Question 1

Geert Hofstede analysed societies along five cultural dimensions. Four cultural dimensions are: power distance, uncertainty avoidance, individualism-collectivism and:

Accepted Answer

Hofstede's fifth dimension, initially identified in a study with Michael Bond in 1987, is called "long-term versus short-term orientation," originally termed "Confucian dynamism." It was later relabeled to "long-term orientation versus short-term normative orientation" in more recent publications. The "achievement versus nurturing" orientation, also known as "masculinity versus femininity," is actually one of the original four dimensions Hofstede identified, not the fifth. Therefore, the correct answer reflecting the dimension not listed in the question but part of Hofstede's cultural dimensions framework is "long-term versus short-term orientation," which is closest to the option provided as "long-term-median-term orientation." However, since none of the options accurately represents this dimension, the best choice given the options and based on the original question's intent is B) achievement-nurturing orientation, acknowledging the potential confusion due to the misalignment with Hofstede's actual dimensions.

Question 2

In a society where there is a nurturing orientation, one would expect to find greater emphasis on:

Accepted Answer

In a nurturing-oriented society, there is a focus on caring for others and ensuring well-being, which aligns with emphasizing working conditions and security.

Question 3

Porter defines the 'competitive advantage of nations' as:

Accepted Answer

Porter's theory of the competitive advantage of nations focuses on how the unique characteristics of a nation's environment (such as its economic, social, and political conditions) can create conditions that foster competitiveness and innovation in particular industries. This includes how a nation's companies gain competitive advantages in the global marketplace.

Question 4

Porter identifies four national attributes that alone and together set the diamond of national advantage. These are factor conditions, related and supporting industries, firm strategy, structure and rivalry and
_________________.

Accepted Answer

The correct answer is demand conditions. According to Michael Porter's Diamond Model, the four attributes that contribute to a nation's competitive advantage are: factor conditions, demand conditions, related and supporting industries, and firm strategy, structure, and rivalry. Demand conditions in the home market can help companies create a stronger competitive position globally.

Question 5

A company has a variety of methods it might choose for entering into business competition in a foreign country. The text indicates that a relatively low-risk choice for a manufacturing company is:

Accepted Answer

Exporting is considered a relatively low-risk method for a manufacturing company to enter into business competition in a foreign country because it allows the company to avoid the costs and complexities of setting up operations abroad while still accessing new markets.

Question 6

When a company tries to deter competition by selling through foreign sales representatives who are locals, it is likely that the company is addressing one of the disadvantages associated with:

Accepted Answer

This approach is typically associated with exporting, as using local sales representatives helps mitigate some of the challenges of entering a foreign market directly, such as cultural differences, local market knowledge, and regulatory compliance.

Question 7

Which of the following strategies for entering international markets results in two or more companies agreeing to work together, with each of the companies owning part of the new enterprise?

Accepted Answer

A joint venture is a strategic alliance where two or more parties, usually businesses, agree to create a new entity by both contributing equity, sharing revenues, expenses, and control of the enterprise. This is distinct from the other options as it specifically involves collaboration and shared ownership in a new venture.

Question 8

Disadvantages associated with strategic alliance are:

Accepted Answer

The answer of Disadvantages associated with strategic alliance are:
...

Question 9

Globalisation is based on the idea of products used around the globe with:

Accepted Answer

Globalisation involves the widespread distribution of products and services with minimal changes to specifications, allowing for efficiency and consistency across international markets.

Question 10

Permitting subsidiaries to adapt product and services to suit their needs reflects the ______________
Approach to international business strategy:

Accepted Answer

National responsiveness strategy emphasizes adapting products and services to fit the specific needs of each country or region in which a company operates, allowing subsidiaries some autonomy in decision-making to better cater to local preferences and requirements.

Question 11

The multifocal emphasis approach to international business strategy would best be described as:

Accepted Answer

The multifocal emphasis approach in international business strategy involves balancing global integration with local responsiveness. This means that while a company seeks to benefit from global efficiencies, it also adapts its operations, products, and strategies to meet the specific needs of the local markets it operates in.

Question 12

Bartol indicates that MNCs using the _______________ approach to international strategy are usually considered difficult to manage.

Accepted Answer

The multifocal emphasis approach to international strategy involves balancing the need for global integration with the need to be responsive to local conditions. This approach can make MNCs difficult to manage due to the complexity of simultaneously addressing global efficiencies and local responsiveness.

Question 13

A structure where top level executives have world-wide responsibility for such areas as marketing, manufacturing and finance is known as:

Accepted Answer

Worldwide functional divisions are a structure where top-level executives have global responsibility for specific functions such as marketing, manufacturing, and finance. This structure allows for specialization and efficiency in managing those functions on a global scale.

Question 14

One form of organisation structure for MNCs tends to put particular emphasis on the coordination of product-related decisions at the parent company level. This form of organisation structure is referred to as:

Accepted Answer

Worldwide product divisions focus on the coordination of product-related decisions at the parent company level, allowing MNCs to streamline and specialize their product strategies globally.

Question 15

The organisation structure which would be appropriate for an MNC whose products are technologically complex, highly diverse or subject to rapid change and whose international strategy is one of worldwide integration is:

Accepted Answer

The answer of The organisation structure which would be appropriate...

Question 16

The organisation structure for international businesses which feature a separate division to which all foreign subsidiaries report is called:

Accepted Answer

The international division structure is characterized by a separate division in a company to which all foreign subsidiaries report, distinguishing it from other structures that might integrate international operations more directly into their domestic operations or across different product lines.

Question 17

Robock & Simmonds (1998) discovered that the ___________________ is the most prevalent form of organisation structure among MNCs.

Accepted Answer

Robock & Simmonds (1998) found that the international division structure is the most common among multinational corporations (MNCs). This structure allows companies to manage operations in each country separately, which can be more effective for handling the complexities of different markets.

Question 18

In an MNC, if your title is 'Vice President of Middle Eastern Division', most likely your company uses the ______________ form of organisation structure.

Accepted Answer

The title 'Vice President of Middle Eastern Division' suggests that the organization is structured around geographic regions, where responsibilities and decision-making are based on specific areas of the world.

Question 19

The rather complicated form of organisation structure sometimes used by MNCs which splits authority and responsibility between the geographic regions and either the product or the function (or sometimes both) is called the _______________ form of structure.

Accepted Answer

The global matrix form of structure is used by multinational corporations (MNCs) to manage the complexity of operating across different geographic regions and product lines or functions, by splitting authority and responsibility between these dimensions.

Question 20

One approach to managerial positions in overseas operations, the _______________, emphasises the need for each subsidiary to have a manager who is well-versed in the policies and procedures of the overall multinational company.

Accepted Answer

The parent company option emphasizes the need for subsidiaries to have managers who understand the policies and procedures of the overall multinational company, ensuring consistency and alignment with the parent company's goals and strategies.

Quiz 17: International Management