Question 1

Amazon not only hosts third-party sellers,but the company also acts as a direct merchant itself.

Accepted Answer

Amazon not only hosts third-party sellers, but the company also acts as a direct merchant itself. Amazon buys and sells merchandise, ships products, and warehouses inventory.

Question 2

Typically,multinational companies (MNCs)are likely to use indirect controls to monitor performance on a monthly basis,whereas direct controls are used semiannually or annually.

Accepted Answer

Typically, multinational companies (MNCs) will use indirect controls to monitor performance on a monthly basis, whereas direct controls are used semiannually or annually. This dual approach often provides a company with effective control of its operations at a price that also is cost-effective.

Question 3

A legal system called codetermination requires workers and their managers to participate in the discussion of major decisions.

Accepted Answer

Codetermination is a legal system that requires workers and their managers to discuss major discussions. In Germany, managers focus more on productivity and quality of goods and services than on managing subordinates, which often translates into companies pursuing long-term approaches.

Question 4

From an external control standpoint,a multinational company (MNC)is likely to focus on the things that it does best.

Accepted Answer

From an internal control standpoint, a multinational company (MNC) will focus on the things that it does best. At the same time, of course, management wants to ensure that there is a market for the goods and services that it is offering.

Question 5

The Japanese make heavy use of a decision-making process called ringisei or decision making by consensus.

Accepted Answer

The Japanese make heavy use of a decision-making process called ringisei, or decision making by consensus. Under this system, any changes in procedures and routines, tactics, and even strategies of a firm are organized by those directly concerned with those changes.

Question 6

An assessment center is an evaluation tool that is used to evaluate employees.

Accepted Answer

An assessment center is an evaluation tool that is used to identify individuals with the potential to be selected for or promoted to higher-level positions. Used by large U.S. multinational companies (MNCs) for many years, these centers also are employed around the world.

Question 7

Concurrent engineering is a total quality management (TQM)technique which encourages designers,engineers,and product specialists to work independently to develop new products.

Accepted Answer

Concurrent engineering/interfunctional teams encourages designers, engineers, production specialists, and customers work together to develop new products. This approach involves all the necessary parties and overcomes what used to be an all-too-common procedure: The design people would tell the manufacturing group what to produce, and the latter would send the finished product to retail stores for sale to the customer.

Question 8

Efficient processes become increasingly important as diversification or differences between the parent and subsidiary increase.

Accepted Answer

Efficient processes become increasingly important as diversification or differences between the parent and subsidiary increase. This refers not only to specific products and services that may need to be tailored to geographic areas, but also to the socioeconomic, political, legal, and cultural environments in which the subsidiary exists.

Question 9

Direct controls use reports and other written forms of communication to control operations.

Accepted Answer

Indirect controls involve the use of reports and other written forms of communication to control operations. One of the most common examples is the use of monthly operating reports that are sent to the home office.

Question 10

The degree to which a manager is involved in the decision-making process depends only on the structure of a subsidiary.

Accepted Answer

The degree to which managers are involved in the decision-making process depends on the structure of the subsidiaries and the locus of decision making. If decision making is centralized, most important decisions are made at the top; if decision making is decentralized, decisions are delegated to operating personnel.

Question 11

Financial performance evaluation of a foreign subsidiary or affiliate is usually based on profit and return on investment.

Accepted Answer

Financial performance evaluation of a foreign subsidiary or affiliate is usually based on profit and loss, and return on investment. Profit and loss (P&L) is the amount remaining after all expenses are deducted from total revenues.

Question 12

Direct controls are particularly important in international management because of the great expense associated with indirect methods.

Accepted Answer

Indirect controls are particularly important in international management because of the great expense associated with direct methods of control. Typically, multinational companies (MNCs) will use indirect controls to monitor performance on a monthly basis, whereas direct controls are used semiannually or annually.

Question 13

Surprisingly,one of the least common approaches to personnel performance evaluation is the periodic appraisal of work performance.

Accepted Answer

One of the most common approaches to personnel performance evaluation is the periodic appraisal of work performance. Although the objective is similar from country to country, how performance appraisals are done differs.

Question 14

While Alibaba's scale of operations is capital intensive,Amazon's approach allows for extra financial flexibility,as it does not need to build,staff,and maintain regional warehouses.

Accepted Answer

While Amazon's scale of operations is capital intensive, Alibaba's approach allows for extra financial flexibility, as it does not need to build, staff, and maintain regional warehouses. One major downside, however, is that Alibaba gives up control over the shipping and distribution operations of its merchants, meaning that mistakes by third-party businesses could reflect negatively on the company as a whole.

Question 15

The approaches to control employed by international managers are dictated by a multinational company's (MNC's)philosophy of control,the economic environment in which the overseas unit is operating,and the needs and desires of the managerial personnel who staff the unit.

Accepted Answer

The approaches to control employed by international managers are dictated by the multinational company's (MNC's) philosophy of control, the economic environment in which the overseas unit is operating, and the needs and desires of the managerial personnel who staff the unit. Working within control parameters, MNCs will structure their processes so that they are as efficient and effective as possible.

Question 16

In domestic situations,when competition increases and profit margins are driven down,home-office management is likely to seek to standardize product and marketing decisions to reduce cost and maintain profitability.

Accepted Answer

In international situations, when competition increases and profit margins are driven down, home-office management often seeks to standardize product and marketing decisions to reduce cost and maintain profitability. Many upper-level operating decisions are made by central management and merely implemented by the subsidiary, although, in some instances, companies still opt to decentralize operations if product diversification is necessary.

Question 17

A quality control circle is a group of workers who meet on a regular basis to discuss ways of improving the quality of work.

Accepted Answer

A quality control circle (QCC) is a group of workers who meet on a regular basis to discuss ways of improving the quality of work. This approach has helped many multinational companies (MNCs) improve the quality of their goods and services dramatically.

Question 18

Although U.S.multinationals do not encourage lengthy stays in foreign management positions,European multinational companies (MNCs)often regard these positions as stepping-stones to higher offices.

Accepted Answer

Although U.S. multinational companies (MNCs) do not encourage lengthy stays in foreign management positions, European multinational companies (MNCs) often regard these positions as stepping-stones to higher offices. Control in European MNCs requires a larger cadre of capable expatriate managers who are willing to spend long periods of time abroad.

Question 19

As a total quality management (TQM)technique,rewards and recognition tend to be effective universally.

Accepted Answer

The rewards and recognition approaches that work well in one country may be ineffective in another. For example, individual recognition in the U.S. may be appropriate and valued by workers, but in Japan, group rewards are more appropriate as Japanese do not like to be singled out for personal praise.

Question 20

A key difference between how French and Danish managers view time is that Danish managers do not value time as much as their counterparts.

Accepted Answer

The French do not value time as much as the Danes. The French want to ensure that the best alternative was put into action, whereas the Danes want to act first and take advantage of opportunities.

Quiz 11: Management Decision and Control