Chapter+07 - Cross Culture Management test bank PDF

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International Management, 7e (Deresky) Chapter 7: Global Alliances and Strategy Implementation 1) The Haeir Group achieved rapid global growth by doing all of the following EXCEPT ________. A) acquiring companies with significant market potential B) implementing a performance management system C) entering markets through franchise agreements D) forming strategic alliances in foreign markets Answer: C Diff: 3 Page Ref: 233 Chapter: 7 Skill: Concept 2) Which of the following terms refers to working partnerships between MNCs across national boundaries and often across industries? A) transnational corporations B) strategic alliances C) foreign subsidiaries D) turnkey operations Answer: B Diff: 1 Page Ref: 233 Chapter: 7 Skill: Concept 3) Strategic alliances are also known as ________. A) competitive strategies B) cooperative strategies C) independent strategies D) virtual strategies Answer: B Diff: 1 Page Ref: 233 Chapter: 7 Skill: Concept 4) Which of the following is NOT one of the primary categories under which alliances typically fall? A) joint ventures B) equity strategic alliances C) international management D) non-equity strategic alliances Answer: C Diff: 2 Page Ref: 233 Chapter: 7 Skill: Concept

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5) Which of the following most likely caused firms to re-trench operations and cancel joint venture plans in 2009? A) global economic downturn B) international terrorist threats C) fluctuation of the euro D) U.S. political atmosphere Answer: A Diff: 2 Page Ref: 233 Chapter: 7 Skill: Concept 6) Which of the following terms refers to an overseas business owned and controlled by two or more partners? A) multinational enterprise B) foreign direct investment C) global management team D) international joint venture Answer: D Diff: 1 Page Ref: 234 Chapter: 7 Skill: Concept 7) Which of the following terms refers to a new independent entity that is mutually created and owned by two or more parent companies? A) e-business B) subsidiary C) franchise D) joint venture Answer: D Diff: 1 Page Ref: 234 Chapter: 7 Skill: Concept 8) Alliances in which two or more partners have different relative ownership shares in the new venture are called ________. A) cultural strategic alliances B) equity strategic alliances C) non-equity strategic alliances D) transmodal strategic alliances Answer: B Diff: 1 Page Ref: 234 Chapter: 7 Skill: Concept

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9) France's Thomson Electronics combined with China's TCL to form TCL-Thomson Electronics. Thomson owns 33% and TCL owns the remaining 67% of the combined company. This is best described as a(n) ________. A) non-equity strategic alliance B) manufacturing joint venture C) global licensing agreement D) equity strategic alliance Answer: D Diff: 2 Page Ref: 234 Chapter: 7 Skill: Application 10) Alliances that are carried out through contract rather than ownership sharing are called ________. A) cultural strategic alliances B) equity strategic alliances C) non-equity strategic alliances D) transmodal strategic alliances Answer: C Diff: 1 Page Ref: 235 Chapter: 7 Skill: Concept 11) ________ are working partnerships between companies across national boundaries and increasingly across industries. A) Global strategic alliances B) National strategic alliances C) Domestic strategic alliances D) Transitional strategic alliances Answer: A Diff: 1 Page Ref: 235 Chapter: 7 Skill: Concept 12) All of the following are typical reasons for forming cross-border alliances EXCEPT ________. A) avoiding import barriers B) sharing R&D costs and risks C) gaining access to specific markets D) testing marketing campaigns overseas Answer: D Diff: 2 Page Ref: 236 Chapter: 7 Skill: Concept

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13) What is the most likely reason that GM and Toyota would form a cross-border alliance? A) gain access to new markets B) share R&D costs and risks C) avoid import quotas D) reduce political risk Answer: C Diff: 2 Page Ref: 236 Chapter: 7 Skill: Concept 14) Sharing the costs and risks associated with the research and development of new products and processes is the primary reason for cross-border alliances in the ________ industry. A) semiconductor半导体； B) beverage C) tourism D) publishing Answer: A Diff: 1 Page Ref: 236 Chapter: 7 Skill: Concept 15) Firms most likely form cross-border strategic alliances with European companies because ________. A) technology within the EU changes rapidly B) EU regulations favor domestic companies C) franchising and licensing are illegal in the EU D) EU consumers demand foreign-made products Answer: B Diff: 3 Page Ref: 236 Chapter: 7 Skill: Concept 16) Japan's NECNEC 公司，是世界五大电脑制造商之一； and U.S. based AT&T most likely formed a strategic alliance in order to ________. A) reduce political and cultural risks B) avoid licensing requirements C) access new technology and new markets D) develop a mutually useful infrastructure Answer: C Diff: 3 Page Ref: 237 Chapter: 7 Skill: Concept

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17) According to research, which of the following is LEAST likely to cause a global alliance to fail? A) differences in national cultures B) issues with power distribution C) differences in organizational systems D) unnecessary government intervention Answer: D Diff: 3 Page Ref: 237 Chapter: 7 Skill: Concept 18) In a study of corporate alliances in the technology and pharmaceutical 制药的，配药的；药 物；industries, researchers found that decisions regarding the form of governance primarily depended upon the desire to control ________. A) organizational structure B) proprietary technology 专有技术 C) marketing strategies D) distribution methods Answer: B Diff: 3 Page Ref: 237 Chapter: 7 Skill: Concept 19) David Lei noted that the single greatest impediment 障碍 managers face when seeking to learn or renew sources of competitive advantage is that ________. A) great venture partners are hard to find B) technologies change very rapidly C) partners can become competitors 合作伙伴可以成为竞争对手 D) governments can be fickle Answer: C Diff: 3 Page Ref: 237 Chapter: 7 Skill: Concept 20) Which of the following is the primary concern that American computer makers have with production in China? A) The Chinese market is not large enough to sell computer products domestically. B) There will be loss of intellectual property if Chinese companies co-produce computers. C) There are not enough high skilled workers available in China for American companies. D) The Chinese government requires American firms to pay workers specific hourly wages. Answer: B Diff: 3 Page Ref: 238 Chapter: 7 Skill: Concept

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21) The dual role of strategic alliance refers to the ________. A) need to find resources and markets B) need to find people and processes C) conflict between cooperation and competition D) conflict between home and host governments Answer: C Diff: 2 Page Ref: 238 Chapter: 7 Skill: Concept 22) All of the following are examples of the cooperative aspect of strategic alliances EXCEPT ________. A) creating economies of scale in tangible assets B) forming upstream — downstream divisions of labor C) limiting investment risks through shared resources D) learning new intangible skills from alliance partners Answer: D Diff: 3 Page Ref: 238 Chapter: 7 Skill: Concept 23) Which of the following is a competitive aspect of strategic alliances? A) sharing resources to limit investment risk B) lowering exit barriers in mature industries C) accelerating diffusion of industry standards 加快工业标准扩散 D) creating a critical mass to develop new technologies Answer: C Diff: 3 Page Ref: 238 Chapter: 7 Skill: Concept 24) According to research, SMEs should most likely partner locally with MNCs by ________. A) using an indirect means of access B) selling proprietary knowledge C) using direct frontal methods D) implementing new systems Answer: A Diff: 3 Page Ref: 239 Chapter: 7 Skill: Concept

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25) According to research by Dovev Lavie, which of the following is a value creation strategy? 价值创造战略？ A) setting organizational buffers between competing partners B) allying with multiple partners in one industry to limit power C) integrating network and internal resources to create synergies协同，配合，企业合并后的 协力优势或协合作用(synergy的名词复数)； D) aligning organizational units to create coherent interfaces Answer: C Diff: 3 Page Ref: 240 Chapter: 7 Skill: Concept 26) According to research by Dovev Lavie, which of the following best describes the bilateral competition strategy? 双边竞争战略？ A) Set organizational and technological buffers between competing partners B) Avoid partners that compete in your industry if they enjoy superior bargaining power C) Learn and assimilate network resources in order to develop new skills and capabilities D) Align organizational units and create a coherent interface with each partner in the alliance Answer: B Diff: 3 Page Ref: 240 Chapter: 7 Skill: Concept 27) To minimize potential problems in alliances, companies should most likely choose partners with ________. A) competitively sensitive technology B) complementary products and skills C) significant control of the target market D) superior bargaining power in the same industry Answer: B Diff: 3 Page Ref: 240-241 Chapter: 7 Skill: Concept 28) Respondents to a survey of 158 investors and non-investors in Russia in 2005 indicated that doing business in Russia was ________. A) less risky and more profitable than China, India, and South-east Asia B) more risky and less profitable than China, India, and South-east Asia C) as profitable as doing business in Western Europe D) as profitable as doing business in the United States Answer: B Diff: 2 Page Ref: 241 Chapter: 7 Skill: Concept

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29) The level of uncertainty among foreign investors regarding Russia most likely stems from ________. A) Boeing's joint venture with Russian aircraft maker Tupolev B) McDonald's franchises located in Moscow and other Russian cities C) General Motors' joint venture with Russian car maker OAO Avtovaz D) Bell Labs' attempt to conduct research and development with Russian labs Answer: C Diff: 2 Page Ref: 241-242 Chapter: 7 Skill: Concept 30) According to research, all of the following are MNC concerns about doing business in Russia EXCEPT ________. A) bribery B) corruption C) weak legal systems D) currency instability Answer: D Diff: 2 Page Ref: 241 Chapter: 7 Skill: Concept 31) According to experts, managers of foreign companies planning to set up business in Russia should ________. A) realize that paying bribes is a necessary aspect of conducting business in Russia B) assign funds for local promotion and advertising to establish a corporate image C) use only home country managers to avoid problems with local corruption D) avoid communicating with regional authorities about business activities Answer: B Diff: 3 Page Ref: 242-243 Chapter: 7 Skill: Concept 32) Research has shown that the less stable Russian institutional environment has influenced Russian managers to do all of the following EXCEPT ________. A) focus more on short-term benefits B) focus more on modern marketing techniques C) select partners that have complementary capabilities D) select partners that provide access to financial capital Answer: B Diff: 2 Page Ref: 243 Chapter: 7 Skill: Concept

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33) Which of the following is NOT a characteristic of strategic implementation of the McDonald's corporation? A) minimizing autonomy 自治 B) hiring locals whenever possible C) forming paradigm-busting arrangements with suppliers D) making minor changes to the standard menu based on location Answer: A Diff: 2 Page Ref: 243 Chapter: 7 Skill: Concept 34) Which of the following is a strategic implementation used by McDonald's? A) keeping prices low to build market share B) altering menu items significantly to match cultural norms C) using American managers to run international franchises D) forming joint ventures with foreign restaurants to enter new markets Answer: A Diff: 3 Page Ref: 243 Chapter: 7 Skill: Concept 35) Strategic alliance implementation plans require setting up ________ throughout the organization. A) overall policies B) administrative responsibilities C) organizational schedules D) all of the above Answer: D Diff: 2 Page Ref: 243 Chapter: 7 Skill: Concept 36) Which of the following most likely provides a strategic advantage during the implementation of a global alliance? A) employee performance appraisals B) unified technology infrastructure C) employee language training D) coordinated sales efforts Answer: B Diff: 2 Page Ref: 243 Chapter: 7 Skill: Concept

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37) Which of the following factors most significantly affects all other variables necessary for the successful implementation of a global alliance? A) policies B) structure C) leadership D) performance Answer: C Diff: 1 Page Ref: 244 Chapter: 7 Skill: Concept 38) The theory that global sourcing can produce gains in efficiency, productivity, quality, and profitability by fully leveraging talent around the world is known as ________. A) transformational outsourcing转换外包 B) service sector outsourcing C) relationship building D) global offshoring Answer: A Diff: 1 Page Ref: 244 Chapter: 7 Skill: Concept 39) Barton & Green is an MNC based in the U.S. that makes a wide range of consumer cleaning products. Executives at the firm are considering the idea of outsourcing the company's IT infrastructure. Which of the following best supports the argument that Barton & Green should outsource its IT infrastructure to a firm in India, TMC Enterprises? A) The main competitor of Barton & Green outsources all IT functions. B) Outsourcing will enhance Barton & Green's competitiveness. C) Barton & Green's employees frequently need IT support. D) Barton & Green has proprietary technology and processes. Answer: B Diff: 3 Page Ref: 244 Chapter: 7 Skill: Critical Thinking AACSB: Reflective Thinking

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40) Barton & Green is an MNC based in the U.S. that makes a wide range of consumer cleaning products. Executives at the firm are considering the idea of outsourcing the company's IT infrastructure. Which of the following questions is the most relevant to Barton & Green's decision to outsource its IT infrastructure to a firm in India, TMC Enterprises? A) What type of operating system is primarily used by TMC Enterprises? B) What is the attitude of U.S. consumers about TMC Enterprises? C) What is the financial health of TMC Enterprises?TMC企业财务健康是什么？ D) What other firms use TMC Enterprises? Answer: C Diff: 3 Page Ref: 244 Chapter: 7 Skill: Critical Thinking AACSB: Reflective Thinking 41) Opening your own subsidiary in the host country may be better than contracting with an outside firm in the host country if it is crucial for you to ________. A) produce gains in efficiency, productivity, and quality B) keep control of proprietary technology and processes C) minimize jobs losses in the home country D) market your products in the host country Answer: B Diff: 3 Page Ref: 244 Chapter: 7 Skill: Application 42) International joint venture control is how a parent company ensures that the way a joint venture is managed conforms to ________. A) international accounting standards B) qualitative standards C) its own interests D) industry standards Answer: C Diff: 2 Page Ref: 245 Chapter: 7 Skill: Concept 43) Organizational design as a mechanism of joint venture control refers to the ________. A) human resource plans and policies of the joint venture B) type of functional structure suitable for the joint venture C) geographic location of the joint venture's facilities D)amount of decision-making power that the joint venture holds 合资企业持有的决策权 Answer: D Diff: 2 Page Ref: 245 Chapter: 7 Skill: Concept

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44) The most important factor that determines the success or failure of an international joint venture is the ________. A) amount of financial investment B) need for technology C) type of industry D) choice of partner Answer: D Diff: 2 Page Ref: 245 Chapter: 7 Skill: Concept 45) Most problems with international joint ventures involve ________. A) the parent corporation B) the local partner C) differences in accounting standards between nations D) differences in control system information management between nations Answer: B Diff: 2 Page Ref: 245 Chapter: 7 Skill: Concept 46) Where ownership is divided among several partners, the parents are more likely to delegate the operational running of the IJV to ________. A) local IJV management B) parent company management C) middle managers at the parent company level D) management teams from the largest company in the joint venture Answer: A Diff: 2 Page Ref: 245-246 Chapter: 7 Skill: Concept 47) All of the following are examples of international joint venture control mechanisms used by parent firms EXCEPT ________. A) staffing policies B) legal contracts C)regional authorities 地方当局 D) organizational design Answer: C Diff: 2 Page Ref: 245-246 Chapter: 7 Skill: Concept

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48) Which of the following primarily determines the extent of control exercised over an IJV by its parent company? A) staffing choices for top IJV positions 公司岗位人员的选择上 B) policies of the smaller firm C) cultural background D) IJV industry Answer: A Diff: 2 Page Ref: 246 Chapter: 7 Skill: Concept 49) The need for knowledge management in IJVs primarilystems from 茎 ________. A) employee concerns regarding job security and benefits B) cultural and system differences between partners C) local government regulations and restrictions D) proprietary information legalities Answer: B Diff: 3 Page Ref: 246 Chapter: 7 Skill: Concept 50) Which of the following terms refers to the process by which the firm integrates and benefits from the experiences and skills learned by its employees? A) knowledge management B) strategic management C) strategic planning D) labor relations Answer: A Diff: 1 Page Ref: 246 Chapter: 7 Skill: Concept 51) Which of the following is NOT a knowledge management process? A) transferring existing knowledge B) transforming and creating of knowledge C) harvesting knowledge from the IJV to the parents D) distributing knowledge to clients and media outlets Answer: D Diff: 2 Page Ref: 246-247 Chapter: 7 Skill: Concept

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52) All of the following represent government influences on international joint ventures EXCEPT ________. A) copyright protection B) labor union rules C) patent protection D) negotiation practices Answer: D Diff: 2 Page Ref: 247 Chapter: 7 Skill: Concept 53) One of the key differences between Western expatriates and Hungarian managers is that while ________. A) Western expatriates focus on the future, Hungarians 匈牙利人 focus on the short-term B) Western expatriates work in large hierarchical structures, Hungarians work in small, flat structures C) Western expatriates use opaque information systems, Hungarians use transparent information systems D) Western expatriates have informal, administrative HR systems, Hungarians have formal, strategic HR systems Answer: A Diff: 3 Page Ref: 248 Chapter: 7 Skill: Concept 54) Which of the following is a characteristic of Hungarian managers? A) rule driven B) team oriented C) future oriented D) autocratic management style 专制管理方式 Answer: D Diff: 3 Page Ref: 248 Chapter: 7 Skill: Concept AACSB: Multicultural and Diversity 55) What variable is frequently overlooked when deciding on entry strategies and alliances, particularly when the target country is perceived to be similar to the home country? A) political stability B) culture C) currency stability D) competition Answer: B Diff: 2 Page Ref: 248 Chapter: 7 14 Copyright © 2011 Pearson Education, Inc.

Skill: Concept AACSB: Multicultural and Diversity 56) According to research, which of the following is NOT one of the national and corporate cultural differences between the management styles of...