IBU637 Comparative International Management Final Exam

Question 1The leadership scholar that coined the terms "Theory X" and "Theory Y" management was:

                Robert Blake

                William Ouchi

                Sheila Puffer

                Douglas McGregor

Question 2_____ risk is the likelihood that a multinational corporation's foreign investment will be constrained by a host government's policies.

                Social

                Development

                Legal

                Political

Question 3Explain the relevance of TQM in decision making and controlling processes.

TQM (total quality management) is a process oriented philosophy aimed at the continuous improvement of the processes and management of an organization. Decision making is a key management function and process that is critical for the survival and success of the firm. Yet, TQM efforts have up to now largely ignored the quality of decisions made by management, focusing rather on the more traditional value-adding processes

Question 4The following actions raise the political risk of doing business in China except:

                Interpretation of rules and regulations by officials

                Industrial piracy

                Pressure on the MNCs to do things in a particular way

                Concerns on safety and reliability of product quality

Question 5Over the past decade political risk has become:

                An area closely watched by developing countries, but virtually ignored by developed countries

                A vital area for MNCs to assess and manage

                A much less pervasive and minor threat facing international management

                Virtually obsolete for international firms as a result of controls imposed by the UNO

Question 6Not all MNCs are confident about international investment in countries with:

                Low labor costs

                Political unrest

                Emerging economies

                Cultural differences

Question 7Expatriate managers who are citizens of the country where the multinational corporate is headquartered are referred to as:

                Host-country nationals

                Home-country nationals

                Inpatriates

                Third-country nationals

Question 8There are four basic sources that MNCs can tap for positions. These are:

                Host-country nationals, third-country nationals, United Nations placements and IMF placements

                Home-country nationals, IMF placements, inpatriates and multipatriates

                Home-country nationals, host-country nationals, IMF placements and multipatriates

                Home-country nationals, host-country nationals, third-country nationals and inpatriates

Question 9_____ is a psychological process through which unsatisfied wants or needs lead to drives that are aimed at goals or incentives.

                Ability

                Inducement

                Assurance

                Motivation

Question 10A _____ manager believes that people are basically lazy and that coercion and threats of punishment must be used to get them to work.

                Theory Z

                Theory X

                Theory A

                Theory Y

Question 11All of the following are assumptions that underlie Theory Y management except:

                The expenditure of physical and mental effort at work is as natural to people as resting or playing

                Commitment to objectives is determined by the rewards that are associated with their achievement

                Under proper conditions, the average human being learns not only to accept but to seek responsibility

                The primary need of employees is job security

Question 12Work-motivation in terms of what arouses, energizes or initiates employee behavior are explained by:

                Extrinsic theories

                Content theories

                Intrinsic theories

                Process theories

Question 13When the subsidiary is selling new products in growing markets, _____ decision making is more likely.

                External

                Decentralized

                Centralized

                Neutralized

Question 14An individual from a host-country or a third-country national who is assigned to work in the home country is a(n):

                Expatriate

                Multipatriate

                Inpatriate

                Quasi-patriate

Question 15Work-motivation theories can be broken down into two general categories which are:

                Method and outcome

                Internal and external

                Implicit and explicit

                Content and process

Question 16(p. 456) The process of influencing people to direct their efforts toward the achievement of some particular goal is referred to as:

                Leadership

                Management

                Directing

                Controlling

Question 17Home-country nationals are frequently called _____, which refers to those who live and work away from their home country.

                Inpatriates

                Third-country nationals

                Expatriates

                Multipatriates

Question 18The factors Welsh, Luthans and Sommer observed among the Russian workforce that seemed to increase worker performance are:

                Value of extrinsic reward and participative techniques

                Value of extrinsic reward and behavioral management

                Participative techniques and behavioral management

                Value of intrinsic reward and participative techniques

Question 19If decentralized decision-making is in place, decisions are:

                Made at the top management level

                Made at the middle management level

 

                Delegated to operating personnel

                Contracted to external consultants

Question 20_____ reviews major political decisions that are likely to affect all business conducted in a particular country.

                Macro political risk analysis

                Micro political risk analysis

                Standard political risk analysis

                Multidimensional political risk analysis

Question 21Which of the following factors encourages the use of centralized decision-making?

                Small company size

                Small capital investment

                Relatively low importance to the MNC

                Highly competitive environment

Question 22Although a number of approaches to decision-making are used around the world, the overall trend currently is toward:

                Decentralization

                Team-based decision-making

                Centralization

                Decision-making by consensus

Question 23The more sophisticated the level of technology, the greater the use of _____ decision-making.

                Participative

                Centralized

                Decentralized

                Team-based

Question 24Headquarters nationals is another term used for:

                Third-country nationals

                Home-country nationals

                Inpatriates

                Host-country nationals

Question 25These are managers who are citizens of countries other than the one in which the MNC is headquartered or the one in which they are assigned to work by the MNC.

                Multipatriates

                Home-country nationals

                Inpatriates

                Third-country nationals

Question 26If centralized decision-making is in place, the most important decisions are made at the:

                Top management level

                Middle management level

                Level of self-managed work teams

                Operational personnel

Question 27In domestic situations, when competition increases, management will:

                Integrate product or service lines

                Centralize authority

                Decentralize authority

                Diversify product and service lines

Question 28Process theories of work motivation:

                Explain how employee behavior is aroused and energized

                Explain how employee behavior is initiated

                Give a composite picture of employee motivation in a particular region

                Have more value to the study of employee motivation in international setting

Question 29The three basic elements in the process of motivation are:

                Needs, abilities and desires

                Desires, drives and accomplishments

                Needs, drives and goal attainment

                Perceptions, attitudes and goal attainment

Question 30The following factors encourage the use of centralized decision-making except:

                Large company size

                Large capital investment

                Heterogeneous product lines

                High degree of technology

Question 32According to this theory, a great deal of creative potential basically goes untapped and if these abilities can be tapped, workers will provide much higher quantity and quality of output.

                Theory X

                Theory Z

                Theory Y

                Theory A

Question 33The first assumption about the motivation process is that it is:

 

                Universal

                Country specific

                Culturally explicit

                Regionally distinct

Question 34This manager believes that under the right conditions, people will not only work hard but also seek increased responsibility and challenges.

                Theory X

                Theory Z

                Theory Y

                Theory A

Question 35The following factors encourage the use of decentralized decision-making except:

                Small company size

                Relatively low importance to MNC

                High degree of technology

                Stable environment

Question 36In recent years _____ risk analysis has become of increasing concern to MNCs because of the growing number of countries that are finding their economies in trouble as in Southeast Asia or even worse, unable to make the transition to a market-driven economy.

                Micro

                Basic

                Macro

                Complex

Question 37_____ are local managers who are hired by the MNC.

                Inpatriates

                Indigenous-nationals

                Host-country nationals

                Home-country nationals

Question 38In China _____ is an important need and _____ is a goal.

                Group affiliation; professional achievement

                Professional achievement; individual success

                Group affiliation; harmony

                Individual success; harmony

 

Question 39What characteristics of high achievers did David McClelland identify?

Question 40Most research in international human resource management has been _____, because these theories examine motivation in more general terms and are more useful in creating a composite picture of employee motivation in a particular country or region.

                Content-oriented

                Context-oriented

                Procedure-oriented

                Process-oriented

Question 41The following is not an example of risk factors for an MNC:

                Freezing the movement of assets out of the host country

                Limits on the remittance of profits or capital

                Devaluing the currency

                Complying with contractual terms of agreements

Question 42All of the following are assumptions that underlie Theory X management except:

                By their very nature, people do not like to work and will avoid it whenever possible

                Workers have little ambition, try to avoid responsibility and like to be directed

                The primary need of employees is job security

                The expenditure of physical and mental effort at work is as natural to people as resting

Question 43U.S. managers believe that to motivate workers, it is necessary to satisfy their:

                Higher-order needs

                Safety needs

                Lower-order needs

                Physiological needs

Question 44Historically, MNCs have staffed key positions in their foreign affiliates with:

                Home-country nationals

                Host-country nationals

                Inpatriates

                Third-country nationals

Question 45Leader behaviors can be translated into three commonly recognized styles. These are:

                Autocratic, suppressive and cooperative

                Authoritarian, paternalistic and participative

                Suppressive, paternalistic and team-oriented

                Cooperative, team-oriented and participative

 

Question 46Which of the following is not a challenge of doing business in Russia?

                Corruption

                Red tape

                Strong faith in government policies

                Security concerns

Question 47China's decision regarding restrictions on foreign exchange transactions is a _____ political risk because it affects all MNCs.

                Micro

                Standard

                Macro

                Multidimensional

Question 48Which of the following statements about third-country nationals is false?

                TCN managers can often achieve corporate objectives more effectively than do expatriates

                During periods of rapid expansion, TCNs can substitute for expatriates in well-established operations

                During rapid expansion, TCNs can offer different perspectives that can expand on the narrowly focused viewpoints of local nationals

                In joint ventures, TCNs can demonstrate a global image and bring unique cross-cultural skills to the relationship