Deck 3: Managing in a Global Environment

Question 1

Norway is a member of the European Union.

Answer 1

False

Question 2

Managers who want to get into a global market with minimal investment start with global sourcing.

Answer 2

True

Question 3

The United States,Canada,and Mexico are parties to the North American Free Trade Association.

Answer 3

True

Question 4

Licensing and franchising are similar approaches involving one organization giving another organization the right to use its brand name,technology,or product specifications in return for a lump sum payment or a fee usually based on sales.

Question 5

Managers with a polycentric attitude tend to view every foreign operation as difficult and hard to understand.

Question 6

A transnational organization reflects an ethnocentric attitude.

Question 7

The process of exporting involves acquiring products made abroad and selling them domestically.

Question 8

Americans tend to suffer from parochialism.

Question 9

The United States is an example of a country with low power distance.

Question 10

Only when a country's political/legal environment is unstable or revolutionary is it of concern to managers.

Question 11

Solidarity in the European Union is being undermined by protectionist pressures in some member countries.

Question 12

Mercosur is a trading group made up of 10 South American countries.

Question 13

The GLOBE framework for assessing cultures is similar to Hofstede's framework,but measures fewer dimensions.

Question 14

Managers with an ethnocentric attitude do not trust foreign employees with key decisions or technology.

Question 15

Strategic alliance is a partnership between an organization and a foreign company partner or partners in which both share resources and knowledge in developing new products or building production facilities.

Question 16

Mexico is an example of a Collectivistic nation.

Question 17

The polycentric attitude is a world-oriented view focusing on using the best approaches and people from around the globe.

Question 18

Licensing is primarily used by service organizations and franchising is primarily used by manufacturing organizations.

Question 19

A high uncertainty avoidance society is threatened by ambiguity and experiences high levels of anxiety.

Question 20

When the twelve original members formed the European union in 1992,the primary motivation was to reassert the region's economic position against the United States and Japan.

Question 21

A(n)________ attitude is the view that employees in the host country know the best practices for running their operations.

A)ethnocentric
B)polycentric
C)geocentric
D)regiocentric

Question 22

Bill Sanderson,a manager in a manufacturing firm in New York has a tendency to view the world only through his U.S.-based perspective.What can be deduced about his attitude?

A)He has an elitist attitude.
B)He has a polycentric attitude.
C)He has a parochialistic attitude.
D)He has a geocentric attitude.

Question 23

Monolingualism is one sign that a nation suffers from ________.

A)parochialism
B)ethnocentrism
C)polycentrism
D)geocentrism

Question 24

Which of the following is currently under negotiation by 34 countries in the Western Hemisphere?

A)African Union
B)Free Trade Area of the Americas
C)Mercosur
D)African Community

Question 25

A manager who wishes to be successful in international business should avoid a(n)________ attitude.

A)multicultural
B)multiracial
C)ethnocentric
D)geocentric

Question 26

Which of the following is a member of the Association of Southeast Asian Nations?

A)China
B)Japan
C)South Korea
D)Myanmar

Question 27

A(n)________ attitude is characterized by parochialism.

A)geocentric
B)acculturated
C)multilinguistic
D)ethnocentric

Question 28

The ________ was formed by twelve original members with the primary motivation of reasserting the region's economic position against the United States and Japan.

A)African Union
B)European Union
C)Central America Free Trade Agreement
D)Association of South-East Asian Nations

Question 29

In today's global environment,managers must have a(n)________ attitude in order to be successful.

A)ethnocentric
B)parochial
C)bigoted
D)geocentric

Question 30

Parochialism is a tendency to ________.

A)think highly of the foreign country in which the organization is doing business
B)focus on best approaches and people from around the globe
C)view the world solely through one's own eyes and perspectives
D)let employees in the host country figure out how best to do things

Question 31

The single European Union currency is called the ________.

A)krone
B)krona
C)pound
D)euro

Question 32

A global mind-set refers to attributes that allow a leader to be effective in cross-cultural environments.

Question 33

The Association of Southeast Asian Nations is a trading alliance of ________.

A)eight Southeast Asian nations and Japan
B)eight Southeast Asian nations
C)ten Southeast Asian nations
D)ten Southeast Asian nations and China

Question 34

How many members does The African Union have?

A)78
B)53
C)64
D)49

Question 35

Which of the following countries is a member of the European Union?

A)Ireland
B)Iceland
C)Norway
D)Switzerland

Question 36

Managers with a(n)________ attitude view every foreign operation as different and hard to understand.

A)geocentric
B)polycentric
C)ethnocentric
D)regiocentric

Question 37

What is the primary reason that the intensifying economic crisis in Europe threatens to impact the decisions of global managers in the United States and throughout the world?

A)The massive debt in Greece has caused Europe to slide into a new recession.
B)New measures by the European Commission to oversee banks and to monitor national budgets have been met with resistance by euro zone members.
C)The euro zone is a larger economic unit than the United States or China and is a major source of world demand for goods and services.
D)The inability to trim benefits and free up labor markets prevents the region from spurring any significant growth over the next decade.

Question 38

Nepal belongs to which of the following regional trade alliances?

A)Asia-Pacific Economic Cooperation
B)South Asian Association for Regional Cooperation
C)Common Wealth of Independent States
D)Association of Southeast Asian Nations

Question 39

An ethnocentric attitude ________.

A)prompts managers to have a global view and look for the best approaches and people regardless of origin.
B)is the belief that the home country has the best work approaches and practices
C)is the view that employees in the host country know the best work approaches and practices
D)gives a manager a much broader understanding of what it takes to manage in a global environment

Question 40

The North American Free Trade Agreement includes ________.

A)Mexico,Canada,and the United States
B)Canada,Mexico,and Costa Rica
C)the United States,Canada,and Honduras
D)Columbia,Mexico,and the United Sates

Question 41

Which of the following types of global organizations reflects the geocentric attitude?

A)multidomestic corporation
B)transnational organization
C)global company
D)regional organization

Question 42

The ________ is a Paris-based international economic organization whose mission is to help its 30 member countries achieve sustainable economic growth and employment and raise the standard of living in member countries while maintaining financial stability in order to contribute to the development of the world economy.

A)Organization for European Economic Cooperation
B)Organizational Council of Europe
C)Organization of European States
D)Organization for Economic Cooperation and Development

Question 43

An organization drops its organizational structure based on countries and reorganizes into industry groups.This is an example of the company becoming a(n)________.

A)ethnocentric company
B)polycentric organization
C)borderless organization
D)global company

Question 44

According to the text,which of the following is a typical definition of a multinational corporation?

A)It is a company that maintains operations in multiple countries.
B)It is a company that maintains franchises in multiple countries.
C)It is a company that has multiple home bases and manufacturing plants.
D)It is a company that pays corporate taxes in at least two countries.

Question 45

Which of the following is a feature of a multidomestic corporation?

A)decisions are taken in the home country
B)reflects an ethnocentric attitude
C)eliminates artificial geographic borders
D)has a decentralized management

Question 46

Transnational organizations are also known as ________.

A)ethnocentric organizations
B)polycentric organizations
C)borderless organizations
D)multidomestic organizations

Question 47

An organization decides to go international.Which of the following steps should it take to do so with a minimal investment?

A)It should indulge in global sourcing.
B)It should indulge in licensing.
C)It should indulge in franchising.
D)It should indulge in forming strategic alliances.

Question 48

The World Trade Organization evolved from which of the following?

A)Mercosur
B)General Agreement on Tariffs and Trade
C)Truman Doctrine
D)Marshall Plan

Question 49

Multidomestic corporations reflect the ________.

A)ethnocentric attitude
B)polycentric attitude
C)geocentric attitude
D)xenophobic attitude

Question 50

A ________ centralizes its management and other decisions in the home country.

A)global company
B)multidomestic corporation
C)multicultural company
D)multifaceted corporation

Question 51

The World Trade Organization has ________ member countries and ________ observer governments.

A)176; 50
B)188; 60
C)155; 29
D)161; 40

Question 52

Which of the following is a multinational corporation that tailors marketing strategies to the host country's unique characteristics?

A)borderless organization
B)global company
C)multidomestic corporation
D)transnational organization

Question 53

A global company reflects the ________.

A)regiocentric attitude
B)ethnocentric attitude
C)geocentric attitude
D)polycentric attitude

Question 54

Which of the following is the basic difference between multidomestic corporations and global companies?

A)Multidomestic corporations typically do business with more countries than global companies.
B)Multidomestic corporations are run by global companies but must be owned by a local,national company.
C)Multidomestic corporations decentralize management to the local country,while global companies centralize management in the home country.
D)Multidomestic corporations reflect an ethnocentric attitude,while global companies reflect a polycentric attitude.

Question 55

The forerunner of the Organization for Economic Cooperation and Development was the ________ that was formed in 1947 to administer American and Canadian aid under the Marshall Plan for the reconstruction of Europe after World War II.

A)Organization of European States
B)Organizational Council of Europe
C)Organization for European Economic Cooperation
D)Organization for European Investment

Question 56

The ________ decentralizes its management and other decisions to the local country.

A)multidomestic corporation
B)global company
C)transnational organization
D)borderless organization

Question 57

The International Monetary Fund is an organization of ________ countries that promotes international monetary cooperation and provides member countries with policy advice,temporary loans,and technical assistance to establish and maintain financial stability and to strengthen economies.

A)193
B)172
C)160
D)188

Question 58

The ________ is a group of five closely associated institutions,all owned by its member countries,that provides vital financial and technical assistance to developing countries around the world.

A)International Chamber of Commerce
B)World Bank Group
C)Organization for Economic Cooperation and Development
D)World Economic Forum

Question 59

Multidomestic corporations ________.

A)maintain operations in multiple countries,but do not allow managers in each country to make their own decisions
B)reflect ethnocentric attitudes
C)decentralize management and other decisions to the local country
D)attempt to replicate their domestic successes by managing foreign operations from the home country

Question 60

The World Trade Organization was formed in the year ________.

A)1995
B)1967
C)1971
D)1983

Question 61

A country that is assertive,believes in acquiring money and goods,and is competitive in nature is said to ________.

A)be a collectivist
B)have a high power distance
C)be achievement oriented
D)have a long-term orientation

Question 62

Why does the U.S.Federal Reserve's announcement of a far-reaching mortgage-bond buying program raise business concerns over the new monetary policy?

A)It affects the type of economic system that prevails in the United States.
B)It is expected to impact the rate of inflation over the next year.
C)Tax policies are likely to change as a result of the new program.
D)It threatens to weaken the dollar against foreign currencies.

Question 63

A country with ________ is comfortable with risks and is tolerant towards different behavior and opinions.

A)low uncertainty avoidance
B)short-term orientation
C)low power distance
D)performance orientation

Question 64

Which of the following two dimensions of the Global Leadership and Organizational Behavior Effectiveness program fit directly with Hofstede's dimensions?

A)power distance and uncertainty avoidance
B)power distance and gender differentiation
C)uncertainty avoidance and in-group collectivism
D)gender differentiation and in-group collectivism

Question 65

Which of the following is a method that companies might adopt in order to increase their direct foreign investment?

A)exporting
B)global sourcing
C)strategic alliances
D)licensees

Question 66

When an organization makes products domestically and sells them abroad,it indulges in ________.

A)importing
B)exporting
C)licensing
D)franchising

Question 67

Joint ventures are a type of ________.

A)licensee
B)franchisee
C)foreign subsidiary
D)strategic alliance

Question 68

________ is the extent to which a society encourages people to be tough,confrontational,and competitive rather than modest and tender.

A)Future orientation
B)Institutional collectivism
C)Assertiveness
D)Humane orientation

Question 69

Which of the following dimensions of the Global Leadership and Organizational Behavior Effectiveness program is similar to Hofstede's nurturing dimension?

A)in-group collectivism
B)humane orientation
C)future orientation
D)institutional collectivism

Question 70

Adam has been hired by an organization that has a partnership with a foreign company.Both the partners share resources and knowledge while developing new products.Adam's organization has formed a ________.

A)licensing company
B)franchising company
C)strategic alliance
D)foreign subsidiary

Question 71

Geert Hofstede's research found that countries varied on ________ dimensions of national culture.

A)eleven
B)five
C)seven
D)nine

Question 72

Which of the following arrangements involves the greatest commitment of resources and poses the greatest amount of risk?

A)exporting
B)franchising
C)foreign subsidiary
D)global sourcing

Question 73

A domestic firm and a foreign firm sharing the cost of developing new products or building production facilities in a foreign country constitute a ________.

A)franchising agreement
B)joint venture
C)foreign subsidiary
D)brokering agreement

Question 74

A ________ economy is one in which resources are primarily owned and controlled by the private sector.

A)free market
B)planned
C)command
D)technocratic

Question 75

A(n)________ is a specific type of strategic alliance in which the partners form a separate,independent organization for some business purpose.

A)equity strategic alliance
B)joint venture
C)global venture
D)nonequity strategic alliance

Question 76

________ is a measure of the degree to which people rely on social norms and procedures to alleviate the unpredictability of future events.

A)Power distance
B)Uncertainty avoidance
C)Achievement
D)Nurturing

Question 77

When an organization acquires products made abroad and sells them domestically,it indulges in ________.

A)global sourcing
B)licensing
C)importing
D)franchising

Question 78

The Global Leadership and Organizational Behavior Effectiveness program identified ________ dimensions on which national cultures differ.

A)five
B)seven
C)nine
D)eleven

Question 79

________ is the practice wherein an organization gives another organization the right to use its brand name,technology,or product specifications in return for a fee usually based on sales.

A)Global sourcing
B)Exporting
C)Subsidizing
D)Licensing

Question 80

The Global Leadership and Organizational Behavior Effectiveness program's ________ dimension is similar to Hofstede's achievement-nurturing dimension.

A)uncertainty avoidance
B)humane orientation
C)assertiveness
D)power distance