BUS357 Week 4 Quiz

Question 1

It is most accurate to say that as a result of the global economic crisis, the potential for profitability in all sorts of industries is ________.

decreased

increased

Correct!

uncertain

predictable

 

Question 2

Which of the following is an external influence on international business managers?

production plant locations

Correct!

host country monetary policy

supply chain linkages

product design standards

 

Question 3

The industry organization (IO) paradigm reports that, on average, the best predictor of firm strategy is the ________.

company’s stockpile of assets, skills, and capabilities

aggressiveness of a company’s objectives

consistency among a company’s structure, systems, and processes

Correct!

structure of the industry in which it competes

 

Question 4

Which of the following is the purpose of a company’s value proposition?

to exceed customers' expectations

to force competitors into a price war

to identify consumers for whom the company creates products

Correct!

to explain why a consumer should buy the company’s products

 

Question 5

________ is the framework that managers apply to determine the competitive moves and business approaches that run the company.

Competition

Growth

Correct!

Strategy

Independence

 

Question 6

Which of the following is NOT true about the harvesting or divestment of foreign operations?

One of the motives is to use resources where the performance prospects are better.

Companies may harvest or divest by selling existing facilities.

Closing a facility may be difficult because of governmental performance contracts.

Correct!

Companies have tended to divest too soon, rather than working to improve performance.

 

Question 7

________ is a system of shared values about what is important and beliefs about how the world works among the employees of an organization.

Organizational system

Organizational structure

Correct!

Organizational culture

Organizational vision

 

Question 8

Which of the following is NOT a means for companies to gradually deepen their international commitments?

going first to countries dissimilar to their home countries, but using intermediaries to handle foreign operations

Correct!

beginning by making a wholly owned foreign direct investment in a country dissimilar to their home country

entering foreign countries one at a time

initially limiting foreign functional responsibility by exporting rather than producing abroad

 

Question 9

Most MNEs keep two sets of books, one to comply with ________ and another to comply with ________.

host-country principles; supply requirements

Correct!

home-country principles; market requirements

employee requirements; customer requirements

international principles; local principles

 

Question 10

MNEs use reporting systems for foreign operations that are similar to the ones they use domestically ________.

primarily in the early stages of operating abroad

Correct!

because common systems allow comparative evaluations

until the subsidiary demonstrates mastery of the form

only in those countries with extremely similar systems of information technology