Q1. The process of choosing a course of action among alternative is referred to as---------------------------

A. SupervisionB. DirectingC. Decision-makingD. Controlling

Q2. If centralized decision-making is in place, the most important decisions are made at the--------------

A. Top management levelB. Middle management level.

C. Level of self-managed work teams.D. Operational personnel

Q3. If decentralized decision-making is in place, decisions are--------------------------------

A. Made at the top management levelB. Made at the middle management level.

C. Delegated to operating personnelD. Contracted to external consultants.

Q4. Which of the following factors encourages the use of centralized decision-making?

A. Small company sizeB. Small capital investment

C. Relatively low importance to the MNCD. Highly competitive environment

Q5. The following factors encourage the use of centralized decision-making except----------------------

A. Large company sizeB. Large capital investment

C. Heterogeneous product linesD. High degree of technology

Q6. The following factors encourage the use of decentralized decision-making except------------------

A. Small company sizeB. Relatively low importance to MNC

C. High degree of technologyD. Stable environment

Q7. The more sophisticated the level of technology, the greater the use of ----------------- decision-making.

A. ParticipativeB. CentralizedC. DecentralizedD. Team-based

Q8. Although a number of approaches to decision-making are used around the world, the overall trend currently is toward---------------------

A. DecentralizationB. Team-based decision-making

C. Centralization D. Decision-making by consensus

Q8. In domestic situations, when competition increases, management will------------------------

A. Integrate product or service linesB. Centralize authority.

C. Decentralize authorityD. Diversify product and service lines.

Q9. When the subsidiary is selling new products in growing markets, --------- decision making is more likely.

A. ExternalB. DecentralizedC. CentralizedD. Neutralized

Q10. Which of the following statements best describes risk?

A. Uncertainty when looking to the future. B. Clarity in future decisions.

C. Uncertainty when looking at the pastD. Certainly of not suffering harm/loss

Q11. Which of these is not a source of risk?

A. Political RiskB. Technology RiskC. Environmental RiskD. Functional Risk

Q12. The project manager looks into risks-------------------------------------------------------------------

A. On the projectB. In the Project

C. On top of the projectD. Beside the project

Q13. Why Risk Management is Important? Which answer is incorrect? Discuss

A. Minimizes threats, maximizes opportunities, and optimizes the achievement of project objectives.

B. Reduce the number of threats that materialize into problems and minimize the effects of those that do occur

C. Failing to manage risk will result in more problems, higher benefits and a higher chance of project success.

D. Results in more opportunities being captured proactively and turned into positive benefits for the project.

Q14. What are the four possible options when responding to risk?

A. Avoid, Reduce, Transfer, AcceptB. Accept, Mitigate, Evade, Transfer.

C. Evade, Receive, Transfer, AvoidD. Mitigate, Avoid, Evade, Transfer

Q15. Which factor is not normally considered in risk control?

A. CostB. QualityC. Effortd. none of the above

Q16. Strategic fit can be defined as----------------------------------

a) developing strategies based on opportunities and threats in the external environment.

b) forecasting opportunities and threats in the external environment.

c) reacting to strategic opportunities and threats in the external environment.

d) matching the resources and activities of a firm to the external environment.

Q17. PEST analysis is---------------------------------------------------

a) a broad framework to help managers understand the environment in which their business operates.

b) a checklist to ask how political, economic, strategic, or technological developments can influence an industry and a company.

c) a checklist for forecasting political, economic, strategic, or technological factors.

d) a framework for strategic analysis of internal and external environment.

Q18. Which of the following is NOT an example of a political risk?

a) Government regulationsb) Cost of production

c) Ward) Civil unrest

Q19. Multinational firms engaged in corruption-------------------------------------------------

a) are normally more successful than those that are not engaged in corruption.

b) are likely to become less innovative.

c) can expand faster in global markets.

d) Are always small- and medium-sized enterprises.

Q20. Technology scanning refers to-------------------------------------------------------

a) strategies of multinational firms based on technologies.

b) locating a firm's research centers in countries or regions where relevant cutting-edge research is pursued.

c) a framework for strategic planning in the knowledge economy.

d) the process of identifying technologies in the external business environment.

Q21. Which of the following statements best describes risk?

a. Uncertainty when looking to the future. b. Clarity in future decisions.

c. Uncertainty when looking at the past.d. Certain of not suffering harm/loss

Q22. Which factor is not normally considered in risk control?

A. Costb. Qualityc. Effortd. all the abovee. none of the above.

Q23. A political factor affecting international business activities would be----------------------------------

a. The general education level of a country's population.

b. A country's commonly used language

c. Religious beliefs.

d. The type of government.

Q24. Why Risk Management is Important? Pick the correct answer.

a. Minimizes threats, maximizes opportunities, and optimizes the achievement of project objectives.

b. Reduce the number of threats that materialize into problems and minimize the effects of those that do occur.

c. Failing to manage risk will result in more problems, higher benefits and a higher chance of project success.

d. Results in more opportunities being captured proactively and turned into positive benefits for the project.

Q25. Firm that operates internationally is able to-------------------------------------------------

a)earn a greater return from their skills and core competencies

b) realize location economies where they can be performed most efficiently

c)realize greater experience curve economies, which reduces the cost of production

d)All the above

Q26. By entering international business, a firm expects an improvement in----------------------

A. Marketing.

B. All spheres of marketing, operation, and finance simultaneously.

C. Any or all spheres of marketing, operation, and finance.

D. Finance only.

E. Operation only.

F. All the above

Q27. By having business in different countries, a firm reduces-----------------------------

A. credit risk.B. political risk.C. financial risk.

D. business risk.E. None of the above

Q28. Risk Management is ------------------------------------------------------

A. Holding monthly meetings to discuss risks to the business.

B. Making sure that a business's premises cannot be broken into.

C. The process of taking steps to minimize or eliminate the likely hood of certain events happening by reducing and managing risks.

D. Asking individual staff members what they think the biggest risks are.

Q29. What is the process for determining the types of risks to which a company is exposed called?

A.Risk assumptionB.Risk transference

C.Risk identificationD.Risk mitigation

Q30. An example of a political risk is -----------------------------------------------------------

A. expropriation of assets.B. adverse change in tax rules.

C. the opposition party being elected.D. both answers a and b are correct.

Q31.Give three examples of Non-Economic Political Risk Factors -----------------------------------------

Q32. Country risk analysis is important because it--------------------------------------------------------------------

a. can be used by MNCs as a screening device to avoid countries with excessive risk.

b. can be used by MNCs to monitor countries where the MNC is presently engaged in international business.

c. can be used to improve the analysis used to make long-term investing or financing decisions.

d. all the above.

Q33. Which of the following is not an example of political risk?

a. The Japanese government requires an MNC's subsidiary to install exercise rooms for its employees.

b. The Swiss government requires an MNC's subsidiary to install filters in its manufacturing plants to reduce pollution.

c. Country X, considered for expansion, frequently goes to war with is neighbors.

d. Country Y's government has recently taken of the subsidiary of one of your competitors, another US-based MNC.

e. All of the above are examples of political risk.

Q34. Types of country risks are -------------------------------------

a. Sovereign Risk - possibility of financial troubles "a foreign government defaulting on its sovereign debt"

b. Economic Risk- a factor of the economic health of a nation.

c. Political Risk- mainly associated with the losses resulting due to the political situations of a country.

d. All the above

e. None of the above

Q35. The Country Risk Classification takes place through the application of a methodology-------------------------------------

A) A quantitative model - The Country Risk Assessment Model (CRAM) produces a quantitative assessment of country credit risk.

B) A qualitative assessment of the CRAM results by country risk experts to integrate factors not fully considered by the model.

C) All the above

D) None of the above.

Q36. Which of the following is the correct abbreviation of HRM?

a. Human Resource Managementb. Human Resourcefulness Management

c. Human Relation Managementd. Humanistic Relation Management

Q37. Human factor can be defined as------------------------------------------------------------

a. The entire concept of human behavior.

b. Interrelated Physiological, Psychological and Socio-ethical aspects of a human being.

c. Micro and macro issues of socioeconomic factors.

d. all the above.

e. None of the above

Q38. When would a company be more prone to utilize ethnocentric staffing?

a. To hire host-country nationals for positions in the company.

b. To staff the most important positions in foreign subsidiaries with expatriates.

c. So that the host-country nationals staff each foreign subsidiary.

d. To ensure the company's overall strategy is integrated across the globe.

Q39. Zach and Ethan are co-owners of a company that has an entirely integrated global strategy. They need to hire employees that will run their day-to-day activities. Which would be the best staffing strategy they should use?

a. Polycentric staffingb. Region centric staffing

c. Host-country nationals Staffingd. Geocentric staffing.

Q40. Helen enjoys working for her company as director of all their IT projects. Her firm considers her as one of their many expatriate employees. What does Helen be an expatriate employee denote?

a. Helen is involved in staffing the most important positions in foreign subsidiaries with expatriates from the company's home country.

b. Helen is an employee hired by a foreign company to work in her own country.

c. Helen is a citizen of one country but is working in another country for a company that is headquartered in a third country.

d. Helen is a citizen of the company's home country working in a foreign country.

Q41. Roberto is a citizen of Austria. He is working for a fabric company located in Peru. The fabric company is headquartered in New Zealand. What kind of employee is Roberto?

a. Expatriateb. Host-country national

c. Third-country nationald. Ethnocentric

Q42. Which of the following is consistent with region-centric staffing?

a. It is used by organizations that have a completely integrated global strategy.

b. It is used when an organization wants to hire expatriates.

c. It is truly a global approach to staffing.

d. Employees are hired and transferred within the region.

Q43A. The scope of international human resource management (IHRM) includes:

A. staff recruitment. B. staff development. C. compensation. D. all the above.

Q43B, To be effective in the international environment HRM policies----------------------------------

a. must reflect an international view.

b. must accommodate differences in management styles.

c. must focus on domestic issues.

d. must effectively transplant HRM policies and practices from the home country to all other offices.

Q44A. A major difference between domestic and international HRM is the result of----------------------------

a. increased complexities such as currency fluctuations, foreign HR policies and practices, and divergent labor laws.

b. the number of employees covered by the HR policies.

c. the ease with which employees adjust to new cultures.

d. the emergence of effective cross-border management styles.

Q44B. Global assignments in which employees are sent to understand global operations and are required to have intercultural understanding are called----------------------------------------------

a. strategic assignments.b. development assignments.

c. non-development assignments.d. managerial assignments.

Q45. The following are valid reasons for using an ethnocentric international staffing strategy, except--------------------

a. maintaining a unified corporate culture.

b. maintaining a diverse corporate culture.

c. lack of qualified managers in the host country.

d. maintaining tight control.

Q46. Which of the following factors is least likely to be directly related to the success of an expatriate assignment?

a. The personality of the expatriate.

b. The intentions of the expatriate.

c. The inability of the spouse to adjust.

d. The type of products produced by the organization.

Q47. Expatriate failure is best defined as---------------------------------------

a. a failure to recoup the costs of investment in an expatriate.

b. early return of the expatriate.

c. repatriation

d. re-assimilating the expatriate.

e. all the above

Q48A. The staffing policy in which all key management positions are filled by home country nationals is termed-----------

a. polycentric.b. ethnocentric.c. geocentric.d. multicentric.

Q48B.A factory that features unsafe working conditions, long hours, and/or low wages is a(n)---------------------------------

a. private sector workplace.b. public sector workplace.

c. activist.d. sweatshop.

Q49A.High labor costs in an overseas operation can require a focus on efficiency and on HRM practices aimed at improving----

a. employee performance.b. employee turnover.

c. selection processes.d. absenteeism rates.

Q49B. Which of the following describes an 'ethnocentric' approach to staffing?

a. Locals fill managerial positions in national subsidiaries.

b. Filling all key positions with parent country nationals.

c. Dividing operations into several geographical regions and freely transferring staff between each region.

d. Parent country nationals fill managerial positions at headquarters.

Q50A. The use of third-country nationals (TCNs) provides several advantages. Which of the following is NOT one of these advantages?

a. They take the organization away from criticism as ethnocentric.

b. They often have a cultural awareness which can be beneficial.

c. They are usually considerably cheaper

d. They have an adequate knowledge of home office goals and procedures.

Q50B. In international human resource management, communication in polycentric organizations is------------------

a. Totally connected in a network of subsidiaries and of subsidiaries with headquarters.

b. Little among subsidiaries and little between the subsidiaries and headquarters

c. From headquarters to local subsidiaries

d. Little between the subsidiaries and headquarters, medium to high among subsidiaries in regions

Q51A.In international human resource management, communication in ethnocentric organizations is---------------------------

a. Totally connected in a network of subsidiaries and of subsidiaries with headquarters.

b. Little among subsidiaries and little between the subsidiaries and headquarters

c. From headquarters to local subsidiaries

d. Little between the subsidiaries and headquarters, medium to high among subsidiaries in regions

Q51B. Which of the following factors is NOT related directly to the success of expatriate assignments?

a. The personality of expatriate employees

b. The intentions of expatriate employees

c. The incapability of the spouse to adjust to the new situation

d. The nature of products produced by the company.

Q52A.Which of the following is NOT an advantage of a geocentric approach to staffing for international businesses?

a. It uses human resources efficiently

b. It helps build a strong culture.

c. It is inexpensive to implement

d. It helps build a strong informal management network.

Q52B.What are Human Rights?

a. Special privileges awarded to criminals and prisoners

b. What the European Parliament decides is right.

c. Rights listed in the UN Declaration of Human Rights 1948

d. Rules designed to frustrate legal proceedings.

Q52C.Stakeholders are the individuals or groups who-----------------------------------------

a. Are the shareholders in key competitors

b. Determine the strategy of the organization.

c. Dominate the operational issues in the organization

d. Have an interest or concern in the activities of an organization.