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Study Resources (Business Management)

  21.Scenarios are multiple, plausible stories for probable futures.  22.Scenarios are a particularly useful approach for international companies that face high levels of change and uncertainty, because they allow management to anticipate and prepare for opportunities and threats by predicting and controlling for these developments.  23.Contingency plans are developed in some firms for.
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  141.Organizations, like people, have ____________. In their youth, they are small, fast growing, and tend toward the entrepreneurial. However, as they age, they often become big, complex, and out of touch with their markets.  142.Every successful company uses __________ to put its plans into effect: evaluate, correct, and reward.  143.Companies controlled by.
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  131.One result of ongoing pressures for change in international companies is that changes in organizational form, often called ______, have become an almost constant process.  132.______ involves redesigning organizational structure, hierarchy, business systems, and processes in order to improve organizational efficiency.  133.Reengineering is often accompanied by a significant ______ in middle management.
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  61.A hybrid organization may result from  A.the firm's acquiring a company with distinct products and distribution channels. B.management's attempt to mesh product and regional expertise. C.management's problems with a matrix organization. D.a firm's use of SBUs. E.management's belief that worldwide functional expertise is more significant to the firm than is product or area knowledge. 62.A hybrid.
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  141.The ________________ is a prediction of future sales performance.  142.________ are an itemized projection of revenues and expenses for a future time period.  143._________ are broad guidelines issued by upper management for the purpose of assisting lower-level managers in handling recurring problems.  144.________ are guides that specify the way certain tasks or activities.
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  101.In the new strategic planning process  A.top management is assigning strategic planning to teams of line and staff managers from the same business. B.interaction with important customers and suppliers should be included. C.governments and other stakeholder activities should be direct participants. D.strategic planning avoids collective mind-sets about the competitive environment. E.strategic planning is done by.
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  True / False Questions 1.A company's organizational structure helps to determine where formal power and authority will be located within the organization.  2.Organizational structure deals with how an international business should be organized to ensure that its worldwide business activities are integrated in an efficient and effective manner.  3.An evolving structure for an.
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  81.Proponents of the horizontal corporation:  A.claim that lateral relationships inhibit innovation and new-product development. B.state that this approach to organizing helps to place more decision-making responsibility in the hands of middle managers and other skilled professionals. C.enhances increased control and supervision by upper management. D.enhances efficiency by increasing the use of vertical decision processes. 82.According.
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  11.Production coordination poses difficult problems in many regionalized organizations, which has led many companies to assign many specialized product managers who have line authority.  12.Few international companies are organized by function at the top level.  13.A structure organized by more than one dimension at the top level is a matrix organization.  14.Hybrid organizations.
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  71.With increasing inflation, borrowing becomes  A.more attractive because repayment can be made with cheaper money. B.less attractive because repayment is made with dearer money. C.impossible because money has lost its value. D.a mute issue because of liquidity issues. 72.World interest rates tend to vary across a small range because  A.the IMF has been successful at promoting.
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  91.The Jamaica Agreement  A.established the rules for the floating rate currency exchange rate system. B.led to the free trade agreement in the Caribbean. C.is modeled on the EU's EMU. D.controls exchanges rates in the South Atlantic region. 92.A currency exchange arrangement with no separate legal tender is essentially  A.adopting the currency of another country. B.allowing the currency.
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  91.Headquarters is more likely to rely on subsidiary management if:  A.subsidiary managers are from another country. B.conditions in the host country are very similar to those in the home country. C.the subsidiary is located far away from headquarters. D.the host country has similar institutions and politics to those in the home country. 92.In larger, older.
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  41.Regarding the structure of international companies  A.managers have to consider the nature of their company's international operating environment, both currently and how it is expected to change in the future. B.managers have to consider the nationalities of their competitors and how that determines structure. C.gains from increased specialization of labor may at times.
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  41.Managers of international companies that are attempting to develop a competitive advantage face a formidable challenge because  A.resources are no longer scarce in a globalizing world. B.there are few, if any, options for using the company's resources. C.managers are forced to make choices regarding what to do and what not to do. D.time is.
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  121.Cultural practices that affect business, such as relationships in the procurement process, are not a part of any manual, nor can they be described in a series of action steps. They therefore represent an example of ________ knowledge.  122.A broad statement that defines the purpose for a company's existence, including its.
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  141.In the gold standard, trade imbalances were corrected by a transfer of _______ in the direction of the surplus.  142.The heart of supporters' arguments for the gold system is ________.  143.The Bretton Woods system was a ________-based gold exchange system.  144.Charles De Gaulle pushed the Bank of ___________ to redeem its dollar holdings.
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  81.Scenarios  A.have the objective of envisioning possible futures that might lie outside their traditional frame of reference. B.are based on stories about possible futures that are presented to line managers by the strategic planners. C.extrapolate from past data to make predictions. D.are the basis for creating a company's vision statement. E.are focused on competitors' actions. 82.Which.
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  81.Hawalas make currency exchange and  A.use the international currency exchange markets. B.offer their clients nearly untraceable transactions. C.transfer funds through the established banking system. D.collect interest for their service. 82.The Triffin paradox suggests that  A.reserve currencies can never run deficits. B.eventually, reserve currencies will run deficits, which will lead to lack of confidence in the currency. C.the more.
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  71.When there is strong pressure for a company to adapt its products or services for local markets, it should tend to use a  A.global strategy. B.multidomestic strategy. C.transitional strategy. D.differentiation strategy. E.home replication strategy. 72.Companies pursuing a multidomestic strategy  A.usually have low operating costs and high efficiency. B.often have centralized decision making and quick response to changes in.
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  True / False Questions 1.The objective of scenario building is to force executives to question their assumptions about the environments in which the company operates and incorporate into their planning the uncertainties that might profoundly affect their strategic and operational performance around the world.  2.Scenarios are forecasts that extrapolate from past data.
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  Multiple Choice Questions 31.Historically, gold has been used as a way for people to store value because of its  A.purity and scarcity. B.high transportation and security costs. C.lack of interest-earning ability. D.All of these choices are correct. 32.Sir Isaac Newton put England on the gold standard when he  A.declared, as master of the English mint, that he.
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  61.A clear, concise description of the fundamental beliefs and priorities expected of the organization's members, reflecting how they are to behave with each other and with the company's customers, suppliers, and other members of the global community is known as a  A.strategic plan. B.mission statement. C.vision statement. D.values statement. E.policy. 62.A Booz Allen Hamilton/Aspen Institute survey.
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  41.When the law of one price is applied to interest rates, it suggests that  A.interest rates do not differ much across national borders. B.inflation is not affected by interest rates. C.inflation and interest rates do not follow the law of one price. D.varying interest rates take into account anticipated differences in inflation rates. 42.The international.
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  91.Procedures  A.prescribe how certain activities will be carried out. B.are broad guidelines used to assist lower-level managers to handle recurring problems. C.assure that all scenarios will be the same. D.are prepared in advance of, and to provide input for, strategic plans. E.enable and facilitate employee behaviors to vary as circumstances change within and across nations. 92.Performance.
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  131.A ________________ tends to be used when a company faces strong pressures for reducing costs and limited pressure to adapt products for local markets.  132.A ________________ tends to be used when a company simultaneously confronts pressures for cost-effectiveness and local adaptation.  133.According to the text, there may be a "threshold of ________".
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  Multiple Choice Questions 31.Which of the following is incorrect about scenario analyses?  A.The objective of the process is to force executives to question their assumptions about the environment. B.The process attempts to incorporate the uncertainty and potential changes that might impact strategic and operational performance. C.Managers develop scenarios and use them for discussion. D.Scenario planning.
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  111.________________ is the process by which an organization determines where it is going in the future, how it will get there, and how it will assess whether and to what extent it has achieved its goals.  112.The ultimate manager of strategic planning and strategy making is the firm's ________________________.  113.The first step.
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  121.The _______________ Commission has control over swap and futures contracts.  122.A currency that is used for international trade is known as a _________ currency.  123.______________ currency is the name given to a currency used by central banks when they intervene in the currency markets.  124.The price of one currency expressed in terms of.
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  51.The balance of payments account is a record of  A.the total tangible trade flows of a country over a five-year period. B.a country's transactions with the rest of the world. C.a country's total debt service payments during a one-year period. D.the outstanding balance of a country's debt payments for the fiscal year. 52.The balance of.
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  Multiple Choice Questions 31.To facilitate Kraft's goal of enhancing growth prospects within developing-country markets, between 2006 and 2012 the company  A.moved an increasing proportion of decisions to the company's Illinois headquarters. B.gave full profit-and-loss accountability to the business units. C.centralized product development activities to enhance new product creation. D.gave headquarters increased control over human and.
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  11.Knowledge that an individual has but that is difficult to express clearly in words, pictures, or formulas, and therefore difficult to transmit to others, is called explicit knowledge.  12.A broad statement that defines the purpose for a company's existence is the mission statement.  13.Objectives direct the firm's course of action, maintain it.
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  21.Advantages of the virtual corporation concept include that it allows a company to build competence from the ground up and to increase management's control over the corporation's activities.  22.The horizontal organization has been characterized as antiorganization because its designers try to remove the constraints imposed by the conventional organizational structure.  23.According to.
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  61.One attribute of the U.S. tariff schedule is  A.that it is printed in both Arabic and Hebrew. B.how specific it is. C.that its categories are quite general and easy to apply. D.that its harmonized version can be accessed via cell phone and iPad. 62.Fixed rate relationships among currencies could not stay fixed, according to Obstfeld.
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  131.The _______ recognizes eight types of currency exchange arrangements.  132.A _________________ is holdings a country can draw on when needed to finance trade or investments or to intervene in currency markets.  133.Dollars held in foreign country's reserves are held in the form of _________, so they earn interest.  134.The ______________ describes that when.
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  Essay Questions 151.What is organizational design and why is it an important topic for managers of international companies to understand?   152.What are the four primary dimensions that need to be considered when designing the structure of an international company and why are they important?      .
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  101.The FX markets in the U.S. are  A.largely unregulated. B.regulated quite strictly, thanks to the Sarbanes-Oxley Act (SOX). C.controlled by the state banking commissions. D.limited by their trading hours. 102.Most FX exchanges are  A.over the counter (OTC). B.limited to reported amounts (over $10,000). C.open only during established trading hours. D.on the East Coast of the U.S. for trade with.
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  111.The two main issues management must consider in designing an international company's structure are (1) ______ to most effectively take advantage of efficiencies gained from specialization of labor and (2) ______ the resulting departments' activities to meet the firm's overall objectives.  112.The four primary dimensions that need to be considered when.
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  51.As their overseas operations have increased in importance, larger multinationals have felt the need to  A.change from a global structure to an international division. B.establish worldwide organizations based on product, process, national subsidiary, or customer classes at the top level. C.eliminate their domestic operations. D.establish worldwide organizations based on product, customer class, function, or.
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  51.According to the text, when the managers are analyzing the corporate controllable variables, the three key questions managers must address about their business include  A.who are the company's target customers? B.what will be the costs that the company will incur in delivering value to its target customers? C.how much will the company be.
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  111.The random walk hypothesis is an explanation of _____________ forecasting.  112.The ________________ approach to exchange rate forecasting assumes that current prices reflect all available information.  113._______________ assumes that past exchange rate patterns (trends, waves) can predict future ones.  114.____________ policies are those that control the amount of money in circulation.  115.____________ policies concern the.
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  71.According to the text, companies are now accepting the need for  A.eliminating top management. B.less frequent reorganization. C.reducing the size of middle management. D.eliminating structures based on function. E.organizing based first on geography. 72.An organization that coordinates economic activity to deliver value to customers using resources outside the traditional boundaries of the organization is known as.
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  121.A common problem with the use of a(n) ____________ structure is that it creates a duplication of product and functional specialists.  122.Production coordination across regions presents challenges for companies with geographic region structures, so ICs often place specialized ______ managers on the headquarters staff to provide input to corporate decisions concerning.
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