International Business Practice Exam
Course Introduction
International Business explores the strategies, operations, and challenges that organizations face when conducting business across national borders. The course covers key topics such as global markets, cross-cultural management, international trade theories, foreign direct investment, global supply chains, international marketing, and the legal and ethical issues associated with global operations. Students will develop an understanding of how economic, political, and cultural environments impact international business decisions, and will gain practical skills for managing in todays interconnected global marketplace.
Recommended Textbook
Negotiation 7th Edition by Roy J Lewicki
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Chapter 1: The Nature of Negotiation
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Q1) Why should negotiators be versatile in their comfort and use of both value claiming and value creating strategic approaches?
Answer: Not only must negotiators be able to recognize which strategy is most appropriate,but they must be able to use both approaches with equal versatility.There is no single "best","preferred" or "right" way to negotiate;the choice of negotiation strategy requires adaptation to the situation,as we will explain more fully in the next section on conflict.Moreover,if most negotiation issues/problems have claiming and creating values components,then negotiators must be able to use both approaches in the same deliberation.
Q2) When parties are interdependent,they have to find a way to ____________ their differences.
Answer: resolve
Q3) What does BATNA stand for?
Answer: Best Alternative To a Negotiated Agreement.
Q4) Negotiation is a strategy for productively managing conflict.
A)True
B)False
Answer: True
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Chapter 2: Strategy and Tactics of Distributive Bargaining
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Q1) What are the four important tactical tasks for a negotiator in a distributive bargaining situation?
Answer: (1)Assess the other party's outcome values and the costs of terminating negotiations; (2)manage the other party's impression of one's own outcome values; (3)modify the other party's perception of his or her own outcome values; (4)manipulate the actual costs of delaying or aborting negotiations.
Q2) To prevent the other party from establishing a committed position,a negotiator could
A) give them the opportunity to evaluate the matter fully.
B) acknowledge the other's commitment.
C) reiterate the commitment.
D) make a joke about the commitment.
E) None of the above should be used to prevent the other party from establishing a committed position.
Answer: D
Q3) What are the three ways to manipulate the costs of delay in negotiation?
Answer: (1)Plan disruptive action; (2)ally with outsiders; (3)manipulate the scheduling of negotiations.
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4
Chapter 3: Strategy and Tactics of Integrative Negotiation
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Q1) In an integrative negotiation,negotiators must be ____________ about their primary interests and needs,but ____________ about the manner in which these interests and needs are met through solutions.
Answer: firm;flexible
Q2) People who are interdependent but do not trust each other will act ____________ or ____________.
Answer: tentatively;defensively
Q3) What two approaches can be used to generate alternative solutions?
Answer: Redefine,recast,or reframe the problem so as to create win-win alternatives out of what earlier appeared to be a win-lose problem;and taking the problem as given and creating a long list of alternative options from which they can choose a particular option.
Q4) Define integrative negotiation.
Answer: A collaborative process in which the parties define their common problem and pursue strategies to solve it.
Q5) As a problem is defined jointly,it should accurately reflect both parties' ____________ and ____________.
Answer: needs;priorities
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Page 5
Chapter 4: Negotiation: Strategy and Planning
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Q1) When negotiating for a large consistency such as an entire company or a union or community,the process of consulting can be elaborate and ____________.
Q2) Of the following reasons negotiators might choose not to negotiate which one is not among them?
A) It simply may not be worth the time.
B) The outcomes can be achieved even if negotiations don't work out.
C) The outcomes cannot be achieved even if negotiations don't work out.
D) If one is able to meet one's needs without having to negotiate at all.
E) all of the above are reasons for adopting an avoidance strategy.
Q3) What are the three types of goals negotiators must anticipate to achieve in a negotiation?
Q4) What is the primary goal in the use of the strategy of accommodation?
Q5) The decision to negotiate is closely related to the desirability of ___________________.
Q6) The first iteration through the planning process should be firm,and the negotiator should be inflexible and not modify and adjust previous steps as new information becomes available.
A)True
B)False
Page 6
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Chapter 5: Ethics in Negotiation
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Q1) Research studies have shown that individuals who are strongly Machiavellian are
A) more willing and able con artists.
B) more likely to lie when they need to.
C) better able to tell bigger lies without feeling anxious about it.
D) more persuasive and effective in their lies.
E) Individuals who are strongly Machiavellian have all of the above traits.
Q2) The six categories of marginally ethical negotiating tactics are: 1)competitive bargaining,2)emotional manipulation,3)misrepresentation,4)misrepresentation to opponent's networks,5)inappropriate information gathering,and 6)____________.
Q3) Norms are the ____________ social rules-the dos and don'ts-that govern social behavior.
Q4) The fundamental questions of ethical conduct arise only when we negotiate in distributive bargaining situations.
A)True
B)False
Q5) As a result of employing an unethical tactic,the negotiator will experience positive or negative consequences.These consequences are based on:
Q6) What is the purpose of using marginally ethical ambiguous negotiating tactics?
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Chapter 6: Perception, Cognition, and Emotion
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Q1) Define the fundamental attribution error.
Q2) In negotiation,when does the availability bias operate?
Q3) _________________ occur when people generalize about a variety of attributes based on the knowledge of one attribute of an individual.
Q4) What can help prevent errors of anchoring and adjustment?
Q5) Both risk-averse and risk-seeking framing is part of what theory?
Q6) The way an issue is framed will not influence how negotiators perceive risk and behave in relation to it.
A)True
B)False
Q7) ____________ in frames between parties are sources of conflict.
Q8) Describe the double-edged effect of overconfidence.
Q9) ____________ can also occur as one party uses metaphors,analogies,or specific cases to illustrate a point.
Q10) A key issue in perception and negotiation is framing.What is framing?
Q11) What role do frames play in the way they are constructed so that bargainers define problems and courses of action jointly through their talk?
Q12) Disputes settled by ____________ usually create clear winners and losers. Page 8
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Page 9
Chapter 7: Communication
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Q1) Define "reframing explanations."
Q2) Researchers have been examining the effects of channels in general,and _____________ in particular,on negotiation processes and outcomes during much of the past decade.
Q3) Communication "works" to the degree that a wide variety of information is completely and thoroughly shared among the parties,and mutual understanding is reached.
A)True
B)False
Q4) In negotiations,language operates at two levels: the _____________ level (for proposals or offers)and the _____________ level (for semantics,syntax,and style).
Q5) Some nonverbal acts,called <i>attending behaviors</i>,are particularly important in connecting with another person during a coordinated interaction like negotiation.Why?
Q6) Manageable questions cause difficulty,give information,and bring the discussion to a false conclusion.
A)True
B)False
Q7) How can feedback be used strategically?
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Chapter 8: Finding and Using Negotiation Power
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Q1) If power is based on personality and individual differences,the personality traits will affect how individuals acquire and use power.
A)True
B)False
Q2) Power is only the capacity to influence: using that power and skillfully exerting influence on the other requires a great deal of ____________ and experience.
Q3) Tactics designed to create power equalization are often employed as a way to gain advantage or to block the other's power moves.
A)True
B)False
Q4) Negotiators employ tactics designed to create power ____________ as a way to "level the playing field."
Q5) In his book Managing with Power,Jeffrey Pfeffer illustrated how powerful political and corporate figures build empires founded on ________________.
Q6) State the "relational" definition of power as defined by Deutsch.
Q7) If power is in the eye of the beholder,then how is power effective?
Q8) Describe the concept of "power motives."
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Chapter 9: Influence
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Q1) The recency effect
A) indicates that the important points should be made early.
B) should be used when the topics are familiar,interesting,or controversial to the receiver.
C) states the tendency for the last item presented to be the best remembered.
D) states that the first item in a long list of items is the one most likely to be remembered.
E) None of the above statements about the recency effect are true.
Q2) Exchange is the process of offering ____________ to secure the other's compliance and cooperation.
Q3) Why can emotion be a powerful tool?
Q4) Emotion combined with ____________ leads to assertiveness and determination.
Q5) Negotiators frequently give very little attention to the other party's opinions and point of view.
A)True
B)False
Q6) Keeping in mind the Intention to Persuade,is it better for the negotiator to come across as a huckster or poised and polished? Explain.
Q7) What techniques can be used to establish expertise?
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Chapter 10: Relationships in Negotiation
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Q1) Researchers Sander and Bordone suggest that integrative negotiation tools are most effective in resolving family business disputes.They further maintain that parties must consider all the interests involved,including the more ____________ but equally important strong emotions and relationship history that the parties bring to the dispute.
Q2) Because relationship negotiations are never over, A) parties generally tackle negotiations over tough issues first in order to "get off on the right foot."
B) it is often impossible to anticipate the future and negotiate everything "up front."
C) issues on which parties truly disagree will go away with the conclusion of the negotiation.
D) parties should never make concessions on substantive issues.
E) All of the above are consequences of relationship negotiations.
Q3) In a transactional negotiation,the most important issue is usually the A) enhancing the relationship.
B) better deal.
C) dependence dynamics.
D) inventory questions.
E) all of the above.
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Chapter 11: Agents, Constituencies, Audiences
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Q1) Which of the following is not an example of major characteristics of audiences?
A) Audiences vary according to whether they are physically present at or absent from the negotiation.
B) Audiences try harder when they are under surveillance.
C) Audiences affect negotiations is by the degree of their involvement in the process.
D) Audiences also give periodic feedback to the negotiators,evaluating their effectiveness and letting them know how they are doing.
E) Audiences who are outcome-dependent derive their payoffs as a direct result of the negotiator's behavior and effectiveness.
Q2) The accountability of a negotiator to an audience will occur under what two dominant conditions?
Q3) Why should a negotiator use great caution in exceeding authority?
Q4) In the short term,back channel diplomacy does not help to manage uncertainties by achieving early breakthroughs.
A)True
B)False
Q5) Why do constituencies use agents?
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Chapter 12: Coalitions
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Q1) ____________ coalitions are emergent interest groups that have not yet formed into an operating coalition.
Q2) Bedfellows are parties with whom a negotiator has
A) high agreement and low trust.
B) low agreement and high trust.
C) low agreement and low trust.
D) high agreement and high trust.
E) Bedfellows have none of the above characteristics.
Q3) In a ____________,the parties are intentionally joining to accomplish some specific purpose that serves their interests.
Q4) ____________ are people with whom a negotiator has conflicting goals and objectives,but who can be trusted to be principled and candid in their position.
Q5) The more resources a given potential partner brings to a coalition or the greater variety in resources or types of inputs,the more that partner can add to the coalition,and the more ____________ he or she will have in contributing to the coalition and dictating what the coalition should look like.
Q6) What is the strength in weakness argument?
Q7) Why do coalitions form?
Page 15
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Chapter 13: Multiple Parties and Teams in Negotiation
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Q1) In what ways do multiparty negotiations differ from two-party deliberations?
Q2) The drawback,of course,is that many group members may be satisfied with the first solution-either because it already incorporates their views or because the difficulty of achieving it may sap their ____________ for exerting any time and energy to improve it.
Q3) What challenge does the increased number of negotiators in a multiparty negotiation present?
Q4) During the information management phase of multiparty negotiations,what group norms can specifically undermine effective discussions?
Q5) During the information management phase of multiparty negotiations,____________ "patrol" the environment and bring in relevant external information that may be useful to the group.
Q6) In ____________ technique,after a brainstormed list of solution options is created,group members rank,rate or evaluate the alternatives in terms of the degree to which each alternative solves the problem.
Q7) ____________ of multiparty negotiations must be sensitive to keeping tight control over the group process while not directly affecting the group's outcome.
Q8) What is the "illusion of consensus?"
Page 16
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Chapter 14: Individual Differences I: Gender and Negotiation
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Q1) The search for gender ____________ is the most researched individual difference topic in negotiation.
Q2) Men and women may receive different treatment and outcomes during negotiations according to research on salary negotiations.Explain the differences.
Q3) According to Kolb and Coolidge,women are more likely to seek ____________ where there is interaction among all parties in the relationship to build connection and enhance everyone's power.
Q4) Sex differences in negotiation performance have been found to result from gender ____________ about male and female ability and behavior.
Q5) Identify the one result from among the following empirical findings on gender differences that is not true.
A) Men and women conceive of negotiations in different ways.
B) Men and women communicate differently in negotiation.
C) Men and women are treated similarly in negotiation.
D) Men and women can use the same tactics to different effects.
E) Men and women stereotypes affect negotiator performance.
Q6) Watson and Kasten found that women managers perceived male behavior as more ____________ than men did.
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Chapter 15: Individual Differences II: Personality and Abilities
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Q1) The compromising style is low on both assertiveness and cooperativeness as identified by Thomas' research.
A)True
B)False
Q2) ____________ is considered to be a judgment about one's ability to behave effectively in a given situation.
Q3) Fry found that high Mach negotiators did not change their negotiation style as a function of the other party's Machiavellianism.
A)True
B)False
Q4) ____________________ orientations are preferences that people have regarding the kinds of outcomes they prefer in social settings where interdependence with others is present.
Q5) The ability to understand the other person's ____________ will be more likely to help find an agreement that satisfies the other party.
Q6) With respect to distributive bargaining (a price negotiation simulation),Barry and Friedman found that negotiators higher in extraversion and agreeableness were more likely to do ____________ for themselves.
Page 18
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Chapter 16: International and Cross-Cultural Negotiation
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Q1) The notion that negotiation is both art and science is especially valid at the cross-cultural or international level.
A)True
B)False
Q2) How does ideology contribute to making international negotiations difficult?
Q3) Ideological clashes increase the communication challenges in cross-border negotiations in the broadest sense because the parties may disagree on the most fundamental levels about what is being negotiated.
A)True
B)False
Q4) Which of the following is an immediate context factor in cross-cultural negotiations?
A) external stakeholders
B) instability
C) international economic factors
D) relationship between negotiators
E) All of the above are immediate context factors in cross-cultural negotiations.
Q5) What are the risks of using the "effect symphony" strategy?
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Page 19
Chapter 17: Managing Negotiation Impasses
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Q1) ____________- the degree to which the conflict divides people,such that they are "backed into a corner" and cannot escape without losing face.
Q2) What is the purpose of role reversal?
Q3) Pruitt,Parker and Mikolic propose that ____________ often occurs in response to persistent annoyance of one party by another.
Q4) According to Babcock,Wang and Loewenstein,the smaller the perceived differences between comparison groups,the greater the likelihood of a breakdown.
A)True
B)False
Q5) It is in the nature of intergroup negotiations that some adjustment of each party's own identity,or the rigor with which it is adhered to,must be made in order for negotiations to proceed productively.
A)True
B)False
Q6) Why is increasing the number of dimensions an effective tactic in creating integrative frameworks out of polarized positions.
Q7) How can parties expand the number of issues involved in a negotiation?
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Chapter 18: Managing Difficult Negotiations
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Q1) As a party managing a negotiation mismatch,you can respond using which of the following ways?
A) Ignore them.
B) Respond in kind.
C) Call them on it.
D) Offer to change to more productive methods.
E) Do all of the above.
Q2) Having conversations with difficult people is not easy.Describe three ways of preparation in anticipation of dealing with a difficult conversation.
Q3) Weeks suggests that there are three important elements to the successful management of difficult conversations: clarity,tone and ____________ phrasing.
Q4) An ultimatum is an attempt to induce compliance or force concessions from a presumably recalcitrant
A) group.
B) arbitrator.
C) opponent.
D) team member.
E) cooperator.
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Chapter 19: Third Party Approaches to Managing Difficult Negotiations
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Q1) As a method of third-party intervention,____________ is likely to lead to situations in which disputants are less than fully committed to following through,especially if they feel dissatisfied with the arbitrator's decision.
Q2) What attributes should a process consultant possess?
Q3) Moore states that in the premediation stages,the mediator is attempting to A) define issues and set an agenda.
B) establish relationships with the disputing parties.
C) generate options for settlement.
D) uncover hidden interests of the disputing parties.
E) In the premediation stages,the mediator is attempting to accomplish all of the above.
Q4) What is the biasing effect?
Q5) ____________ typically involves a structured process in which disputing parties have relatively free rein to present their stories,while the arbitrators decide the outcome,often imposing a resolution on the disputants.
Q6) What is the objective of process consultation?
Q7) The ____________ form of mediation strategy has a low concern for aspirations and a low perception of common ground.
Page 22
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Chapter 20: Best Practices in Negotiations
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Q1) For negotiators to remain sharp,they need to continue to practice the art and science of negotiation regularly.
A)True
B)False
Q2) Why is the BATNA an important source of power in a negotiation?
Q3) While negotiations do follow broad stages,they also _____________ and _____________ at irregular rates.
Q4) The best negotiators do not take time to analyze each negotiation after it has concluded.
A)True
B)False
Q5) The goal of most negotiations is achieving which of the following?
A) A final settlement
B) A valued outcome
C) An agreement per se
D) A value claiming goal
E) A value creating goal
Q6) What are the three things that negotiators can do to manage the perceptions of fairness and rationality proactively?
Page 23
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