Statistics reveal that foreign direct investment (FDI) has grown ten times faster than trade and twice as fast as the world gross domestic product.

Question 1

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True

False

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Statistics reveal that FDI has grown three times faster than trade and four times faster than world gross domestic product (GDP).

The correct answer is ‘False’.

Question 2

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Communication is the process of:

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Transferring meanings from sender to receiver

Communication is the process of transferring meanings from sender to receiver.

Choosing a course of action among alternatives
Giving teams the resources they need to develop ideas and effectively implement them
Using reports and other written forms to control business operations

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The correct answer is: Transferring meanings from sender to receiver

Question 3

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The primary purpose of downward communication flow is to provide feedback, ask questions or obtain assistance from higher-level management.

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True

False

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Downward communication is the transmission of information from manager to subordinate. The primary purpose of the manager-initiated communication flow is to convey orders and information.

The correct answer is ‘False’.

Question 4

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Steps can be taken to improve communication effectiveness in the international arena; these include all but:

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Improving feedback systems
Incorporating U.S. values regarding time into international operations

A number of steps can be taken to improve communication effectiveness in the international arena. These include improving feedback systems, providing language and cultural training, and increasing flexibility and cooperation.

Providing language and cultural training
Increasing flexibility and cooperation

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The correct answer is: Incorporating U.S. values regarding time into international operations

Question 5

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Researchers have found that the contextual style is often associated with:

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Low-power distance, collective, high-context cultures
Low-power distance, individualistic, high-context cultures
High-power distance, individualistic, low-context cultures
High-power distance, collective, high-context cultures

Researchers have found that the contextual style is often associated with high power-distance, collective, high-context cultures.

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The correct answer is: High-power distance, collective, high-context cultures

Question 6

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An economic imperative approach to strategic planning is used when a product is regarded as a generic good and therefore does not have to be sold based on name brand.

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True

False

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The strategy is also used when the product is regarded as a generic good and therefore does not have to be sold based on name brand or support service.

The correct answer is ‘True’.

Question 7

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_____ is the information that surrounds a communication and helps convey the message.

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Contingency
Stipulation
Context

Context is information that surrounds a communication and helps convey the message.

Circumstance

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The correct answer is: Context

Question 8

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In high-context societies, the succinct style of communication is very common.

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True

False

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In high-context societies, the elaborate style is often very common. There is a great deal of talking, description includes much detail, and people often repeat themselves.

The correct answer is ‘False’.

Question 9

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In terms of communication styles, which of the following countries has a low-context society?

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The United States

This approach is in sharp contrast to low-context societies such as the United States and Canada, where the message is explicit and the speaker says precisely what he or she means.

Japan
Italy
Arab countries

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The correct answer is: The United States

Question 10

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When the need for national responsiveness is low and the need for global integration is high, a global strategy is appropriate.

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True

False

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In quadrant 1, the need for integration is high and awareness of differentiation is low. In terms of economies of scale, this situation leads to global strategies based on price competition.

The correct answer is ‘True’.

Question 11

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Ford Motor’s strategic plan in Thailand is based on:

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Offering the right price and product
Offering the right combination of price and financing to a carefully identified market segment

One is Ford Motor, which has reentered the market in Thailand and has built a strong sales force to garner market share. The firm’s strategic plan here is based on offering the right combination of price and financing to a carefully identified market segment. In particular, Ford is working to keep down the monthly payments so that customers can afford a new vehicle.

Offering the right combination of price and financing to all market segments
Offering the right financing only

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The correct answer is: Offering the right combination of price and financing to a carefully identified market segment

Question 12

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All parties to an offshoring arrangement should understand that mutual respect for cultures, both national and corporate, is negotiable.

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True

False

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The correct answer is ‘False’.

Question 13

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Communication is the process of transferring meanings from sender to receiver.

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True

False

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Communication is the process of transferring meanings from sender to receiver.

The correct answer is ‘True’.

Question 14

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Managers should concentrate on “building common ground—essentially, shared knowledge—across locations, so that employees working offshore can anticipate the actions and decisions of their onshore counterparts without the need for extensive discussion.”

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True

False

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Srikanth and Puranam suggested that managers concentrate on “building common ground—essentially, shared knowledge—across locations, so that employees working offshore can anticipate the actions and decisions of their onshore counterparts without the need for extensive discussion.”

The correct answer is ‘True’.

Question 15

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Messages are implicit and often highly coded in:

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Low-context societies
Moderate-context societies
High-context societies

In high-context societies, such as Japan and many Arab countries, messages are often highly coded and implicit.

Variable-context societies

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The correct answer is: High-context societies

Question 16

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The products sold by MNCs pursuing this approach often have a large portion of their value added in the downstream activities of the value chain.

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Political imperative

The products sold by MNCs often have a large portion of their value added in the downstream activities of the value chain. Industries such as insurance and consumer packaged goods are examples—the success of the product or service generally depends heavily on marketing, sales, and service.

Cost imperative
Quality imperative
Economic imperative

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The correct answer is: Political imperative

Question 17

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In low-context societies, messages are often highly coded and implicit.

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True

False

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This approach is in sharp contrast to low-context societies such as the United States and Canada, where the message is explicit and the speaker says precisely what he or she means.

The correct answer is ‘False’.

Question 18

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To a growing extent, the customers of MNCs have heterogeneous tastes and this has helped to spread international consumerism.

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True

False

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To a growing extent, the customers of MNCs have homogenized tastes, and this has helped to spread international consumerism. For example, throughout North America, the EU, and Japan, there has been a growing acceptance of standardized, yet increasingly personally, customized goods such as automobiles and computers.

The correct answer is ‘False’.

Question 19

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Typically, MNCs utilizing this approach to strategic planning use a country-centered or multi-domestic strategy.

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Quality imperative
Administrative coordination
Political imperative

Typically, MNCs utilizing the political imperative approach to strategic planning use a country-centered or multi-domestic strategy.

Economic imperative

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The correct answer is: Political imperative

Question 20

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Work hours, vacation accrual, general business practices, and human resource issues vary widely from country to country.

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True

False

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Be careful not to use generalized statements about benefits, compensation, pay cycles, holidays, or policies in your worldwide communications. Work hours, vacation accrual, general business practices, and human resource issues vary widely from country to country.

The correct answer is ‘True’.

Question 21

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The process of determining an organization’s basic mission and long-term objectives and then implementing a plan of action for attaining these goals is:

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Strategic management

Strategic management is the process of determining an organization’s basic mission and long-term objectives and then implementing a plan of action for pursuing this mission and attaining these objectives.

Tactical management
Contingency management
Functional management

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The correct answer is: Strategic management

Question 22

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Companies that pursue this strategy typically sell products for which a large portion of value is added in the upstream activities of the industry’s value chain.

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Quality imperative
Political imperative
Economic imperative

MNCs that focus on the economic imperative employ a worldwide strategy based on cost leadership, differentiation, and segmentation. Many of these companies typically sell products for which a large portion of value is added in the upstream activities of the industry’s value chain.

Administrative coordination

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The correct answer is: Economic imperative

Question 23

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A worldwide strategy based on cost leadership, differentiation, and segmentation is referred to as the:

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Economic imperative

MNCs that focus on the economic imperative employ a worldwide strategy based on cost leadership, differentiation, and segmentation.

Political imperative
Quality imperative
Administrative coordination strategy

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The correct answer is: Economic imperative

Question 24

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These individuals are the key to stimulating profit growth within a company.

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Supervisors
Middle managers

Middle managers are the key to stimulating profit growth within a company, so expanding those efforts on an international level is a necessary tool to learn for today’s new managers.