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Q:
Employee compensation payments added to base salaries because of higher expenses encountered when living abroad are considered:
A. bonuses.
B. allowances.
C. perks.
D. tax exempt.
E. two of the above.
Q:
Which of the following statements is true of Islam?
A. Islam has roots in Confucianism.
B. Islamic ethics support worldly gain and temporal power.
C. Islam forbids the consumption of pork and alcohol.
D. Islam makes a clear distinction between church and state.
E. Unlike Christianity and Judaism, Islam is not a monotheistic religion.
Q:
For expatriate employees, the salary portion of the compensation package is:
A. usually higher than that for employees at the same level in the home company.
B. usually lower than that for employees at the same level in the home company.
C. usually within the range of that for the employees at the same level in the home company.
D. usually on a separate, expatriate schedule.
E. none of the above.
Q:
The rise of Islamic fundamentalism is, in part, a response to the:
A. denial of equal rights for women and other minorities.
B. movement in traditional Islamic societies toward modernization.
C. narrowing gap between the rich and the poor.
D. increasing standard of living in Islamic societies.
E. widening gap between the highly developed and the less developed nations.
Q:
Islam has roots in both Judaism and _____.
A. Buddhism
B. Hinduism
C. Christianity
D. Confucianism
E. Shinto
Q:
Regarding repatriation:
A. expatriates often struggle with the higher autonomy of their work context when they return home.
B. planning for an expat's return should start while the employee is abroad.
C. 49 percent of expatriates report that they do not have any guaranteed position in their IC after the end of their international assignment.
D. two of the above.
E. none of the above.
Q:
Which of the following is a religion that prohibits the payment or receipt of interest, as it is considered to be usury?
A. Hinduism
B. Buddhism
C. Christianity
D. Confucianism
E. Islam
Q:
Knowledge of foreign languages:
A. requires too much work to be worth the effort.
B. can be of great assistance in making export sales.
C. is useless if you know English.
D. is of academic but not business value.
E. none of the above.
Q:
According to Max Weber, Protestantism encouraged capitalisms development by:
A. believing that salvation occurred in the next world, rather than this world.
B. encouraging the consumption of accumulated wealth by indulging in worldly pleasures.
C. adhering to the hierarchical domination of religious and social life that characterized the Catholic Church.
D. limiting an individual's religious freedom.
E. emphasizing on the importance of hard work and wealth creation for the glory of God and frugality.
Q:
Which of the following is(are) true about assistance provided to the spouses of expatriates?
A. Over half of companies provide education or training assistance to spouses.
B. Nearly 70 percent of companies provide language training to spouses.
C. About one-quarter of companies sponsor work permits.
D. Two of the above.
E. All of A, B, and C.
Q:
In 1904, _____ theorized that there was a relationship between Protestantism and the emergence of modern capitalism.
A. Karl Marx
B. Alfred Schmidt
C. Max Weber
D. Abraham Maslow
E. Adam Smith
Q:
Which of the following is(are) true about the spouses of expatriates?
A. Many are unable to legally work in the host nation.
B. Nearly one-quarter were employed during the course of the expat assignment.
C. Many experience stages of grief, similar to the loss of a loved one, due to career effects of the assignment.
D. Two of the above.
E. All of A, B, and C.
Q:
Which of the following is the most dominant religion in the world in terms of numbers of adherents?
A. Judaism
B. Christianity
C. Islam
D. Buddhism
E. Confucianism
Q:
According to the text, approximately ______ percent of the companies surveyed required cross-cultural training for their expats or their families.
A. 21 percent
B. 27 percent
C. nearly half
D. 77 percent
E. 90 percent
Q:
_____ is an ethical system that has influenced behavior and shaped culture in parts of Asia, however it cannot be considered as a religion.
A. Confucianism
B. Hinduism
C. Islam
D. Christianity
E. Buddhism
Q:
According to the text, approximately ______ of expatriate failures are family-related.
A. 25 percent
B. 40 percent
C. half
D. nearly 75 percent
E. 90 percent
Q:
Discuss Jeffrey Sachs's conception of geography, education, and economic development.
Q:
Which of the following dimensions has (have) been identified as being associated with cross-cultural adjustment?
A. Work context
B. Gender
C. General environment
D. all of the above
E. two of A, B, and C
Q:
The government of Nerumbia wants to open the country's economy to international business, and increase its overall attractiveness as a potential market or investment site. Which of the following will facilitate this decision of the Nerumbian government?
A. Shifting toward command economy or an economy where property rights are not enforced strictly
B. Investing in infrastructure and in the required supporting businesses
C. Frequently changing the government and the government policies
D. Maintaining a high inflation rate
E. Adopting a legal system which does not provide any protection for intellectual property rights
Q:
According to the text, approximately ______ of expatriates leave their firms during the course of their overseas assignment.
A. 10 percent
B. 25 percent
C. 31 percent
D. nearly 40 percent
E. none of the above
Q:
Which of the following is most likely to be true about the overall attractiveness of a country as a potential market or investment site for an international business?
A. The potential long-run benefits of doing business in a foreign country are independent of the country's future economic growth rates.
B. The costs and risks associated with doing business in a foreign country are highest in economically advanced democratic nations.
C. Economic growth tends to be higher in a centrally planned command economy system than in a free market system.
D. The risks associated with doing business are low in developing nations where the governments have huge debts.
E. The costs and risks associated with doing business in a foreign country tend to be greater in politically unstable nations.
Q:
According to the text, the failure rate for expatriate assignments, including failing to achieve performance targets for an international assignment or prematurely returning from the assignment, ranges from _______ percent.
A. 6 to 10
B. 15 to 25
C. 25 to 45
D. 30 to 55
E. 41 to 65
Q:
Generally, the costs and risks associated with doing business in a foreign country are typically lower in:
A. less developed countries.
B. economically advanced countries.
C. totalitarian states.
D. countries with high inflation and falling living standards.
E. countries that lack intellectual property rights.
Q:
According to the text, the proportion of expatriates who are women has increased to _____ percent.
A. 15
B. 21
C. 29
D. 35
E. over 50
Q:
The risks of doing business are most likely to be the highest in a country that:
A. has low inflation rates.
B. supports high living standards.
C. has only one ethnic nationality.
D. protects intellectual property.
E. faces frequent changes in government and government policy.
Q:
According to the text, about ____ percent of medium and large-sized companies have employees working abroad.
A. 23
B. 47
C. 55
D. 76
E. 80
Q:
If a company from a highly developed nation hesitates to enter into a joint venture with a company from a developing nation due to inadequate protection of intellectual property rights, it is trying to avoid a(n) ____ risk.
A. political
B. legal
C. ethical
D. economic
E. ethnographic
Q:
Before accepting a foreign posting and becoming an expatriate, you should:
A. arrange with someone fairly high in the home-country company to be your mentor and look out for your interests.
B. insist that the bosses tell you exactly what the company expects you to accomplish.
C. try to assess how your family will adopt to the major changes involved.
D. all the above.
E. two of A, B, and C.
Q:
A(n) _____ risk can be defined as the likelihood that a trading partner will opportunistically break a contract or expropriate property rights.
A. political
B. legal
C. economic
D. sociological
E. cultural
Q:
Generalizations about TCNs are difficult because:
A. the IC usually does not know enough about their backgrounds.
B. the geocentric staffing policy prohibits these generalizations.
C. two of A, B, and D.
D. people achieve the TCN status in different ways.
E. all of A, B, and D.
Q:
The government of Ugania had been extending huge amounts of loans to the business enterprises in the country. However, the borrowers failed to generate the profits necessary to repay their debts. As a result, national banks in Ugania had a lot of nonperforming assets on their books, and the Uganian currency was devalued. In this context, the business enterprises in Ugania are most likely to face a(n) _____ risk.
A. ethical
B. economic
C. technological
D. legal
E. sociological
Q:
The use of third-country nationals as IC executives in LDCs is a growing practice because:
A. they tend to prefer working in LDCs.
B. there is frequently a shortage of skilled host-country nationals.
C. all of A, B, and D.
D. they often already have host-country work permits and knowledge of the host country's language and culture.
E. two of A, B, and D.
Q:
Which of the following statements is most likely to be true about the risks of doing business in a country?
A. Political risk is low in countries that contain more than one ethnic nationality.
B. Economic risks are independent of political risk.
C. One visible indicator of economic risk is the level of business and government debt in the country.
D. One visible indicator of legal risk tends to be a countrys inflation rate.
E. Political risk tends to be low in those countries that have high inflation and falling living standards.
Q:
An advantage of hiring personnel who are citizens of neither the home country nor the host country may be that they:
A. may accept lower wages and benefits.
B. may come from a culture similar to that of the host country.
C. all of A, B, and D.
D. have international experience.
E. two of A, B, and D.
Q:
When host-county nationals are employed:
A. training costs are a minimum.
B. they are familiar with local customs, culture, and language.
C. they are already familiar with the home country.
D. any conflict of interest is removed.
E. two of the above.
Q:
Lamboria Republic is facing a high rate of inflation, and the government debt in the country is also high. As a result, the country's business environment is beginning to deteriorate, and the profits of the business enterprises are hurt. According to this information, Lamboria Republic is facing a(n) _____ risk.
A. legal
B. ethical
C. demographic
D. ethnographic
E. economic
Q:
Which of the following factors in a country is most likely to cause a political risk for an international business?
A. The presence of more than one ethnic nationality
B. Infrequent changes in government and government policy
C. Low inflation rate
D. Low level of government debt
E. High living standards
Q:
When an IC hires and trains local, host-country people, the IC often:
A. pays them too much and creates inflation.
B. overtrains them to IC culture-based standards.
C. may lose them to local firms or other ICs once they are trained.
D. encourages their transfer, causing brain drain.
E. two of the above.
Q:
Parent-company nationals might be concerned with:
A. the rate at which industrial skills are learned by host-country nationals.
B. how quickly they can learn the local language in their host country.
C. the exchange rate movement of their host country's currency.
D. all of the above.
E. two of A, B, and C.
Q:
When social unrest and disorder in a country causes drastic changes in its business environment that adversely affect the profit and other goals of a business enterprise, the business enterprise is said to be facing a(n) _____ risk.
A. political
B. demographic
C. ethical
D. technological
E. physiological
Q:
Training and development of potential candidates for expatriate assignments:
A. are unnecessary with host-country nationals.
B. are unnecessary with home-country nationals.
C. depend on whether the candidate is a home-, host-, or third-country national.
D. wastes company resources because management is an art form, not a skill.
E. none of the above.
Q:
A company has business interests in a country where the President-elect wants the country to adopt socialism and protectionism. Consequently, the company will be concerned about the _____ risks of continuing to do business in that country.
A. technological
B. psychographic
C. political
D. operational
E. demographic
Q:
Home-country nationals may be used in host-country management because:
A. all of B, C, and D.
B. host-country nationals are unavailable.
C. home-country nationals are being groomed for IC headquarters.
D. IC headquarters wants one of its nationals in the host country.
E. two of B, C, and D.
Q:
In the context of cost, which of the following can be considered as the most attractive market or investment site?
A. A country that has adopted a closed totalitarian state
B. A country that has a well-developed body of business contract law
C. A country with a command-based economic system
D. A country with stringent product safety laws and huge liability insurance rates
E. A country in which does not provide any protection for property rights
Q:
Star Volans Inc. is planning on expanding its business globally. In terms of the costs involved in conducting business in a country, it will be most economical for the company if it chooses a country:
A. with a closed totalitarian political system.
B. where the company will have to provide its own infrastructure and supporting business.
C. where laws regarding product safety, safety in the workplace, and environmental pollution are extremely stringent.
D. where politicians are held accountable by the electorate.
E. with no local laws to protect intellectual property.
Q:
A geocentric staffing policy:
A. enables the practices used at headquarters to be transferred worldwide.
B. tends to be used with a global strategic orientation.
C. selects the best person for each job, without considering national origin.
D. two of the above.
E. all of A, B, and C.
Q:
The cost of doing business is most likely to be the lowest in:
A. closed totalitarian states.
B. primitive or undeveloped economies.
C. open democratic societies.
D. countries where local laws and regulations set strict standards with regard to product safety, safety in the workplace, and environmental pollution.
E. countries that lack well-established laws for regulating business practice.
Q:
A regiocentric staffing policy:
A. involves human resource policies that are created at the local level for the specific context in which the local operations operate.
B. may send TCNs to fill management posts, to avoid problems from using PCNs or HCNs.
C. selects the best person for each job, without considering national origin.
D. two of the above.
E. all of A, B, and C.
Q:
Which of the following statements is most likely to be true about the economic prospects of a country?
A. The economic system and property rights regime are reasonably good predictors of economic prospects of a country.
B. Countries with command economies tend to achieve greater economic growth rates than free market economies.
C. Countries which do not provide any protection for property rights tend to achieve greater economic growth rates than the countries in which property rights are protected.
D. The countries where property rights are not well respected and where corruption is rampant always have very low levels of economic growth.
E. The advantages of building brand loyalty and gaining experience in a countrys business practices is greater for a last-mover than for a first-mover.
Q:
A polycentric staffing policy:
A. involves human resource policies that are created at the local level for the specific context in which the local operations operate.
B. results in the company hiring local managers who are familiar with the home country of the IC and with its corporate culture, policies, and practices.
C. may confront the problem of having the best people pirated away by local firms or other IC subsidiaries.
D. two of the above.
E. all of A, B, and C.
Q:
Both China and India have achieved high growth rates despite relatively weak property rights regimes and high levels of corruption, because of:
A. the shift toward a communist ideology.
B. their high living standards.
C. their large population.
D. their high consumer purchasing power.
E. the shift toward a market-based economic system.
Q:
A polycentric staffing policy is appropriate when:
A. there are low levels of pressure for cost reduction and high levels for localization.
B. information technology is of increasing importance.
C. all of A, B, and D.
D. international companies are entering India, where there are more women in management.
E. two of A, B, and D.
Q:
When Galaxy Ventures, a real estate company, entered the low cost housing business, the market was already saturated with other players. Thus, the company was forced to exit the market due to lack of customer loyalty and substantial dividends. Which of the following is a term used to described the situation faced by the company?
A. First-mover disadvantages
B. Last-mover disadvantages
C. Last-in first-out disadvantages
D. Comparative disadvantages
E. Absolute disadvantages
Q:
Hiring and promoting employees on the basis of the specific local context in which the subsidiary operates refers to:
A. an ethnocentric orientation.
B. a polycentric orientation.
C. a regiocentric orientation.
D. a geocentric orientation.
E. none of the above.
Q:
Which of the following is most likely to be an advantage that first-movers tend to have relative to last-movers?
A. Lower advertising costs
B. Greater brand loyalty
C. Lower innovation costs
D. Lower infrastructure development costs
E. Lower switching costs
Q:
An advantage of using home-country citizens abroad is:
A. they have expertise in the host-country culture.
B. they expand their experience, enhancing their potential for promotion at home.
C. they have lower-cost salaries and benefits than HCNs or TCNs.
D. two of the above.
E. all of A, B, and C.
Q:
Handicaps experienced by an organization because of entering into a market after several other companies who have already established their brands in the market, are referred to as _____.
A. secondary disadvantages.
B. last-class disadvantages.
C. late-mover disadvantages.
D. last in first out disadvantages.
E. comparative disadvantage.
Q:
An ethnocentric staffing policy:
A. utilizes host-country nationals in key foreign management and technical positions.
B. assigns expatriates who have learned the language and culture of the country of their assignment.
C. is required in order to prepare home-country citizens for high-level managerial positions at headquarters.
D. two of the above.
E. none of A, B, and C.
Q:
Which of the following best exemplifies a first-mover advantage?
A. Venus Inc. has more than 50 percent market share in the telecom industry, because no other company had invested in this industry before Venus Inc.
B. Maya won a cash discount of 75 percent on the latest NewY phone as she was the winner of a competition conducted by NewY.
C. The level of satisfaction Simon experienced when dining at the Emerald's Inn was greatest the first time, and thereafter it reduced each time he dined there.
D. Innovative Creations Inc. was the first to exit the declining pager phone manufacturing industry and as a result, it avoided losing a lot of money.
E. Product critiques are extremely respected by major firms, as they are the first ones to review new products and services.
Q:
A global mindset:
A. is a "prerequisite for global industry dominance."
B. combines an openness to and awareness of diversity across cultures and markets with a propensity and an ability to synthesize across this diversity.
C. results from a combination of training and language skills.
D. all of the above.
E. two of A, B, and C.
Q:
Capricorn Creative Inc., a U.S. based advertising firm, was the first in the advertising industry to identify the growth potential of Brazil and to make huge investments in it's economy. As a result, the firm was able to build brand loyalty and gain experience in that countrys business practices. In the language of business strategy, Capricorn Creative has typically benefited from:
A. a first-mover advantage.
B. forward integration.
C. unrelated differentiation.
D. lateral diversification.
E. technology transfer.
Q:
Qualifications for a good manager of an overseas operation should include:
A. all of B, C, and D.
B. being bicultural and bilingual.
C. knowing business practices in the home and host countries.
D. having more and different skills than domestic managers.
E. two of B, C, and D.
Q:
In economic terms, the long-run monetary benefits of doing business in a country are most likely to be a function of the:
A. gender ratio of the country.
B. latitudinal and the longitudinal location of the country.
C. natural resources available in the country.
D. present wealth (purchasing power) of consumers of the country.
E. political history of the country.
Q:
The effectiveness of every organization depends to a great extent on how well its:
A. human resources are utilized.
B. production facilities are operated.
C. financial resources are planned.
D. all of the above.
E. two of A, B, and C.
Q:
_____ are primarily the advantages that accrue to early entrants into a market.
A. Early bird advantages
B. First-mover advantages
C. Prime-mover advantages
D. Competitive advantages
E. First person advantages
Q:
Perks are symbols of rank in the corporate hierarchy and are used to compensate executives while minimizing taxes.
Q:
Although China and India are very large markets when measured by number of consumers, their _____ makes them a relatively small market when measured in economic terms.
A. orientation toward democracy
B. small share in the world output
C. high living standards
D. limited purchasing power
E. commitment to a free market system
Q:
Some firms promote host-country employees to international status without transferring them abroad.
Q:
Being from another country qualifies expatriates for international status.
Q:
Countries with _____ are more likely to attain high and sustained economic growth rates and are thus a more attractive location for international business.
A. weak protection of property rights
B. democratic regimes
C. command-based economic policies
D. ideologies that differ from Western ideologies
E. totalitarian dictatorships
Q:
There is a trend toward treating third-country nationals the same as home-country expatriates in terms of their compensation plans.
Q:
The United Nation of Amberia, a Western European country, fought on the winning side of the Cold War. Which of the following was most likely being propagated by the country by participating in the Cold War?
A. Strong business regulations
B. Communist ideologies
C. Command economies
D. Totalitarian dictatorships
E. Free markets
Q:
Japanese attitudes toward Western women expats assigned to Japan suggest that these women would be ineffective in their assignments.
Q:
The _____ of the Cold War era has vanished.
A. multipolar world
B. democratic system
C. free market system
D. bipolar world
E. widespread belief in the Western ideology
Q:
Bonuses are payments made to compensate expatriates for the extra costs they must incur to live as well abroad as they did in the home country.
Q:
Which of the following statements is true about the global changes in political and economic systems?
A. The West lost the Cold War, and East European communist ideology is now widespread.
B. A lack of deregulation has been the cause for the global financial crisis of 20082009, and the recession that followed.
C. It is guaranteed that democracy will thrive in most of the worlds newer democratic states.
D. The multipolar world dominated by a number of civilizations of the Cold War era has vanished, and is now being replaced by a bipolar world.
E. Many of the undeveloped and impoverished national markets of eastern Europe, Latin America, Africa, and Asia are potentially enormous for international business.
Q:
Allowances are paid by firms in recognition of the fact that expatriates and their families undergo hardship and make sacrifices while living abroad.
Q:
Many commentators have blamed the problems that led to global financial crisis of 20082009, and the recession that followed on:
A. a lack of free markets.
B. a lack of regulation.
C. the political ideologies followed in the Asian countries.
D. a strong presence of command economies.
E. a lack of privatization and liberalization.
Q:
In the method favored by the majority of American ICs, the salary part of an expatriate employee's compensation package will generally be governed by the employee's level in the organization and will not be higher because of the foreign assignment.
Q:
Which of the following is most likely to be an implication of the global financial crisis of 20082009, and the recession that followed?
A. Increase in deregulation
B. Widespread acceptance of western political ideology
C. Retrenchment from free markets and democracy
D. Decrease in the popularity of command economies and totalitarian dictatorships
E. Abolition of the legal system that protects property rights