1. You are in the process of developing a global compensation structure. Which of the following factors does NOT affect the strategy pursued ?

A) Laws and regulations
B) Cultural differences
C) Economic factors
D) Career management system



2. After two years of selling mostly prototypes of their product, built to customer specifications, a company is beginning to commercialize this product. The current average cost to build the product is $1000 per unit, where $600 is the bill of materials and $400 id the direct labor. The company currently produces at the run rate of the 100 good units per week from 200 total units processed. The firm currently sells the product at $1500 per unit, without volume discounts. One of the major pressures from their customers is to cut costs by 40% within one year. Which of the following strategies should the firm pursue first based on the following research data ? Please assume there is infinite customer demand.

A) Acquiring a company overseas in order to manufacture the product, which would reduce costs by 75% in Year 1 (5% probability of the success )
B) Developing a turnkey operation that reduces costs by 65% in Year 1 (30% probability of the success )
C) Participate in a joint venture for new R&D that would help reduce costs by 50% by improving yields in Year 1 (20% probability of success )
D) Licensing out the technology to a corporation in another country that would reduce costs by 55% in Year 1 (15% probability of success )



3. A U.S. based high tech company has just built a new manufacturing operation in Beijing, China. Over the last two months, they have been trying to recruit skilled and unskilled labor to fill the new open positions. In addition, the company has decided to create 2 international assignments to fill identified skill gaps.One position is for a Senior Manufacturing Manager/Director to get the operation up and running within 4 more months meeting identified planned outs and the second position is for a Senior Manufacturing Engineer to deal with any engineering issues when developing the process. When trying to identify potential internal candidates for the Senior Manufacturing Engineering position through the skills inventory, which of the following skills is the MOST relevant ?

A) Adaptability with working with different people from different cultures
B) Ability to speak Chinese
C) Past international experience
D) Strong technical understanding of manufacturing designated product line



4. You have decided to outsource the moving service for all expatriate assignments. After an individual is chosen and has accepted an international assignment, you provide all necessary contact information to both parties with specific deadlines. Which of the following steps is the next step in managing the vendor ?

A) Monitoring operations for continual improvement
B) Specifying objectives to the vendor
C) Ensuring regular communication and reporting between parties
D) Periodic management reports



5. What is a disadvantage of the divisional departmentalization ?

A) Focus is too narrow
B) Inefficient use of human resources
C) Disregards broader organizational considerations
D) Unity of command is lost