2026 FULL QUESTIONS AND SOLUTIONS
GRADED A+
◍ When expanding internationally to a country with a lower average income, a
company made efforts to reduce the price of its product, even though it
eliminated some of the benefits the product has in other markets. This
allowed for greater sales in the new market.Which strategy is being used by
this company?StandardizationMultibrandGlobalAdaptation.
Answer: Adaptation
◍ - Ethnocentric: Decisions are made at the home office. Expatriates hold key
positions in the field.- Polycentric: Decisions are made at the local level.
Locals hold key positions in the field.- Geocentric: Decisions are made at
the home office but with input from the field. Mix of expatriates and locals
holds key positions throughout the company..
Answer: Describe the three HR strategies.
◍ Which type of investor secures funding from a number of speculative
financiers and pursues strong global business opportunities still in the
start-up phase?Strategic partnershipsVenture
capitalistsCrowdsourcingPersonal contacts.
Answer: Venture capitalists
◍ An aircraft manufacturer uses a supply chain management system in which
parts of the aircraft are made in different countries and assembled at the
company's headquarters.Which type of supply chain is the company using?.
Answer: Multinational
◍ - Host governments can specify ownership restrictions if they want to keep
control of local markets or industries in their citizens' hands.- A company's
, home government usually imposes tax rates and a sanction to persuade
companies to invest in the domestic market rather than a foreign one.-
Foreign investors may be required to purchase a certain percentage of
intermediate goods from the host countries.- Changes in governments or
changes in policies may lead to governments choosing to expropriate
foreign assets to nationalize critical industries such as oil, electric power,
mines, and telecommunications..
Answer: Identify the strategies that governments use to restrict FDI.
◍ A company wishes to make a foreign direct investment into a
country.Which investment should be used by the company?Purchase of a
plant in the host countryPurchase of a noncontrolling investment in a host
country companyPurchase of a bond in the host country's bond
marketPurchase of stock in a host country company.
Answer: Purchase of a plant in the host country
◍ - Primary: firsthand accounts by people who have lived in the culture; raw
data about everything from health statistics to business data to weather
information; and newspapers, diaries, travel journals, blogs, photographs,
and videos.- Secondary:
U. S. Department of State,
U. S. government's export site, Read articles and advice about living
abroad..
Answer: What are the reputable primary and secondary sources for learning
about foreign cultures?
◍ Currency swap contracts.
Answer: A simultaneous buy and sell of a currency for two different dates
◍ All the redundancies added to a system to make certain that it functions
properly.
Answer: What is internal control?
◍ horizontal integration.
Answer: The expansion at a single point in the supply chain, often through
the combination of two or more similar companies
,◍ Sarbanes-Oxley Act of 2002.
Answer: Law aimed at increasing the level of ethical transparency within
corporate America
◍ A company's chief executive officer (CEO) emphasizes to other executives
in the foreign country's joint venture that the CEO's culture should take
precedence over other cultural systems since it is superior.Which type of
viewpoint is the CEO demonstrating regarding culture?.
Answer: Ethnocentrism
◍ Country A exports more goods to Country B than it imports from Country
B. Country A receives more monetary gain by using this practice.Which
relationship does Country A have with Country B?.
Answer: Trade surplus
◍ An employee feels empowered to make decisions to solve customer
problems independent of seeking manager approval and uses flexibility to
meet customer needs.Which decision-making structure is being used by this
employee?.
Answer: Decentralized
◍ Which technique allows customers to store personal information such as
credit card data in one list of records and maintain total ownership and
control over such information?.
Answer: Blockchain
◍ knowledge workers.
Answer: Workers who develop or use knowledge, contributing to and
benefiting from information used to perform planning, acquiring, searching,
analyzing, organizing, storing, programming, producing, distributing,
marketing, or selling functions
◍ An individual works in a global office where it is typical to pay small,
unofficial fees to top administrators in the city to gain an advantage. The
individual agrees to pay the fee needed to expedite placement of a business
phone line at home so work can be completed after normal work hours.
, What is this inducement called?Grease paymentGratuityInstallation
feeKickback.
Answer: Grease payment
◍ A company wants to gain market share but does not want to establish
operations in other countries nor tailor its products to the other
countries.Which entry strategy should the company use to meet this goal
under these conditions?ExportTransnationalJoint ventureMultidomestic.
Answer: Export
◍ A company wishes to make a foreign direct investment in a new country
where it can make and test products more easily. While local suppliers
would not normally meet the requirements for its products, this new plant
will accept them.Which factor affected the company's production location?.
Answer: Innovation
◍ kyat.
Answer: The basic monetary unit of Burma (Myanmar), equal to 100 pyas
◍ Mercosur (Common Market of the South).
Answer: - customs union- creating the common market of the south (Brazil,
Argentina, Paraguay, Uruguay)
◍ What is the term for the services a company provides when it helps an
employee who has worked in a host country make the transition back to the
home country?Field trainingDocumentary trainingRepatriationOrientation.
Answer: Repatriation
◍ In foreign exchange markets, demand and supply become closely
interrelated, because a person or firm who demands one currency must at the
same time supply another currency—and vice versa..
Answer: Define supply and demand of a currency.
◍ A company is training new employees and helping them identify
discrepancies.Which scenario indicates a discrepancy that should be
identified by the employees?An accounting manager siphons a significant
amount of funds from the company's account.A data entry technician