Question 1

Part of China's economic growth has been attributed to guanxi, which is:
A)​A process of rapid acquisition and divestment.
B)​Formal institutional structures.
C) ​The nouveau riche of China.
D) ​Interpersonal networks and relationships.

Accepted Answer

Guanxi refers to interpersonal networks and relationships, often built on reciprocity and mutual obligation. In China, these relationships have played a significant role in business transactions and access to resources, as trust and personal connections are often valued over formal institutional structures. Therefore, guanxi has been seen as a key factor in China's economic growth.

Question 2

In an institution-based view of strategy, the informal rules of the game:
A)Must be avoided because global business is not a mere game.
B)Are being replaced by formal rules.
C) Often require that the firm seek to change the informal rules instead of going along with those rules.
D) Need to be understood by firms.

Accepted Answer

In an institution-based view of strategy, understanding the informal rules of the game is crucial for the success of a firm. These rules are deeply ingrained in the political, social, and cultural fabric of a country or region and can have a significant impact on how business is conducted. Therefore, firms must be aware of these rules and learn to navigate them effectively to achieve their strategic objectives.

Question 3

In looking at strategy, the authors address all of the following questions EXCEPT:
A)​Why do firms differ?
B)​How do firms behave?
C) ​What determines the scope of the firm?
D) ​Is strategy really necessary in business?

Accepted Answer

The authors do not address the question of whether strategy is really necessary in business.

Question 4

Globalization is viewed as:
A)A new force sweeping through the world in recent times.
B)A long-run historical evolution since the dawn of human history.
C) A pendulum that swings from one extreme to another from time to time.
D) All of the above.

Accepted Answer

The answer of Globalization is viewed as:
A)A new force sweeping...

Question 5

For those who view globalization as a "pendulum," the practice of _________________ to identify and assess as well as minimize the effects of unfortunate events is important.
A)​risk management
B)​strategy as action
C) ​intended strategy
D) ​SWOT analysis

Accepted Answer

The practice of risk management involves identifying and assessing potential risks associated with globalization, and implementing measures to minimize their impact. As globalization can often bring about unexpected events or outcomes, such as economic downturns, political instability, or natural disasters, it is important to have a strategy in place for managing and mitigating risks.

Question 6

The word _______has now become the most famous Chinese business word to appear in English-language media.
A)keiretsu
B)guanxi
C) chaebol
D) blat

Accepted Answer

The word "guanxi" has become the most famous Chinese business word to appear in English-language media. Guanxi refers to the interpersonal relationships or social networks that are essential to conducting business in China.

Question 7

Viewing each country as a unique market and therefore somewhat isolated is known as _________, whereas ___________ sees market integration as subject to some barriers that do not totally insulate those markets.
A)​antiglobalization; localization
B)​localization; globalization
C) ​globalization; semiglobalization
D) ​localization; semiglobalization

Accepted Answer

The answer of Viewing each country as a unique market...

Question 8

Which of the following was the first to express concern about international competition from low-cost countries?
A)American political leaders in the twenty first century.
B)Union leaders in the last half of the twentieth century.
C) A first-century Roman emperor.
D) The King of England in the late 1700s.

Accepted Answer

The first-century Roman emperor, Tiberius, was concerned about the competition of cheap goods from India and China.

Question 9

When looking at globalization, many executives, policymakers, and scholars:
A)Consistently side with nongovernmental organizations in opposing globalization.
B)See more costs than benefits in globalization as it exists today.
C) Fail to take into sufficient account the social, political, and environmental costs associated with globalization.
D) Recognize that most other members of society share the same view of globalization.

Accepted Answer

Many executives, policymakers, and scholars fail to take into sufficient account the social, political, and environmental costs associated with globalization. While there are certainly benefits to globalization, such as increased economic opportunities and access to goods and services from around the world, there are also significant costs, such as increased income inequality, exploitation of workers and resources, and environmental degradation. It is important for those in positions of power to consider these costs when making decisions about globalization.

Question 10

When reviewing the diversity of management practices around the world, the quality of management practices:
A)​Depends on the interpersonal relationships among managers.
B)​Is tightly related to size of firm, economic development of markets, and formal structures.
C) ​Seems to correlate with the level of economic development.
D) ​Relies heavily the assessment of external opportunities and threats.

Accepted Answer

Research has shown that there is a correlation between the quality of management practices and the level of economic development. As economies develop, there is a greater need for efficient management, which leads to improvements in management practices. The other choices are not as strongly related to the quality of management practices.

Question 11

A resource-based view of strategy sees a firm's success as primarily dependent on:
A)​A firm's opportunities and threats.
B)​A firm's strengths and weaknesses.
C) ​The competitive forces of the firm's market.
D) ​The formal and informal rules of the game.

Accepted Answer

A resource-based view of strategy focuses on a firm's internal strengths and weaknesses, such as unique resources, capabilities, and competencies. This approach emphasizes that a firm's success is primarily dependent on its ability to use its resources to gain a competitive advantage over its rivals. The other options, such as opportunities and threats, competitive forces, and formal and informal rules of the game, are external factors that could impact a firm's success, but are not the primary focus of a resource-based view of strategy.

Question 12

The current era of globalization originated in the aftermath of:
A)World War I.
B)World War II.
C) The Vietnam Conflict.
D) The Gulf War.

Accepted Answer

The current era of globalization began in the aftermath of World War II with the creation of international organizations like the United Nations, World Bank, and International Monetary Fund. This led to increased international trade, cooperation, and integration, ultimately leading to a globalized economy.

Question 13

"Global strategy" refers to:
A)A particular theory on how to compete.
B)Offering standardized products and services on a worldwide basis.
C) Strategy of firms around the globe-essentially various firms' theories about how to compete successfully.
D) All of the above.

Accepted Answer

Global strategy refers to the strategy of firms around the globe, essentially various firms' theories about how to compete successfully.

Question 14

What is the difference between developed economies and emerging economies? Give examples of countries that would be consider to have developed economies and those that have emerging economies.

Accepted Answer

The answer of What is the difference between developed economies...

Question 15

The _______ view primarily focuses on the ______ in a SWOT analysis.
A)Industry-based; OT
B)Resource-based;OT
C) Industry-based; SW
D) Resource-based; SW

Accepted Answer

The industry-based view primarily focuses on the opportunities and threats in a SWOT analysis.

Question 16

The Japanese practice of employing a network form of supplier management rather than using costly acquisitions that is common in the West is known as:
A)​Keiretsu.
B)​Guanxi.
C) ​Chaebol.
D) ​Blat.

Accepted Answer

The practice of employing a network form of supplier management in Japan is known as Keiretsu. This involves businesses collaborating and forming a network of suppliers and customers, reducing the need for costly acquisitions.

Question 17

Diversification:
A)Is a relatively new concept in Western business .
B)Is believed by Western media to destroy value in emerging economies.
C) Is a poor idea and results in lower or no profitability in emerging economies.
D) Should be dismantled in emerging economies, based on recent research.

Accepted Answer

Western media often criticizes diversification in emerging economies, suggesting it can lead to inefficiencies and destroy value due to challenges like lack of expertise and resources.

Question 18

The values and beliefs about globalization held by the general public are:
A)​Nearly identical to those held by executives, policymakers, and scholars.
B)​Nearly identical to those held by current business school students, but different from those of executives, policymakers, and scholars.
C) ​Much more positive than those held by executives, policymakers, and scholars.
D) ​More negative than those held by current business school students.

Accepted Answer

The answer of The values and beliefs about globalization held...

Question 19

In determining the success and failure of firms around the globe, strategic managers will look at :
A)​How to acquire, leverage, and sustain competitive advantage over time.
B)​A comparative analysis of industry-based, resource-based, and institution-based practices.
C) ​How to best standardize a firm's products and services on a worldwide basis.
D) ​A standardized balanced scorecard across industries.

Accepted Answer

In determining the success and failure of firms, strategic managers will primarily focus on how to acquire, leverage, and sustain competitive advantage over time, as it is considered to be the key factor in achieving long-term success. While industry-based, resource-based, and institution-based practices are important considerations, they are not the primary focus of strategic managers. The standardization of products and services on a worldwide basis may be a goal for some firms, but it is not a determining factor in success or failure. A standardized balanced scorecard is a tool used to measure performance, but it is not the primary focus of strategic managers in determining success or failure.

Question 20

Much of our knowledge about "the firm" is from research on firms in:
A)Anglo-American capitalism.
B)Japan after World War II.
C) German mathematical models.
D) Emerging markets.

Accepted Answer

Although research has been conducted on firms in various regions, the majority of our knowledge about "the firm" comes from studies on firms in Anglo-American capitalism, including the United States and the United Kingdom.

Quiz 1: Strategizing Around the Globe

Part of China's economic growth has been attributed to guanxi, which is:

In an institution-based view of strategy, the informal rules of the game:

In looking at strategy, the authors address all of the following questions EXCEPT:

Globalization is viewed as:

For those who view globalization as a "pendulum," the practice of _________________ to identify and assess as well as minimize the effects of unfortunate events is important.

The word _______has now become the most famous Chinese business word to appear in English-language media.

Viewing each country as a unique market and therefore somewhat isolated is known as _, whereas ___ sees market integration as subject to some barriers that do not totally insulate those markets.

Which of the following was the first to express concern about international competition from low-cost countries?

When looking at globalization, many executives, policymakers, and scholars:

When reviewing the diversity of management practices around the world, the quality of management practices:

A resource-based view of strategy sees a firm's success as primarily dependent on:

The current era of globalization originated in the aftermath of:

"Global strategy" refers to:

What is the difference between developed economies and emerging economies? Give examples of countries that would be consider to have developed economies and those that have emerging economies.

The _ view primarily focuses on the in a SWOT analysis.

The Japanese practice of employing a network form of supplier management rather than using costly acquisitions that is common in the West is known as:

Diversification:

The values and beliefs about globalization held by the general public are:

In determining the success and failure of firms around the globe, strategic managers will look at :

Much of our knowledge about "the firm" is from research on firms in: