International Management

Transcription

1 International Management 7.5 ECTS Ladok code: The exam is given to: Registered students Name: Personal number: Date of exam: 2 nd of June Time: 09:00 14:00 Means of assistance: No assistance Total amount of point on exam: 60 points in total Requirements for grading: < 35 points = FX; points = E; points = D; points = C points B; points = E. Additional information: Students can choose to answer in English or Swedish. Next re-exam date: Next exam in end of august 2014 The results are, for the most part, posted within three weeks after the exam, otherwise it s the following date: Important! Do not forget to write your name on each sheet you hand in. Good Luck! Examiner: Helgi-Valur Fridriksson Phone number:

2 Theme 1: Multiple-choice questions. Total credits 30, i.e. 2 points for each question. Mark your answer with a circle. Only one circle is valid. Answer on separate paper, (PAPER A) Right answer will give you 2 points; wrong answer 0,5 points; no answer 0 points. 1) Which of the following strategies is a firm most likely to use, if it initiates a joint venture with a local company in a foreign country, as a way of adapting to risk? A) equity sharing B) participative management C) localization of the operation D) development assistance 2) In the context of doing business in Asia, what is meant by the phrase "the contract is in the relationship, not on the paper"? A) Asian contracts are not legally binding for MNCs. B) Contracts are ceremoniously destroyed after they are written. C) Managers risk being offensive to Asians by requiring contracts. D) Managers should nurture the relationship to ensure the reliability of the contract. 3) Which of the following significantly increases the complexity of social responsibility and ethical behavior of MNCs? A) distance between the headquarters and the subsidiaries B) difficulties posed in training managers from different cultures C) additional stakeholders associated with the firm's activities D) international laws, regulations, and moral principles 4) International managers can benefit greatly from cultural sensitivity because it: A) enables them to develop appropriate policies B) enables them to understand cultures better, by using stereotypes C) helps them protect the organization from outside influences D) helps them increase the long-term orientation of the organization 5) Which of the following is a primary reason for failed expatriate assignments? A) creeping incrementalism B) cross-cultural differences C) moral universalism D) economic barriers 6) Which of the following terms refers to the basic means by which a company competes? A) mission B) procedure C) strategy D) process 1

3 7) Restrictive trade barriers most likely influence the globalization of businesses by encouraging firms to: A) develop joint ventures with local firms B) import supplies from foreign vendors C) expand the exportation of raw materials D) switch from exporting to overseas manufacturing 8) Which of the following is the first step of the planning phase of a strategic management process? A) assessment of the external environment that the firm will face in the future B) establishment of the company's mission C) analysis of the firm's relative capabilities to deal successfully with the external environment D) seeking alternative strategies using competitive analysis 9) Which of the following is true with regard to the global functional structure? A) The global functional structure results in plants that serve widely different markets. B) The global functional structure is most advantageous for firms with diversified product lines that have different technological bases and that are aimed at dispersed markets. C) The global functional structure is used primarily by large firms with highly decentralized systems. D) Foreign operations in a global functional structure are integrated into the activities and responsibilities of each department to economies of scale. 10) Which of the following organizational structures is particularly appropriate for product lines using similar technology and for businesses with a narrow spectrum of customers? A) global functional structure B) international division C) global product structure D) matrix structure 11) Which of the following should ideally dictate the organizational structure and staffing needs of the firm? A) the firm's customers B) the size of the firm C) the firm's strategy D) the firm's short-term objectives 13) Local managers are hired to fill key positions in their own country under the : A) global staffing approach B) polycentric staffing approach C) ethnocentric staffing approach D) xenocentric staffing approach 2

4 14) Reverse culture shock occurs primarily because of the difficulty of. A) learning foreign languages B) reuniting with family members C) reintegrating into the organization D) adapting to foreign cultures 15) Low power distance implies that. A) people would be more likely to prefer an autocratic leadership style B) most people would be more comfortable with the traditional division of work and roles C) people would be more motivated by teamwork and relations with peers D) most people would be more comfortable with a clear distinction between managers and subordinates rather than with a blurring of decision-making responsibility 3

5 Theme II: True and false questions. 10 points, i.e one point each question Nr: Question True 1 Small- and medium-sized enterprises contribute to their national economies by creating new jobs. False Cultural sensitivity requires the willingness to put oneself in another's shoes. Globalization of competitors is one of the proactive reasons that prompt a company to operate overseas. Internationalization is the process by which a firm gradually changes in response to global competition; domestic market saturation; and the desire for expansion, new markets, and diversification. Alienation or lack of support from headquarters is one of the major causes of expatriate failure. Research indicates that correspondence through s is the best way to kick off a virtual team project. The prevailing labor relations system in a country is important to the international manager because it can constrain the strategic choices and operational activities of a firm operating there. In collectivist cultures, employees typically value their autonomy, and are unlikely to be motivated by fringe benefits and training provided by the employer The participative leader is one who delegates decision-making and encourages subordinates to take responsibility. Core competencies are typically easy for competitors to imitate. 4

6 Theme III: Short essay questions. 20 points, i.e. 10 points for each question. Question 1) What is a SWOT analysis? How is it used in strategic planning? 5

7 Question 2) How is conflict during negotiations handled in high-context and low-context cultures? 6

8 PAPER A Answer multiple question 1 15 in this Template Question 1 Question 2 Question 3 Question 4 Question 5 Question 6 Question 7 Question 8 Question 9 Question 10 Question 11 Question 12 Question 13 Question 14 Question 15 Your answer (just one is allowed) Write the letter which you know is the right one 7