Deck 14: The Future of International Management

Question 1

A large majority of the world's population has benefited as the global economy has grown dramatically in recent years.

Answer 1

False

Question 2

Firms that are innovative in packaging products, building brands, and developing new markets are generating downstream innovation.

Answer 2

False

Question 3

Entrepreneurs are confined to niches in domestic economies, with the real economic impact coming from large multinational companies that produce a majority of the world's wealth and products.

Answer 3

False

Question 4

The United States has experienced a largely uninterrupted economic expansion from the 1960s until recently.

Question 5

A low level of entrepreneurship in a country implies that the country does not have potentially innovative employees, or has employees who will resist innovation and empowerment.

Question 6

In management, entrepreneurship is defined as value-creation activities by individuals, either in creating a new enterprise or building a new business or product line within an existing organization.

Question 7

Experts in corporate sustainability help a firm lower its energy consumption and minimize its negative impact on the environment.

Question 8

Corporate entrepreneurship is a concept that has not been widely supported.

Question 9

Evidence suggests that entrepreneurial firms excel at creating new jobs.

Question 10

Businesses that are not diversified will only have to make choices about a functional-level strategy because they are in only one business.

Question 11

For entrepreneurial ventures that need to compete internationally, it is important that they have more tangible assets than intangible assets.

Question 12

Typically, an entrepreneurial firm that is international from its beginning will pursue a focus-differentiation business strategy.

Question 13

Social and political institutions significantly shape the attitudes and behavior of transnational entrepreneurs.

Question 14

A turnkey firm would buy other firms' technology, such as computers, communication devices, sensors, and operating systems, and use this technology to put together its own products.

Question 15

Trade between corporations or individuals takes place when both sides are made better off by the exchange.

Question 16

For potential entrepreneurs, the decision about starting a business is influenced by additional characteristics within the existing business environment, which are referred to as entrepreneurial framework conditions.

Question 17

The world's poorest billion people who have largely missed the economic progress that has come from globalization over the last 25 years are known as the bottom billion.

Question 18

In the second stage of development, the economy shifts away from manufacturing toward services.

Question 19

Benchmarking involves comparing a firm's activities against the best in the industry.

Question 20

Upstream innovation is a firm's ability to use research and basic product components and package them together to create a new, salable product or service.

Question 21

_____ probably account for most farms and small manufacturing and service firms in the first stage of development.

A) Sole proprietorships
B) Partnerships
C) Corporations
D) Limited liability companies

Question 22

Which of the following statements about entrepreneurs is false?

A) The role of entrepreneurs is critical to the prosperity of the global economy.
B) The role of entrepreneurs is critical for the creation of needed innovations.
C) Entrepreneurs are confined to niches in domestic economies.
D) Entrepreneurs have demonstrated their importance creating important new goods that have aided in the global economy's development.

Question 23

Which of the following statements about the second stage of development entrepreneurship is true?

A) The economy remains focused on small-scale household production.
B) In this stage, entrepreneurial activity does not decline.
C) This stage is marked by decreasing rates of entrepreneurship, and self-employment actually declines.
D) Sole proprietorships probably account for most farms and small manufacturing and service firms in this stage.

Question 24

The EU demands that even the poorest among new EU members contribute to the European foreign aid agency, EuropeAid.

Question 25

Countries like Uganda, Peru, Ecuador, and several lesser-developed African countries all have high levels of entrepreneurial activity, often called:

A) necessity entrepreneurship.
B) opportunity entrepreneurship.
C) ethnic entrepreneurship.
D) macroentrepreneurship.

Question 26

Contrary to popular assumptions, the poor can constitute a very profitable market-especially if multinational enterprises change their business models.

Question 27

According to economist Joseph Schumpeter:

A) entrepreneurs are a nonessential issue to business.
B) entrepreneurs are the bearers (not creators) of economic change and growth.
C) entrepreneurs and entrepreneurial firms will develop if the economy and its institutions are strong enough.
D) entrepreneurship happens naturally as a result of institutions and is not an economic factor to focus on.

Question 28

All of the following are observations made by Joseph Schumpeter EXCEPT:

A) entrepreneurs happens naturally as a result of institutions.
B) entrepreneurs are the bearers (not creators) of economic change and growth.
C) entrepreneurs help to bring new inventions and innovations to the market.
D) entrepreneurs are often not the prime movers behind many innovations.

Question 29

What is the occupational definition of entrepreneurship?

A) The seizing of economic opportunities and efficiencies.
B) Happening naturally as a result of institutions.
C) Owning a business.
D) Value-creation activities only.

Question 30

In most classical economics:

A) entrepreneurship is an economic factor to focus on.
B) economists see entrepreneurs as essential to business.
C) entrepreneurs help to bring new inventions and innovations to the market.
D) entrepreneurs will develop if the economy and its institutions are strong enough.

Question 31

Entrepreneurship is broadly conceptualized by management scholars as:

A) something that is not an economic factor to focus on.
B) something that happens naturally as a result of institutions.
C) bringing new innovations to the market, but entrepreneurs are not the prime movers behind many innovations.
D) value-creation activities and the seizing of economic opportunities and efficiencies.

Question 32

The "bottom of the pyramid" is not a viable market, and accounts for hardly any economic activity in developing countries.

Question 33

According to the efficient market hypothesis, asset prices are always at the correct price.

Question 34

Which of the following statements about international management is false?

A) The trend of people working in multinational enterprises, whether at home or abroad, has accelerated in recent years with the establishment of the WTO and its free trade policies.
B) Issues such as entrepreneurship, the environment, and the bottom billion will affect international managers and their global businesses increasingly.
C) By exponentially expanding international trade since the end of World War II, the world has become much wealthier.
D) The increase in oil and commodity prices and turmoil in numerous asset markets is not linked to increasing demand and prosperity in emerging economies, but to poverty.

Question 35

The bottom of the pyramid is characterized by low margins, low unit sales, and low inventory turnover.

Question 36

A new focus has arisen at the crossroads of behavioral entrepreneurship and the dynamic perspective of occupational entrepreneurship. Which of the following statements do not apply here?

A) The entrepreneur helps to bring new inventions and innovations to the market, but is often not the prime mover behind many innovations.
B) It is a perspective that considers venture creation and innovation to be the hallmark of entrepreneurship.
C) The entrepreneur is someone who specializes in making judgmental decisions about the coordination and deployment of scarce resources.
D) It emphasizes that the entrepreneur is an individual and that entrepreneurial decisions are not simply a routine application of standard rules and production functions.

Question 37

Which of the following statements about entrepreneurial framework conditions is false?

A) These conditions comprise a country's capacity to encourage start-ups.
B) They encourage the motivations of those who wish to go into business for themselves.
C) When successfully combined, these conditions will lead to new businesses.
D) They will increase innovation and decrease competition within the marketplace.

Question 38

For potential entrepreneurs, the decision about starting a business is influenced by additional characteristics within the existing business environment. These are referred to as:

A) necessity entrepreneurship facets.
B) entrepreneurial framework conditions.
C) behavioral notions of entrepreneurship.
D) dynamic perspectives of occupational entrepreneurship.

Question 39

The third stage of development:

A) sees businesses moving from family-based entrepreneurial capitalism to more Big Unit and managerial capitalism.
B) is marked by a return to increasing entrepreneurial activity.
C) is dominated by family-run farms and household businesses and is marked by high rates of non-agricultural self-employment.
D) is marked by decreasing rates of entrepreneurship.

Question 40

Which of the following statements about the behavioral notion of entrepreneurship is true?

A) Entrepreneurs in the behavioral sense necessarily need to be business owners.
B) Entrepreneurs can create significant value within a large organization, including government agencies and nonprofits.
C) Entrepreneurs are often not the prime movers behind many innovations, at least not in any systematic way.
D) Entrepreneurial decisions are a routine application of standard rules and production functions.

Question 41

_____ is a firm's ability to use research and basic product components and package them together to create a new, salable product or service.

A) Informal innovation
B) Research innovation
C) Downstream innovation
D) Upstream innovation

Question 42

Write a short note on entrepreneurs.

Question 43

All organizations have key employees who are internal _____ that influence others, and who are usually veterans of the firm and particularly important in knowledge-based organizations.

A) opinion leaders
B) born globals
C) business decision makers
D) surrogate buyers

Question 44

Write a short note on a renewable energy certificates.

Question 45

What are the goals set by the United Nations for eliminating extreme poverty?

Question 46

How can the poor can constitute a profitable market?

Question 47

Research and development, basic science, and university-company partnerships are all part of:

A) turnkey innovation.
B) upstream innovation.
C) downstream innovation.
D) lateral innovation.

Question 48

Developmental economists distinguish three major stages of development that business people need to be aware of as they seek to do business overseas. What are they?

Question 49

Integrating technologies into a firm's production and development systems to facilitate the creation and delivery of a product to customers or service to employees is:

A) benchmarking.
B) upstream innovation.
C) turnkey innovation.
D) technology indigenization.

Question 50

What are the steps that a firm needs to take to implement corporate entrepreneurship?

Question 51

Which of the following highlights the critical role of entrepreneurs as agents who accelerate the generation, application, and spread of innovative ideas and economic growth?

A) Economic Cooperation Organization
B) World Trade Organization
C) Organization for Economic Cooperation and Development
D) International Monetary Fund

Question 52

_____ involves comparing a firm's activities against the best in the industry.

A) Leapfrogging
B) Process management
C) Reengineering
D) Benchmarking

Question 53

Write a short note on technology indigenization.

Question 54

According to the text, entrepreneurial firms that are started as international firms are:

A) born globals.
B) innate exporters.
C) high technology start-ups.
D) leapfrogging.

Question 55

Which of the following is an example of a tangible asset?

A) Patent
B) Equipment
C) Copyright
D) License

Question 56

Many successful entrepreneurial firms do not develop their own technology; rather, they combine and distribute inventions and innovations generated by others upstream. This is known as:

A) turnkey innovation.
B) technology indigenization.
C) benchmarking.
D) reengineering.

Question 57

_____ refers to mature firms acting more like small start-up firms, taking greater risks and reducing their bureaucracy.

A) Necessity-based entrepreneurship
B) Opportunity-based entrepreneurship
C) Corporate entrepreneurship
D) Start-up entrepreneurship