people use to interpret experience and generate social behavior. This knowledge forms values, creates attitudes, and influences behavior.

The correct answer is ‘False’.

Question 21

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The companies constituting 50 percent of the global market share in the smartphone industry are:

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1. Apple and HTC
2. Sony and Apple
3. Samsung and Huawei
4. Apple and Samsung

Constituting 50 percent of the global market share, Samsung and Apple have achieved unmatched success in the smartphone industry.

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The correct answer is: Apple and Samsung

Question 22

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If a culture encourages stability, it means that it:

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1. Is averse to formal procedures
2. Encourages innovation
3. Is resistant to change

The culture of some countries encourages stability and resistance to change.

1. Focuses on short-term horizons

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The correct answer is: Is resistant to change

Question 23

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While stereotypes and overgeneralizations should be avoided, there are always individual differences and even subcultures within every country that must be addressed.

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True

False

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Stereotypes and overgeneralizations should be avoided; there are always individual differences and even subcultures within every country.

The correct answer is ‘True’.

Question 24

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A major dimension in the study of culture is values.

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True

False

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A major dimension in the study of culture is values.

The correct answer is ‘True’.

Question 25

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Firms with a polycentric predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.

Select one:

True

False