INT 6200 Module 2 Knowledge Check |
Questions and Answers | 2026 Updated |
100% Correct.
1. A U.S. software firm expanding to Japan is advised to adapt its management style to
local norms. According to Hofstede's cultural dimensions, which dimension best
explains the Japanese preference for collective decision-making and group harmony?
A. High individualism
B. High power distance
C. High collectivism
D. Low uncertainty avoidance
Answer: C. High collectivism
Rationale: Japan scores high on collectivism, emphasizing group goals over individual
interests. High individualism (A) is typical of the U.S. High power distance (B) relates to
acceptance of hierarchy, not group harmony. Low uncertainty avoidance (D) is not
characteristic of Japan, which prefers structure.
2. When entering a foreign market with high political risk and stringent local content
requirements, which entry mode is most appropriate to minimize exposure while
maintaining control?
A. Wholly owned subsidiary
B. Joint venture with local partner
C. Exporting via local distributor
D. Franchising
Answer: B. Joint venture with local partner
Rationale: A joint venture shares risk and helps meet local content rules while retaining
some control. Wholly owned subsidiary (A) increases risk exposure. Exporting (C) and
franchising (D) offer less control and may not satisfy local content requirements.
Page 1 of 50
,3. A global e-commerce company must comply with the EU's General Data Protection
Regulation (GDPR) for its European customers. Which principle requires that
personal data be collected only for specified, explicit, and legitimate purposes?
A. Data minimization
B. Purpose limitation
C. Storage limitation
D. Integrity and confidentiality
Answer: B. Purpose limitation
Rationale: Purpose limitation means data must be collected for specified, explicit, and
legitimate purposes and not further processed in a incompatible manner. Data
minimization (A) limits collection to what is necessary. Storage limitation (C) restricts
retention period. Integrity and confidentiality (D) ensures security.
4. In global supply chain management, which strategy is most effective for mitigating
risks associated with reliance on a single supplier in a politically unstable region?
A. Just-in-time inventory
B. Supplier diversification
C. Vertical integration
D. Offshoring
Answer: B. Supplier diversification
Rationale: Supplier diversification spreads risk across multiple sources, reducing
dependency. Just-in-time (A) increases vulnerability to disruptions. Vertical integration (C)
may not reduce political risk if the integrated supplier is in the unstable region. Offshoring
(D) can increase risk if not managed.
Page 2 of 50
,5. A company uses a global standardization strategy for its IT infrastructure but faces
resistance from local subsidiaries. Which factor is most likely causing this resistance?
A. High economies of scale
B. Differences in local regulations
C. Uniform customer preferences
D. Centralized decision-making
Answer: B. Differences in local regulations
Rationale: Differences in local regulations often require adaptation, causing resistance to
standardization. Economies of scale (A) and uniform preferences (C) support
standardization. Centralized decision-making (D) is a feature, not a cause of resistance.
6. When evaluating a country's attractiveness for foreign direct investment, which of
the following is a key component of the political risk analysis?
A. Inflation rate
B. Government stability
C. GDP growth
D. Infrastructure quality
Answer: B. Government stability
Rationale: Government stability is a core political risk factor. Inflation (A) and GDP
growth (C) are economic indicators. Infrastructure quality (D) is an operational
consideration, not political risk.
Page 3 of 50
, 7. A multinational corporation is implementing a global ERP system. Which challenge
is most critical to address to ensure successful adoption across different countries?
A. Language translation
B. Local legal compliance
C. Hardware compatibility
D. Software licensing
Answer: B. Local legal compliance
Rationale: Local legal compliance, such as data privacy and tax laws, is critical for ERP
success. Language translation (A) is important but not the most critical. Hardware (C) and
licensing (D) are technical issues that can be managed.
8. In the context of global IT outsourcing, which risk is most associated with
transferring sensitive data to a vendor in a country with weak data protection laws?
A. Loss of intellectual property
B. Increased latency
C. Higher labor costs
D. Cultural miscommunication
Answer: A. Loss of intellectual property
Rationale: Weak data protection laws increase the risk of IP theft or unauthorized access.
Latency (B) is a technical issue. Labor costs (C) are typically lower in outsourcing
destinations. Cultural miscommunication (D) is a general risk but not specific to data
protection.
Page 4 of 50
Questions and Answers | 2026 Updated |
100% Correct.
1. A U.S. software firm expanding to Japan is advised to adapt its management style to
local norms. According to Hofstede's cultural dimensions, which dimension best
explains the Japanese preference for collective decision-making and group harmony?
A. High individualism
B. High power distance
C. High collectivism
D. Low uncertainty avoidance
Answer: C. High collectivism
Rationale: Japan scores high on collectivism, emphasizing group goals over individual
interests. High individualism (A) is typical of the U.S. High power distance (B) relates to
acceptance of hierarchy, not group harmony. Low uncertainty avoidance (D) is not
characteristic of Japan, which prefers structure.
2. When entering a foreign market with high political risk and stringent local content
requirements, which entry mode is most appropriate to minimize exposure while
maintaining control?
A. Wholly owned subsidiary
B. Joint venture with local partner
C. Exporting via local distributor
D. Franchising
Answer: B. Joint venture with local partner
Rationale: A joint venture shares risk and helps meet local content rules while retaining
some control. Wholly owned subsidiary (A) increases risk exposure. Exporting (C) and
franchising (D) offer less control and may not satisfy local content requirements.
Page 1 of 50
,3. A global e-commerce company must comply with the EU's General Data Protection
Regulation (GDPR) for its European customers. Which principle requires that
personal data be collected only for specified, explicit, and legitimate purposes?
A. Data minimization
B. Purpose limitation
C. Storage limitation
D. Integrity and confidentiality
Answer: B. Purpose limitation
Rationale: Purpose limitation means data must be collected for specified, explicit, and
legitimate purposes and not further processed in a incompatible manner. Data
minimization (A) limits collection to what is necessary. Storage limitation (C) restricts
retention period. Integrity and confidentiality (D) ensures security.
4. In global supply chain management, which strategy is most effective for mitigating
risks associated with reliance on a single supplier in a politically unstable region?
A. Just-in-time inventory
B. Supplier diversification
C. Vertical integration
D. Offshoring
Answer: B. Supplier diversification
Rationale: Supplier diversification spreads risk across multiple sources, reducing
dependency. Just-in-time (A) increases vulnerability to disruptions. Vertical integration (C)
may not reduce political risk if the integrated supplier is in the unstable region. Offshoring
(D) can increase risk if not managed.
Page 2 of 50
,5. A company uses a global standardization strategy for its IT infrastructure but faces
resistance from local subsidiaries. Which factor is most likely causing this resistance?
A. High economies of scale
B. Differences in local regulations
C. Uniform customer preferences
D. Centralized decision-making
Answer: B. Differences in local regulations
Rationale: Differences in local regulations often require adaptation, causing resistance to
standardization. Economies of scale (A) and uniform preferences (C) support
standardization. Centralized decision-making (D) is a feature, not a cause of resistance.
6. When evaluating a country's attractiveness for foreign direct investment, which of
the following is a key component of the political risk analysis?
A. Inflation rate
B. Government stability
C. GDP growth
D. Infrastructure quality
Answer: B. Government stability
Rationale: Government stability is a core political risk factor. Inflation (A) and GDP
growth (C) are economic indicators. Infrastructure quality (D) is an operational
consideration, not political risk.
Page 3 of 50
, 7. A multinational corporation is implementing a global ERP system. Which challenge
is most critical to address to ensure successful adoption across different countries?
A. Language translation
B. Local legal compliance
C. Hardware compatibility
D. Software licensing
Answer: B. Local legal compliance
Rationale: Local legal compliance, such as data privacy and tax laws, is critical for ERP
success. Language translation (A) is important but not the most critical. Hardware (C) and
licensing (D) are technical issues that can be managed.
8. In the context of global IT outsourcing, which risk is most associated with
transferring sensitive data to a vendor in a country with weak data protection laws?
A. Loss of intellectual property
B. Increased latency
C. Higher labor costs
D. Cultural miscommunication
Answer: A. Loss of intellectual property
Rationale: Weak data protection laws increase the risk of IP theft or unauthorized access.
Latency (B) is a technical issue. Labor costs (C) are typically lower in outsourcing
destinations. Cultural miscommunication (D) is a general risk but not specific to data
protection.
Page 4 of 50
