Ch6

1- Ethical strategies are the accepted principles of right or wrong governing the conduct of businesspeople.
False
2- An ethical strategy is a strategy, or course of action, that does not violate the accepted principles of right
or wrong governing the conduct of businesspeople. True
3- What is considered normal business practice in one country may be considered unethical in other
countries. True
4- International businesses cannot gain economic advantages by making payments to corrupt government
officials. False
5- Facilitating payments are also known as speed money or grease payments. True
6- Social responsibility refers to the idea that businesspeople should favor decisions that have both good
economic and social consequences. True
7- The ethical obligations of a multinational corporation toward employment conditions, human rights,
environmental pollution, and the use of power are always clear-cut. False
9- The ethical obligations of a multinational corporation toward employment conditions, human rights,
corruption, environmental pollution, and the use of power are not always clear-cut. True
10- Ethical dilemmas are situations in which none of the available alternatives seems ethically acceptable.
True
11- Ethical dilemmas exist because many real-world decisions involve first-, second-, and third- order
consequences that are hard to quantify. True
12- Societal business ethics are divorced from personal ethics. False
13- Societal business ethics are not divorced from personal ethics. True
14- An individual with a strong sense of personal ethics is less likely to behave in an unethical manner in a
business setting. True
15- A firm's organizational culture refers to the values and norms that are shared among employees of an
organization. True
16- Employees in a business often take their cue from business leaders, and if those leaders do not behave in
an ethical manner, they might not either. True
17- Building an organization culture that places a high value on ethical behavior requires incentive and
reward systems. True
18- Unrealistic performance expectations encourage managers to act in an ethical manner. False
MCQ
1- The Convention on Combating Bribery of Foreign Public Officials in International Business
Transactions excludes:
A. bribes made to secure contracts that would otherwise not be secured.
B. Grease payments to gain exclusive preferential treatment.
C. facilitating payments made to expedite routine government action.
D. Payments to government officials for special privileges.

Page 1 By: Michael Yousry

2- The idea that businesspeople should consider the social consequences of economic actions when
making business decisions and that there should be a presumption in favor of decisions that have both
good economic and social consequences is known as:
A. Moral relativism. B. Noblesse oblige.
C. Ethical dilemma. D. Social responsibility.
3- A situation in which none of the available alternatives seems morally acceptable is called:
A. An ethical dilemma. B. Noblesse oblige.
C. The tragedy of the commons. D. The free rider problem.
4- Expatriate managers may experience more than the usual degree of pressure to violate their
personal ethics because of all of the following reasons EXCEPT:
A. they are away from their ordinary social context and supporting culture.
B. they are psychologically and geographically closer to the parent company.
C. they may be based in a culture that does not place the same value on ethical norms important in the
manager's home country.
D. they may be surrounded by local employees who have less rigorous ethical standards.
5- Which of the following refers to the values and norms that the employees of an organization share?
A. Vision statement B. Cultural relativism
C. Organization culture D. Power orientation
-----------------------------------------------------------------------------
Ch7
1- An expatriate manager is a citizen of one country who is working abroad in one of the firm's subsidiaries.
True
2- HRM professionals have a critically important strategic role. True
3- An organization's norms and value systems are known as its corporate culture. True
4- The most attractive staffing policy is the ethnocentric approach. False
5- A firm with an ethnocentric staffing policy will fill all key management positions with parent-country
nationals. True
6- Cultural myopia refers to a firm's failure to understand host-country cultural differences that require
different approaches to marketing and management. True
7- A firm following a polycentric approach to staffing believes that the host country lacks qualified
individuals to manage subsidiaries. False
8- A firm that adopts a polycentric approach to staffing is likely to suffer from cultural myopia. False
9- Firms may choose an ethnocentric approach to staffing as opposed to a polycentric approach because of
the cost savings it promotes. False
10- A geocentric staffing policy seeks the best people for key jobs throughout the organization, regardless of
nationality. True
11- A geocentric approach tends to weaken local responsiveness. False
12- Many firms adopt a geocentric policy toward staffing because it is a relatively inexpensive staffing
policy. False
13- An ethnocentric approach is compatible with both global standardization and transnational strategies.
False

Page 2 By: Michael Yousry

14- Expatriate failure refers to a manager's failure to understand host-country cultural norms and values,
leading to ineffective work. False
15- An executive who performs well in a domestic setting may not be able to adapt to managing in a
different cultural setting. True
16- An expatriate needs to have language fluency to show willingness to communicate. False
17- The ability to understand why people of other countries behave the way they do is perceptual ability.
True
18- Expatriate managers who have perceptual ability tend to treat foreign nationals as if they were home-
country nationals. True
19- Cultural toughness refers to the relationship between the country of assignment and how well an
expatriate adjusts to a particular posting. True
20- A manager might be sent on several foreign postings over a number of years to build his/her cross-
cultural sensitivity and experience as part of a management development program. True
21- Historically, most international businesses have been more concerned with training than with
management development . False
22- English is considered the language of world business. True
23- Where an expatriate community exists, firms often devote lesser effort to ensuring that the new
expatriate family is quickly integrated into that group. False
24- Where an expatriate community exists, firms often devote considerable effort to ensuring the new
expatriate family is quickly integrated into that group. True
25- Firms pursuing a transnational strategy increasingly are using management development as a strategic
tool. True
26- Bringing managers together in one location for extended periods and rotating them through different
jobs in several countries helps the firm build a formal management network. False
27- Bringing managers together in one location for extended periods and rotating them through different
jobs in several countries helps the firm build an informal management network. True
28- A firm's performance appraisal systems are an important element of its control systems. True
29- Most expatriates believe that more weight should be given to an on-site manager's appraisal than to an
off-site manager's appraisal. True
30- An expatriate's base salary normally varies from the base salary for a similar position in the home
country. False
31- Labor unions generally prefer it if an international business keeps highly skilled tasks in its home
country and farms out only low-skilled tasks to foreign plants. False
32- Training and development programs include re-integrating expatriates back into work life within their
home country organization. True

Page 3 By: Michael Yousry

33- From a strategic perspective, the key issue in international labor relations is the degree to which
organized labor can limit the choices of an international business. True
34- A global mindset may be the fundamental attribute of a global manager just cognitive complexity. False
35- After selecting a manager for a position, training and development programs should be implemented.
True
MCQ
1- A Japanese firm prefers expatriate Japanese managers to head its foreign operations because these
managers have been socialized into the firm while employed in Japan. This indicates that the firm:
A. believes that such managers cannot progress beyond middle-manager positions in their parent company.
B. follows an ethnocentric staffing policy to maintain a unified corporate culture.
C. is trying to create value by transferring core competencies to a foreign operation.
D. requires host-country nationals to be recruited to manage subsidiaries.
2- Cultural myopia refers to a firm's failure to:
A. adapt to certain ethnocentric cultures. B. Act confidently in host-countries.
C. understands host-country cultural differences. D. prevent gender discrimination within the firm
3- A firm using a polycentric staffing policy:
A. is less likely to suffer from cultural myopia.
B. seeks the best people for key jobs throughout the organization, regardless of nationality.
C. will most likely follow an ethnocentric strategy.
D. is likely to have improved communication between host-country managers and parent-country managers.
4- What is the most important advantage of using a geocentric staffing policy?
A. It enables the firm to build a cadre of international executives who feel at home working in a
number of cultures.
B. It may be less expensive to implement than other policies, reducing the costs of value creation.
C. The higher pay managers on an international fast track enjoy is a source of inspiration within a firm.
D. It reduces the need for futile and time consuming documentation.
5- Which of the following staffing approaches will be most effective for a firm that is pursuing a
transnational strategy?
A. A polycentric staffing policy B. An ethnocentric staffing policy
C. A geocentric staffing policy D. An internal staffing policy
6- A Geocentric staffing policy _____.
A. requires host-country nationals to be recruited to manage subsidiaries, while parent-country nationals
occupy key positions at corporate headquarters
B. leads to ineffective use of human resources C. requires extensive documentation
D. is compatible with both international and localization strategy.
7- Expatriate failure refers to:
A. expatriates who follow host-country norms instead of their home-country norms.
B. The inability of expatriate managers to treat foreign nationals as if they were home-country nationals.
C. The premature return of an expatriate manager to his or her home-country.
D. The ethical drawbacks of the ethnocentric staffing approach.
8- Which of the following statements is true regarding management development?
A. Historically, most international businesses have been more concerned with management development
than with training.
B. Management development facilitates the creation of an informal network for sharing knowledge
within the multinational enterprise.

Page 4 By: Michael Yousry

C. Management development refers to specific training efforts to prepare home-country nationals for foreign
postings.
D. Typically, management development programs use standard psychological tests to select managers for
specific foreign postings.
9- Practical training is:
A. provided to foster an appreciation for the host country's culture.
B. aimed at helping expatriates improve their communication skills.
C. aimed at helping expatriate managers to build relationships in the host-country.
D. aimed at helping the expatriate manager and family ease themselves into day-to-day life in the host
country.
10- Management development programs aim to:
A. facilitates an ethnocentric approach to staffing. B. reduces job rotations of managers.
C. builds a formal management network. D. builds a unifying corporate culture.
11- Bringing managers together in one location for extended periods and rotating them through
different jobs in several countries is a part of:
A. The ethnocentric approach. B. The global standardization strategy.
C. Cultural toughness programs. D. Management development programs.
12- Which of the following is a concern of organized labor regarding multinational firms?
A. A company can counter a union's bargaining power with the power to move production to another
country.
B. An international business will keep low-skilled tasks in its home country and farm out only highly skilled
tasks to foreign plants.
C. An international business can attempt to import employment practices and contractual agreements from
its host-country.
D. A multinational company is more likely to receive government support in the case of hostile labor
relations.
13- Which of the following is true regarding approaches to labor relations?
A. International businesses use mostly similar approaches to international labor relations.
B. The trend is toward greater decentralized control of international labor relations.
C. Historically, most international businesses have centralized the labor relations function.
D. Many firms are now using the threat to move production to another country in their negotiations
with unions.
Ch8
1- The set of choices the firm offers to its targeted markets is known as the marketing mix. True
2- The marketing mix is comprised of product attributes, distribution strategy, communication strategy, and
pricing strategy. True
3- Once a company has set up its marketing plan, they never need to change it. False
4- The process of identifying distinct groups of consumers whose purchasing behavior differs from others in
important ways is known as consumer behavior analysis. False

Page 5 By: Michael Yousry

5- Market segmentation refers to identifying distinct groups of consumers whose purchasing behavior differs
from others in important ways. True
6- Markets can be segmented in only one way: by socio-cultural factors. False
7- Markets can be segmented in numerous ways: by geography, demography sociocultural factors
Psychological factors. True
8- The goal of market segmentation is to optimize the fit between the purchasing behavior of consumers in a
given segment and the marketing mix, thereby maximizing sales to that segment. True
9- The structure of market segments may differ significantly from country to country. True
10- Products sell well when their attributes match consumer needs. True
11- Firms based in less-developed nations tend to build a lot of extra performance attributes into their
products. False
12- Consumers in the most developed countries are typically willing to sacrifice their preferred product
attributes for lower prices. False
13- Differences in technical standards constrain the globalization of markets. True
14- Local marketing is the marketing of products or services outside of your brand's domestic audience.
False - International marketing
15- Marketing mix is the elements of a business's marketing that are designed to meet the needs of its
customers. The four elements are often called 4 'Ps' - price, product, promotion and place. True
16- Product is the amount charged by the business for providing a product to the consumer. False - price
17- Promotion represents the nature of the item provided by the business to the consumer. False – product
18- Price is the efforts made by the business to retain and attract consumers by drawing attention to its
product. False - promotion
19- Place is the means by which the product will be distributed at a time and location convenient to the
consumer. True
20- Distribution strategies Plans for the process by which products reach their final consumers. True
21- The current consensus is that while the world is moving towards global markets, global standardization
is possible. False
22- There are three essential aspects that must be studied before entering the global market, customers,
government, and competitors. True
23- Diversity of individuals is very important in terms of Language and their acceptance of the industry and
the product that offer to them. False -culture of individuals
24- Governments can create subsidies, taxing the public and giving the money to an industry, or tariffs,
adding taxes to foreign products to lift prices and make domestic products more appealing. True
25- In addition to lower prices and greater choice, government intervention cannot also be used to increase
the efficiency of firms within the market. False - can also be used

Page 6 By: Michael Yousry

26- There are three essential aspects that must be studied before entering the global market, customers,
government, and competitors. True
27- When we analysis competitors we should follow 4 steps: Identify competitors, Gather information about
competitors, Analyze competitors' strengths and weaknesses and Determine competitive advantage. True
28- in a competitive marketplace, businesses should not try to create new and improved products at lower
prices than their competitors. False
29- It is necessary to have a unique marketing mix to attract a specific segment in a particular country that is
different from the other. True
30- Marketing mix can be segmented by geography, demography, socio-cultural factors, and psychological
factors. False -Market segmentation.
31- The goal of market segmentation is to identify the group of people most likely to become customers.
True
32- Determinant attributes product or service features that are important to the buyer and on which
competing brands or stores are perceived to differ. True
33- Product and Technical Standards, National differences give companies freedom to tailor the appropriate
marketing mix to each country. False -can force companies
34- Distribution strategy means when the retail sector is highly fragmented and diversified, a long channel
will be beneficial. True
35- Communicating product attributes to potential customers is a critical component of the marketing
segmentation. False -marketing mix
36- The communication channels available to the company include: direct sale, Sales promotion, direct
marketing and Advertising. True

37- Cultural barriers, It can be difficult to communicate messages across different cultures. True
MCQ
1- Which of the following is one of the four elements that constitute a firm's marketing mix?
A. Inventory accounting B. Product reengineering
C. Reverse engineering D. Distribution strategy
2- The set of choices the firm offers to its targeted market is known as the ____.
A. marketing mix B. marketing concept
C. marketing strategy D. market promotion
3- The identification of distinct groups of consumers whose purchasing behavior differs from others in
important ways is known as ____.
A. market segmentation B. market penetration
C. diversification strategy D. differentiation
4- Consumers in highly developed countries value ____ as compared to their counterparts in less
developed nations.

Page 7 By: Michael Yousry

A. product price B. product reliability
C. product attributes D. product value
5- The means a firm chooses for delivering the product to the consumer is its ____.
A. communication strategy B. segmentation strategy
C. product attributes D. distribution strategy
6- The way a product is delivered is determined by:
A. The firm's entry strategy. B. The firm's product positioning.
C. The target market. D. The market segments.
-----------------------------------------------------------------------------------------

Ch9
A strategic alliance involves a contractual agreement between two or more enterprises stipulating that the
involved parties will cooperate in a certain way for a certain time to achieve a common purpose.
These are six different ways to enter a foreign market:
1- Exporting – a common first step for many manufacturing firms
Is the sale of products from one country to another, according to a recognized system, laws
and regulations that support import by consuming countries and export by exporting countries.

2- Turnkey projects - the contractor handles every detail of the project for a foreign client, including the
training of operating personnel

3- Licensing - a licensor grants the rights to intangible property to the licensee for a specified time period,
and in return, receives a royalty fee from the licensee

4- Franchising - a specialized form of licensing in which the franchisor not only sells intangible property to
the franchisee, but also insists that the franchisee agree to abide by strict rules as to how it does business

5- Joint ventures with a host country firm - a firm that is jointly owned by two or more otherwise
independent firms

6- Wholly owned subsidiary - the firm owns 100 percent of the stock / set up a new operation / acquire an
established firm

Quiz 1

1- Which of the following is a consequence of globalization?

a. Decreasing interdependence between national economies

b. Differentiation of material culture

c. Increasing outsourcing of services d. Increase in barriers to cross-border trade

2- Since the collapse of communism at the end of the 1980s, the erstwhile communist nations have
transformed their economies by globalizing their markets. This involves _____.

a. regulating markets b. privatizing state-owned enterprises

c. reducing foreign investment d. decreasing competition

Page 8 By: Michael Yousry

3- The ______ is primarily responsible for policing the world trading system and making sure nation-
states adhere to the rules laid down in trade treaties signed by member states.

a. International Development Association b. World Trade Organization

c. World Bank d. International Court of justice

4- The World Trade Organization promotes _____.

a. infrastructural development in poor nations through low-interest loans

b. regulation of national economies

c. lowering of barriers to cross-border trade and investment

d. state ownership of major enterprises

5- _____ occurs when a firm exports goods or services to consumers in another country.

a. International trade b. foreign direct investment

c. Inward investment d. Outsourcing

6- The shift toward a more integrated and interdependent world economy is referred to as globalization.
True

7- The most global markets currently are markets for consumer products. False

8- Outsourcing is a process that is limited to manufacturing enterprises. False

9- Low-cost global communications networks such as the World Wide Web are helping to create electronic
global marketplaces. True

10- According to critics of globalization, today's interdependent global economy limits a nation's national
sovereignty. True

Quiz 2

1- Market makers are the financial service companies that connect investors and borrowers. Those who want
to invest money include corporations with surplus cash, individuals, and non-bank financial institutions.
True

2- Each pound now buys fewer dollars than at the start of the day. The dollar has appreciated, and the pound
has depreciated. True

3- The cost of capital is the price of borrowing money, which is the rate of return that borrowers must pay
investors. True

4- The foreign exchange market is a market for converting the currency of one country into that of another
country. True

5- The foreign exchange market serves two main functions. The first is to convert the currency of one
country into the currency of another. True

Page 9 By: Michael Yousry