Question 1

Which of the following are used to develop global leaders in corporate settings:

Accepted Answer

All of the options listed are commonly used methods to develop global leaders in corporate settings. Global team experience, overseas assignments, international travel, and cross-cultural training all contribute to enhancing a leader's ability to operate effectively in a global context by providing them with the necessary exposure, skills, and understanding of diverse cultures and business practices.

Question 2

The ability to formulate international strategies, appreciate different organizational structures, build cross-cultural teams and analyze marketplace environments are what part of the global leadership grooming process:

Accepted Answer

Cross-cultural training is essential for developing skills such as formulating international strategies, understanding organizational structures, building cross-cultural teams, and analyzing marketplace environments.

Question 3

Authority structures, decision-making apparatuses, information flows, tolerance for individual behaviors, competitive or cooperative internal environments are all aspects of:

Accepted Answer

These aspects are components of corporate culture, which encompasses the values, beliefs, and behaviors that determine how a company's employees and management interact and handle business transactions.

Question 4

When countries such as Indonesia, India and South Korea open up their markets in response to calls from the IMF and the WTO, firms in these markets respond by globalizing. What type of driver is instrumental in the globalization process:

Accepted Answer

Government drivers are instrumental in the globalization process when countries open up their markets in response to calls from international organizations like the IMF and the WTO. This is because such actions involve policy changes and regulatory adjustments made by governments to facilitate international trade and investment.

Question 5

When a US or UK company enters to Japanese market, it is likely to adapt its corporate culture to become more conservative in its decision-making. This is recognition of cultural differences based on:

Accepted Answer

Uncertainty avoidance refers to the extent to which a culture feels threatened by uncertain or unknown situations. Japanese culture has a high level of uncertainty avoidance, which means that businesses tend to be more risk-averse and conservative in their decision-making processes. When a US or UK company, which may originally have a more risk-taking culture, enters the Japanese market, adapting to a more conservative approach is a way to align with the local cultural preference for minimizing uncertainty and risk.

Question 6

The ability to appreciate global and local considerations and manage global-local tradeoffs is which of the following characteristics of global leaders:

Accepted Answer

Duality refers to the ability to understand and balance different perspectives, such as global and local considerations, which is essential for managing global-local tradeoffs effectively.

Question 7

Information technologies in international companies have all of the following advantages except:

Accepted Answer

Information technologies allow for more efficient management and operation of supply chains without necessarily making ownership of supply chain partners more essential. They enable better communication, data sharing, and responsiveness without the need for direct ownership, contrasting with the other options which are direct benefits of IT in international companies.

Question 8

An international firm's competitive advantages center around its responsiveness to local markets. Its most likely organizational structure would be a(n):

Accepted Answer

A geographic structure allows a firm to be responsive to local markets because it organizes its operations around specific regions or countries, enabling it to tailor its products, marketing strategies, and operations to meet the unique needs and preferences of customers in each locale.

Question 9

A Japanese, Western European and a North American firm amalgamate to form one operating unit. Industry structure effects are likely to be felt most at the:

Accepted Answer

When firms from different parts of the world amalgamate, the industry structure effects are likely to be felt at the worldwide level due to the global nature of their operations and markets.

Question 10

All of the following are global leadership characteristics except:

Accepted Answer

Global leadership involves balancing the interests of both the parent company and local entities, respecting local perspectives, and adapting to global market challenges. Acting only in the best interests of the parent company, without considering local needs and global dynamics, does not align with effective global leadership practices.

Question 11

Favorable logistics, low cost production, and steep experience curves are examples of what type of globalization driver:

Accepted Answer

Favorable logistics, low cost production, and steep experience curves are considered cost drivers because they directly influence the cost efficiency of operating on a global scale, making it more economically viable for businesses to expand internationally.

Question 12

A large firm pushing hard into the international marketplace decides to reassess its distributor network, its suppliers and its configuration of manufacturing plants. The firm is:

Accepted Answer

The firm is restructuring its supply chain by reassessing its distributor network, suppliers, and configuration of manufacturing plants. This involves making changes to how products are produced, handled, and distributed to better align with its international market expansion goals.

Question 13

When firms face rising imports and increasing numbers of foreign rivals in the home market, what type of globalization driver is at work in forcing them into overseas markets:

Accepted Answer

Competitive drivers are at work when firms face rising imports and increasing numbers of foreign rivals in the home market, pushing them into overseas markets to maintain or expand their market share.

Question 14

When companies accumulate much expertise in knowledge or technology-intensive and need to leverage this expertise globally to maintain it, this is an example of what type of cost driver:

Accepted Answer

Experience curve effects refer to the reduction in per-unit production costs that occur over time as a company gains experience and expertise in production and operations. When companies accumulate significant expertise in knowledge or technology-intensive areas and need to leverage this expertise globally to maintain their competitive edge, they are benefiting from experience curve effects. This is because their accumulated knowledge and efficiencies allow them to produce at lower costs as they continue to learn and improve their processes.

Question 15

When an Asian company brings its corporate culture to North America, it is likely to adapt its group decision-making processes because of cultural differences in:

Accepted Answer

Cultural differences in individualism-collectivism orientations often necessitate adjustments in group decision-making processes when a company from Asia (typically more collectivist) operates in North America (more individualist). This is because the emphasis on group consensus and collective action in Asian cultures may not align with the more individualistic approach favored in North American workplaces.

Question 16

A large consumer products firm decides that a third of its brands have few sales and no international potential and decides to sell or discontinue them as it prepares for a big international push. The company is:

Accepted Answer

The company is realigning its corporate competencies by focusing on brands with the potential for international sales and deciding to sell or discontinue those that do not fit this strategic direction. This involves adjusting its strategic focus and resources towards its core strengths and markets with growth potential.

Question 17

Preparing for internationalization and globalization requires firms to perform which of the following activities:

Accepted Answer

Preparing for internationalization and globalization involves developing international management and leadership capabilities, restructuring supply chains for global competitiveness, and focusing corporate resources on activities with international potential. These steps are essential for firms to effectively compete and operate on a global scale.

Question 18

When a company takes its home market corporate culture abroad and then adapts certain aspects of it to local national cultures, this is an example of:

Accepted Answer

This approach is known as a global-local corporate culture, where a company blends its inherent corporate culture with elements of the local cultures where it operates, adapting to local preferences and norms while maintaining its core identity.

Question 19

When a North American firm takes its egalitarian corporate culture into a Latin American culture that emphasizes social distinctions, corporate titles and protocols, it should make corporate culture adaptations based on:

Accepted Answer

The correct answer is B) Power-distance differences because power distance refers to the extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally. Latin American cultures often have higher power distance, meaning they place more emphasis on hierarchy and social distinctions, compared to North American cultures which tend to have a more egalitarian approach. Therefore, adapting to these differences is crucial for the North American firm.

Question 20

A group of Western European firms join together in a series of alliances and acquisitions to counter the effects of global competitors. These are the effects of globalization on:

Accepted Answer

When Western European firms join together in alliances and acquisitions to counter global competitors, it directly affects the industry structure by altering the competitive dynamics and market power within the industry.

Quiz 7: Internationalization and Globalization Processes