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16. ____________ people account for the largest percentage of global production.
20. When a company concentrates on national cultural differences in terms of averages, which of
the following is most likely?
a. The company finds polycentrism to be an ineffective operating method.
b. The company avoids cultural collision.
c. The company increases the likelihood of encountering protests from minority groups
within the culture.
d. The company overlooks the possibility of being successful by dealing with the outliers
who don’t conform to the averages.
38. Which of the following stakeholders groups want additional sales and increased productivity,
which result in higher profits and larger returns going to them?
b. society at large
39. The net export effect of a foreign direct investment is positive in the host country if the FDI
results in ____________.
a. more imports from the investing country
b. a reduction of imports by the home country
c. dividends not being sent back to the home office
d. the development of markets abroad for the FDI in the host country
45. HIV/AIDS is affecting the operations of Anglo American PLC ____________.
a. for workers in South Africa but nowhere else in the world
b. in a relatively insignificant way since Anglo Americans will not hire workers infected
c. by forcing the company to invest outside of South Africa to avoid having to deal with
the health issues
d. through health care and related costs
54. In the closing case, LUKoil has been making many investments abroad. Which of the following
is NOT one of its motives for making these investments?
a. The Russian government ownership of the export pipeline looms as a risk for LUKoil to
be able to export a sufficient amount of crude.
b. The acquisitions may lower LUKoil’s cost by not having to negotiate and enforce
contracts with an independent company.
c. Foreign reserves are necessary because of insufficient domestic reserves to satisfy the
needs of its home market.
d. It is a means of gaining experienced personnel and technical knowledge.
74. Spot trades in foreign exchange can take place ______________.
a. only in the big money center banks
b. in money center and regional banks due to the rise in electronic trading
c. in electronic format only
d. in any country except for the country where the currency is issued
87. What is the name of the strategy to describe a situation in which a company sequences its
order of entering foreign countries by going first to those most likely to adapt and catch up to
its innovative advantage?
a. oligopolistic reaction strategy
b. liability of foreignness strategy
c. imitation lag strategy
d. lead country strategy
97. Downsizing and delayering are two ways that companies have ____________.
a. restructured their workplace organizations
b. formalized their workplace organizations
c. followed the example of the Internet as a design standard
d. solidified the social contract between employee and company
100. Reports, management performance evaluations, and accounting comparisons are three
examples of ____________.
a. control systems
b. coordinating systems
c. control tools
d. coordinating tools
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