Deck 3: Managing in a Global Environment

Question 1

A country's physical facilities that support economic activities make up its infrastructure.

Answer 1

True

Question 2

The primary emphasis of polycentric companies is on their home countries.

Answer 2

False

Question 3

An MNC is managed as an integrated worldwide business system.

Answer 3

True

Question 4

The basic management functions of planning,organizing,leading,and controlling are the same whether a company operates domestically or internationally.

Question 5

The social value of uncertainty avoidance is evident in countries like Greece,which supports beliefs that provide stability and conformity among its citizenry.

Question 6

Many U.S.managers fail to realize that the values and behaviors that typically govern how business is done in the United States do not translate to the rest of the world.

Question 7

The least costly and least risky direct investment is called a greenfield venture.

Question 8

Licensing means engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies.

Question 9

A low-context culture is a culture in which communication is used to enhance personal relationships.

Question 10

Because of cheap labor,most international business firms are headquartered in the less developed countries of Asia and South America.

Question 11

For the past several years,foreign companies have invested more business in India than they spent anywhere else in the world.

Question 12

Collectivism means a preference for a tightly knit social framework in which individuals look after one another and organizations protect their members' interests.

Question 13

The estimated 2010 misery index figures suggest significantly less misery for almost every country as compared to figures at the beginning of the century.

Question 14

When Harbor Trades,a Korean-based company,makes resources including technology,managerial skills,and patent and trademark rights available to Nano Technologies,a Russian company,thereby allowing Nano to make products similar to Harbor,it is engaging in exporting.

Question 15

Business has become a unified,global field as trade barriers fall,communication becomes faster and cheaper,and consumer tastes converge.

Question 16

The goal of the European Union is to create a powerful single market system for Europe's millions of consumers.

Question 17

According to the GLOBE Project,gender differentiation refers to the extent to which a society maximizes gender role differences.

Question 18

An example of global outsourcing is seen when Gap,Inc.uses low-cost Caribbean labor to cheaply produce its clothing,and then finishes off and sells its clothing in the United States.

Question 19

A high humane orientation means that a society encourages toughness,assertiveness,and competitiveness.

Question 20

Large international firms typically are called multinational corporations.

Question 21

Which of the following countries possesses a high performance orientation?

A)Israel
B)Sweden
C)Taiwan
D)Russia
E)Venezuela

Question 22

All of the following are cultural dimensions as defined by the GLOBE Project,except:

A)assertiveness.
B)gender differentiation.
C)social collectivism.
D)humane orientation.
E)masculinity.

Question 23

Your company is interested in producing and marketing a line of coffee that will penetrate the Chinese market.Your firm is willing to supply the equipment,products,product ingredients,trademark,and standardized operating system to entrepreneurs.What type of strategy are you going to use?

A)Wholly owned foreign affiliate
B)A greenfield venture agreement
C)A franchise
D)An export agreement
E)Barter trade

Question 24

The management of business operations conducted in more than one country is called:

A)global management.
B)international management.
C)outsourcing management.
D)planning management.
E)domestic management.

Question 25

A company's risk of loss of assets,earning power,or managerial control due to politically based events or action by host government is referred to as:

A)MFN.
B)political risk.
C)tariffs.
D)political instability.
E)terrorism.

Question 26

The Digitec company has recently decided to design and manufacture a laptop that retails for under $50,in an effort to make information technology available to people in places like rural Africa and rural India.This is known as what type of strategy?

A)Bottom of the pyramid strategy
B)Skimming the barrel strategy
C)Cream of the crop strategy
D)Top of the peak strategy
E)Base price strategy

Question 27

Which of the following countries possesses a high degree of assertiveness?

A)Spain
B)Sweden
C)Japan
D)Iceland
E)Switzerland

Question 28

Most American shoppers support the movement of certain jobs overseas if it benefits them in the form of lower prices.

Question 29

The Maquiladora industry along the Texas-Mexico border on the Mexico side uses cheap labor for assembling products.This lowers the price for U.S.consumers and is an example of:

A)licensing.
B)joint venture.
C)outsourcing.
D)franchising.
E)a greenfield venture.

Question 30

Language,values,religion,and education all describe which dimension in the international environment?

A)Economic
B)Legal
C)Political
D)Sociocultural
E)Technological

Question 31

Your grocery store in India is having trouble getting the local farmers to supply you with the proper produce.This is a problem with India's:

A)product market.
B)resource market.
C)infrastructure.
D)economy.
E)power distance.

Question 32

As a first step into international business,which two countries are most companies going to today?

A)Russia and Japan
B)Sweden and Germany
C)China and India
D)Brazil and Philippines
E)Indonesia and Brazil

Question 33

Austria's cultural preference is for achievement,heroism,assertiveness,and material success.This would be considered:

A)power distance.
B)individualism.
C)masculinity.
D)ethnocentrism.
E)collectivism.

Question 34

Jana has a high tolerance for the unstructured,the unclear,and the unpredictable.She can best be described as having:

A)high uncertainty avoidance.
B)low uncertainty avoidance.
C)high degree of individualism.
D)low degree of individualism.
E)low level of power distance.

Question 35

The extent to which trade and investments,information,social and cultural ideas,and political cooperation flow between countries is called:

A)standardization.
B)industrialization.
C)globalization.
D)internationalism.
E)linguistic pluralism.

Question 36

A.R.C.is a large non-profit humanitarian aid organization that has been forced to pull out of several African markets in recent years due to civil wars and large-scale violence.This demonstrates which frequently cited problem for international companies?

A)Political instability
B)Communist governments
C)Economic instability
D)Political risk
E)Financial risk

Question 37

A foreign terrorist kidnaps your firm's marketing VP while the VP is in the host country.This is a harsh example of:

A)economic development.
B)infrastructure.
C)political risk.
D)international law.
E)social risk.

Question 38

Which of the following refers to engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country?

A)Franchising
B)Licensing
C)Market entry strategy
D)Outsourcing
E)Activity

Question 39

_____ place an emphasis on a worldwide perspective.

A)Polycentric companies
B)Geocentric companies
C)Ethnocentric companies
D)Regiocentric companies
E)Domestic companies

Question 40

Go RVing,a U.S.company,built a subsidiary from scratch in England.This is an example of:

A)franchising.
B)greenfield venture.
C)joint venture.
D)exporting.
E)licensing.

Question 41

The legal-political environment includes:

A)infrastructure.
B)tariffs and taxes.
C)religion.
D)exchange rates.
E)demographic profile.

Question 42

List five of the countries that make up the European Union (EU).

Question 43

_____ means engaging in the international division of labor so that manufacturing can be done in countries with the cheapest sources of labor and supplies.

Question 44

The _____ is the single European currency that has replaced 12 national currencies.

Question 45

In a(n)_____,people use communication primarily to exchange facts and information.

Question 46

List three examples of a country's infrastructure.

Question 47

Riots,revolutions,civil disorders,and frequent changes in government that affect the operations of an international company shows _____ in a country.

Question 48

A multinational corporation typically receives at least _____ percent of its total sales revenues from outside the parent's home country.

Question 49

The _____ dimension of the global mind-set means knowing about the global environment and global business,mentally understanding how cultures differ,and having the ability to interpret complex global changes.

Question 50

MNCs that are oriented toward the markets of individual foreign host countries are considered _____.

Question 51

Kim,a Japanese expatriate working in Denmark,tends to use communication primarily to build personal social relationships.She feels that relationships and trust are more important than business.Kim is surprised that her business associates in Denmark do not share the same views.Based on this information,Kim most likely grew up in what type of culture?

A)Human-oriented
B)Passive
C)Assertive
D)Low-context
E)High-context

Question 52

How many nations signed on for negotiation when GATT was created in 1947?

A)15
B)23
C)28
D)40
E)57

Question 53

_____ stands for preference for achievement,heroism,assertiveness,work centrality (with resultant high stress),and material success.

Question 54

Which of the following has a goal to guide the nations of the world toward free trade and open markets?

A)GATT
B)WTO
C)GLOBE
D)EU
E)NAFTA

Question 55

An alliance begun in 1957 to improve economic and social conditions among its members,?it has evolved into the 27-nation _____.

Question 56

_____ is the criterion traditionally used to classify countries as developed or developing.

Question 57

The economy of _____,already the seventh largest in the world,is projected to move into fourth place by 2050.

Question 58

A country that places emphasis on fairness and values kindness would be described by the GLOBE Project as high in _____.

Question 59

_____ (objects,taboos,holidays)is a sociocultural factor in the international environment.

Question 60

Which organization originated and supports the idea of small businesses operating on a global level?

A)GLOBE
B)EU
C)NAFTA
D)ASEAN
E)GATT

Question 61

Identify and briefly explain at least two key factors in economic,sociocultural,and political-legal environments that affect an organization.

Question 62

Explain NAFTA.

Question 63

Briefly describe the social characteristic of ethnocentrism and explain how this can have an impact on the success of an international manager.

Question 64

Briefly explain the difference between high power distance and low power distance.

Question 65

Direct investing means that the company is involved in managing the productive assets in a foreign country.There are three options for direct investing.Name and compare these three options.