Ib 3101 Final

Front 1

A manager that is a citizen of one country who is working abroad in one of the firm's subsidiaries.

Back 1

expatriate manager

Front 2

Among the four dimensions that seem to predict success in a foreign posting, _____ refers to the ability to understand why people of other countries behave the way they do, that is, the ability to empathize.

Back 2

perceptual ability

Front 3

Mendenhall and Oddou identified four dimensions that seem to predict success in a foreign posting:

Back 3

1. self-orientation

2. others-orientation

3. perceptual ability

4. cultural toughness

Front 4

Which of the following is one of the steps taken by organized labor in response to the increased bargaining power of multinational corporations?

Back 4

Trying to establish international labor organizations

Front 5

Organized labor has responded to the increased bargaining power of multinational corporations by taking three actions:

However, these efforts have not been very successful.

Back 5

1) Trying to establish international labor organizations

2) Lobbying for national legislation to restrict multinationals

3) Trying to achieve international regulations on multinationals through such organizations as the United Nations.

Front 6

___________ refers to the relationship between the country of assignment and how well an expatriate adjusts to a particular posting.

Back 6

Cultural toughness

Front 7

A(n) _____ staffing policy is one in which all key management positions are filled by parent-country nationals.

Back 7

ethnocentric

Front 8

A(n) _____ staffing policy requires host-country nationals to be recruited to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters.

Back 8

polycentric

Front 9

A(n) _____ staffing policy seeks the best people for key jobs throughout the organization, regardless of nationality.

Back 9

geocentric

Front 10

A citizen of India who moves to the United States to work at the headquarters of an American company would be classified as a(n) _____.

Back 10

inpatriate

Sometimes the term inpatriates is used to identify a subset of expatriates who are citizens of a foreign country working in the home country of their multinational employer.

Front 11

The most common approach to expatriate pay is the ________ approach. It equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home.

Back 11

Balance sheet approach

Front 12

A _______ strategy depends more on mass media advertising to communicate the marketing message to potential consumers.

Back 12

pull strategy

Front 13

In a ________ retail system, a few retailers supply most of the market.

Back 13

concentrated

Front 14

Which term refers to the choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted markets?

Back 14

Marketing mix

Front 15

_____ refers to the number of intermediaries between the producer (or manufacturer) and the consumer.

Back 15

Channel length

Front 16

Teams composed of representatives from R&D, marketing, and production that are involved in new product development are referred to as _____.

One way to achieve cross-functional integration

Back 16

cross-functional teams

Front 17

For most consumer durables, product reliability may be a more important attribute in less developed nations, where such a purchase may account for a major proportion of a consumer's income, than it is in advanced nations.

Back 17

TRUE

Front 18

A _____________ retail system is one in which there are many retailers, none of which has a major share of the market.

Back 18

fragmented retail system

Front 19

Japan, with a high population density and a large number of urban centers that grew up before the automobile, has a retail system with many small stores serving local neighborhoods and to which people frequently walk. Japan can be said to have a _____.

Back 19

fragmented retail system

Front 20

Antidumping rules set a floor under export prices and limit firms' ability to pursue strategic pricing.

Back 20

TRUE

Front 21

_____ is the use of price as a competitive weapon to drive weaker competitors out of a national market.

Once the competitors have left the market, the firm can raise prices and enjoy high profits.

Back 21

Predatory pricing

Front 22

_____ refers to the expertise, competencies, and skills of established retailers in a nation and their ability to sell and support the products of international businesses.

Back 22

Channel quality

Front 23

The government of a country awards a multi-billion dollar fighter aircraft contract to a foreign company with the condition that the company will push some subcontracting work toward domestic manufacturers. This is an example of a(n) _____.

Back 23

offset

Front 24

The drawback of a JIT system is that it leaves a firm without a buffer stock of inventory.

Back 24

TRUE

Front 25

Which term describes the ability of companies to use flexible manufacturing technology to reconcile two goals that were once thought to be incompatible—low cost and product customization?

Back 25

Mass customization

Front 26

Which of the following is a certification requirement necessary before a firm is allowed access to the European Union marketplace?

Back 26

ISO 9000

Front 27

Which of the following covers a range of manufacturing technologies designed to
1) Reduce setup times for complex equipment
2) Increase the utilization of individual machines through better scheduling
3) Improve quality control at all stages of the manufacturing process

Back 27

Lean production

Front 28

_____ refers to the idea that valuable knowledge does not reside just in a firm's domestic operations; it may also be found in its foreign subsidiaries.

Back 28

Global learning

A major aspect of a transnational strategy is a belief in global learning.

Front 29

Many electronic components and pharmaceuticals have a _______ value-to-weight ratios; they are expensive and they do not weigh very much. Thus, even if they are shipped halfway around the world, their transportation costs account for a very small percentage of total costs.

Back 29

high value-to-weight

Front 30

__________ is the modern successor to TQM, is a statistically based philosophy that aims to reduce defects, boost productivity, eliminate waste, and cut costs throughout a company.

Back 30

Six Sigma

Front 31

Which term refers to the level of output at which most plant-level scale economies are exhausted?

Back 31

Minimum efficient scale

Front 32

A draft is sometimes referred to as a ________.

Back 32

bill of exchange.

Front 33

In the US, the most comprehensive source of export information is the _____.

Back 33

Department of Commerce

Front 34

Which of the following documents issued to the exporter by the common carrier transporting the merchandise serves as a receipt, a contract, and a document of title?

Back 34

bill of lading

Front 35

The term _____ refers to the use of a specialized third-party trading house in a countertrade arrangement.

Back 35

switch trading

Front 36

Issued by a bank at the request of an importer, the _____ states that the bank will pay a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents.

Back 36

letter of credit

Front 37

Typically, reactive firms do not even consider exporting until their domestic market is saturated and the emergence of excess productive capacity at home forces them to look for growth opportunities in foreign markets.

Back 37

TRUE

Front 38

The problem of lack of trust with regard to payment and delivery between the importer and the exporter is usually solved by using a _____ to act as an intermediary.

Back 38

bank

Front 39

_____ are export specialists who act as an export marketing department for client firms.

Back 39

Export management companies

Front 40

_____ is an alternative means of structuring an international sale when conventional means of payment are difficult, costly, or nonexistent.

Back 40

Countertrade

Front 41

From an exporter's perspective, an ______ is more attractive than a straight

Back 41

offset

Front 42

Company A agrees to give Company B the rights to use its intangible property for five years. Company B is located in a different country. In return for the rights, Company B pays a royalty fee to Company A. Which arrangement is being discussed here?

Back 42

Licensing

Front 43

A _________________ is an arrangement whereby a licensor grants the rights to intangible property to another entity (the licensee) for a specified period, and in return, the licensor receives a royalty fee from the licensee.

Back 43

licensing agreement

Front 44

A _________ entails establishing a firm that is jointly owned by two or more otherwise independent firms. One of the disadvantages of a joint venture is that the firm that enters into a joint venture risks giving control of its technology to its partner.

Back 44

joint venture

Front 45

_____________ avoids the often substantial costs of establishing manufacturing operations in the host country. It may also help a firm achieve experience curve and location economies.

Back 45

Exporting

Front 46

Compared to greenfield investments, what is an advantage of acquisitions?

Back 46

Acquisitions are quick to execute.

By acquiring an established enterprise, a firm can rapidly build its presence in the target foreign market.

Front 47

A drawback to ___________ is that high transport costs can make exporting uneconomical, particularly for bulk products.

Back 47

exporting

Front 48

The advantages frequently associated with entering a market early are commonly known as _____________.

Back 48

first-mover advantages.

Front 49

The greater the pressures for cost reductions are, the more likely a firm will want to pursue some combination of exporting and wholly owned subsidiaries.

Back 49

true

Front 50

____________ property includes patents, inventions, formulas, processes, designs, copyrights, and trademarks.

Back 50

Intangible property

Front 51

What is a disadvantage of establishing a wholly owned subsidiary in a foreign country?

Back 51

High costs and risks

Front 52

In which mode of market entry does a contractor agree to handle every detail of the operation for a foreign client, and hand over the operation once it is fully functional?

Back 52

Turnkey project

Front 53

Which of the following is an infrastructure difference between countries which calls for product customization?

Back 53

Difference in consumer electrical systems across continents

Front 54

___________ is most appropriate when there are substantial differences across nations with regard to consumer tastes and preferences and where cost pressures are not too intense.

By customizing the product offering to local demands, the firm increases the value of that product in the local market.

Back 54

Localization

Front 55

Which of the following refers to systematic reductions in production costs that have been observed to occur over the life of a product?

Back 55

Experience curve

Front 56

____________ refer to cooperative agreements between potential or actual competitors.

Back 56

Strategic alliances

Front 57

A strategy that focuses primarily on increasing the attractiveness of a product is a __________ strategy.

Back 57

differentiation strategy

Front 58

Strategic alliances refer to cooperative agreements between potential or actual competitors. Strategic alliances run the range from formal joint ventures, in which two or more firms have equity stakes, to short-term contractual agreements, in which two companies agree to cooperate on a particular task.

Back 58

true

Front 59

Firms that pursue a _____ strategy are trying to simultaneously achieve low costs through location economies, economies of scale, and learning effects; differentiate their product offering across geographic markets to account for local differences; & foster a multidirectional flow of skills between different subsidiaries in the firm's global network of operations.

Back 59

transnational strategy

Front 60

_____ refer to the reductions in unit cost achieved by producing a large volume of a product.

Back 60

Economies of scale

Front 61

A(n) _____ strategy focuses on increasing profitability by customizing the firm's goods or services so that they provide a good match to tastes and preferences in different national markets.

Back 61

localization strategy