Question 1

If the Lincoln Log Construction Co. (based in Chicago)built an assembly plant for General Motors in Nigeria, the project would be classified as

Accepted Answer

An overseas project is one executed in a foreign country for a native firm (a Swedish company building a truck factory in the United States for their native company).

Question 2

Exchange rates, inflation, and education level of the workforce are examples of which of the following environmental factors?

Accepted Answer

A faltering economy may indicate fewer sources of capital funding.For example, changes in protectionist strategies of a host country, such as import quotas and tariffs, can quickly alter the viability of projects.

Question 3

American project managers have earned a reputation abroad for being very good at understanding technology but not good at understanding

Accepted Answer

Americans are often criticized for being parochial; that is, they view the world solely through their own eyes and perspectives.People with a parochial perspective do not recognize that other people have different ways of living and working effectively.

Question 4

Communication difficulties due to language differences are examples of which of the following environmental factors?

Accepted Answer

Communication problems-because of language differences-often become a major problem in carrying out even simple tasks.Although the use of translators can help tremendously, their use does not solve the communication problems completely because something is lost in translation.

Question 5

McDonald's is creating a multinational distribution system for all of its foreign and domestic subsidiaries.The project manager is from the corporate headquarters and he manages teams from each of the countries involved.The project would be classified as

Accepted Answer

A global project consists of teams formed from professionals spanning multiple countries, continents, and cultures with their work integrated for the entire enterprise (e.g., multinational enterprise developing a global distribution system).

Question 6

Culture is a concept that encompasses all of the following EXCEPT

Accepted Answer

Culture is defined as a system of shared norms, beliefs, values, and customs that bind people together, creating shared meaning and a unique identity.

Question 7

In this culture, it is important never to display feelings of superiority because this makes others feel inferior, mutual respect is expected at all times, and a lot gets done by going through administrative channels.

Accepted Answer

When working in an Arab culture, mutual respect is expected at all times.It is important never to display feelings of superiority because this makes others feel inferior.In addition, a lot of what gets done is a result of going through administration channels in the country.

Question 8

Needs for a project could include telecommunications, transportation, power, and availability of technically skilled talent.These are examples of which of the following environmental factors?

Accepted Answer

Infrastructure needs for a project could be communication, transportation, power, technology, and education systems.For example, developing an electric steel plant to be near a major market requires a reliable supply of electric power.

Question 9

Which of the following is NOT a potential advantage of managing international projects?

Accepted Answer

Some advantages of managing international projects include increased income, increased responsibilities, career opportunities, foreign travel, and new life-time friends.

Question 10

In this culture, preference is given to friends when hiring, contracting, procuring and sharing business opportunities.Family is also very important and trustworthiness is often gauged by the level of loyalty and attention one devotes to their family.

Accepted Answer

The significance of personal relationships has created a compadre system in which Mexicans are obligated to give preference to relatives and friends when hiring, contracting, procuring, and sharing business opportunities.Because family is all-important to Mexicans, a good way for developing a personal relationship is exchanging information about each other's family.Mexicans will often gauge people's trustworthiness by the loyalty and attention they devote to their family.

Question 11

The growing presence of crime resulting from the Russian Mafia has discouraged many foreign firms from setting up operations in the former Soviet Union.This is an example of which of the following environmental factors?

Accepted Answer

The growing presence of the Russian Mafia has discouraged many foreign firms from setting up operations in the former Soviet Union.Kidnapping of American professionals is also a very real threat in many parts of the world.

Question 12

An information systems specialist reported that his performance on a project in Northern Sweden declined due to sleep deprivation during the summer months in which there were 20 hours of daylight each day.This is an example of which of the following environmental factors?

Accepted Answer

Geography does not just affect outdoor projects.It can have an indirect effect on "indoor" projects.For example, one information systems specialist reported that his performance on a project in Northern Sweden declined due to sleep deprivation.He attributed his problems to the 20 hours of daylight this part of the world experiences during summer months.

Question 13

Government corruption and political stability are examples of which of the following environmental factors?

Accepted Answer

Project managers should operate within the laws and regulations of the host country.Political stability and local laws strongly influence how projects will be implemented.Government corruption is also a very real part of international business.

Question 14

As a response to the events of September 11, 2001, the moving of personnel, materials, and equipment across international borders created border congestion with increased costs and time.This was a result of which of the following environmental factors?

Accepted Answer

Another real cost associated with international terrorism is the ease of commerce across borders.Heightened security measures have created border congestions that have expanded the time and cost of moving personnel, materials, and equipment across countries.These constraints need to be factored into the budget and schedule of projects.

Question 15

Which of the following is NOT a potential negative outcome for an international project manager?

Accepted Answer

Project managers typically face a difficult set of problems-for example, absence from home, friends, and sometimes family; personal risks; missed career opportunities; foreign language, culture, and laws; adverse conditions.Virtual teams are common regardless whether the project manager is traveling.

Question 16

Concern about the local restrictions on toxic waste would be classified as which of the following environmental factors?

Accepted Answer

Project managers should operate within the laws and regulations of the host country.The constraints imposed by national and local laws need to be identified and adhered to.

Question 17

If a construction company in Dallas builds a bridge in Houston, the project would be classified as

Accepted Answer

A domestic project is one performed in its native country for a resident firm (a construction firm building a bridge in its state).

Question 18

Which of the following can help a project manager to digest, clarify, and understand the factors leading to the selection of a specific international project?

Accepted Answer

One approach for the project manager to digest, clarify, and understand the factors leading to the selection of a specific project is to use a risk matrix similar to those found in Chapter 7.The major difference lies in the selection of the risk factors for different project sites.

Question 19

If IBM built a computer system for Outback Barbie Inc. (based in Australia)at their corporate headquarters in Sydney, the project would be classified as

Accepted Answer

A foreign project is executed in a foreign country for a foreign firm (a U.S.firm developing an information system in Malaysia for Malaysian banks).

Question 20

One of the biggest challenges Americans typically have to overcome when working abroad is

Accepted Answer

Two of the biggest adjustments Americans typically have to make in working abroad are adapting to the general pace of life and understanding the punctuality of people.

Quiz 15: International Projects

If the Lincoln Log Construction Co. (based in Chicago) built an assembly plant for General Motors in Nigeria, the project would be classified as