Deck 4: Managing in a Global Environment

Question 1

With exporting,the corporation transfers its products for sale and its production facilities in foreign countries.

Answer 1

False

Question 2

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

Answer 2

False

Question 3

To deal with the marketing of products in several countries individually,a company in the international stage often uses an international division.

Answer 3

True

Question 4

When a company builds a subsidiary from scratch in a foreign country it is called a greenfield venture.

Question 5

Outsourcing is perhaps the most widespread approach to international involvement in China and India.

Question 6

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 whereby allowing Nano to make products similar to CBA,it is engaging in a countertrade agreement.

Question 7

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 8

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

Question 9

Joint venture is the most risky type of direct investment.

Question 10

ABC Manufacturing is in the domestic stage.It has its market potential open to the countries that border its home country.

Question 11

Seeking cheaper sources of materials or labor offshore is called offshoring.

Question 12

Infrastructure management is the management of business operations conducted in more than one country.

Question 13

Countertrade is the barter of products for products rather than the sale of products for currency.

Question 14

The multinational stage of corporate international development transcends any single home country.The ownership,control,and top management tend to be dispersed among several nationalities.

Question 15

The second stage in the process of globalization is the international stage,where the company usually adopts a multidomestic approach.

Question 16

An estimated 55 percent of world trade is countertrade.

Question 17

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

Question 18

A form of direct investment is franchising.

Question 19

Direct investing means that the company is involved in managing the productive assets,which distinguishes it from other entry strategies that permit less managerial control.

Question 20

In today's world,every manager needs to think locally.

Question 21

Social values greatly influence organizational functioning and management styles.

Question 22

Some economic environments of business include resource and product markets,language,religion,and per capita income.

Question 23

The criterion traditionally used to classify countries as developed or developing is per capita income.

Question 24

A company's political risk includes riots,revolutions,civil disorders,and frequent changes in government.

Question 25

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

Question 26

According to the GLOBE Project,a society with a high performance orientation places high emphasis on performance and rewards people for performance improvements and excellence.

Question 27

LDC's are less developed countries and tend to be found in the Southern Hemisphere including Africa,Asia and South America.

Question 28

Unfortunately,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 29

Market risk is defined as the risk of loss of assets,earning power,or managerial control due to politically based events or actions by host governments.

Question 30

Countries that value high power distances normally have cities that are geographically separated and so have the need to transport electrical energy over large distances.

Question 31

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

Question 32

The sub-divisions of the international environment are the economic,the sociocultural,and the legal-political environments.

Question 33

The countries experiencing political stability face the greatest threat of violence.

Question 34

The fifth dimension of Hofstede's social values is preliminary-term orientation and extended-term orientation.

Question 35

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

Question 36

According to Manager's Shoptalk in Chapter 4,the polite way to give your business card to a Japanese business person is when first meeting,presenting your card with both hands.

Question 37

According to Manager's Shoptalk in Chapter 4,being on-time for appointments is very important in Brazil.

Question 38

In countries with strong masculine social values including Austria and Japan,both men and women subscribe to the dominant masculine value.

Question 39

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

Question 40

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

Question 41

A tendency to regard their own culture as superior and to downgrade other cultures reflects an attitude called geocentric.

Question 42

An organization developed for the purpose of eliminating tariffs in trading between Japan and the United States is called The North American Freedom of Tariffs Administration (NAFTA).

Question 43

Large international firms typically are called multinational corporations.

Question 44

Linguistic pluralism occurs in countries like India where more than one language exist.

Question 45

A multinational corporation typically receives more than 25 percent of its total sales revenues from operations inside the parent's home country.

Question 46

A high-context interaction requires more time because a relationship has to be developed,and trust and friendship must be established.

Question 47

Cultural intelligence refers to a person's ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.

Question 48

When an organization has an instrumental attitude toward people it treats employees as a resource to be used.

Question 49

German,Swiss,and North American cultures are among the high-context cultures.

Question 50

Culture shock refers to a person's ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.

Question 51

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

Question 52

According to the GLOBE Value Dimensions,Japan and Russia both have very high performance orientation.

Question 53

An MNC is managed as an integrated worldwide business system.

Question 54

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

Question 55

Fifteen member states of the EU have adopted the rupee,as a single European currency.

Question 56

Ethnocentrism refers to a natural tendency of people to regard their own culture as inferior to other cultures.

Question 57

Geocentric companies are truly world-oriented and favor no specific country.

Question 58

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

Question 59

When an organization has a humanistic attitude,it values employees as an end in themselves.

Question 60

Ethnocentrism refers to a natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values.

Question 61

Whereas China is strong in software services,India is a rising power in manufacturing.

Question 62

Globalization reached its peak in the 1970s,and is decreasing at a gradual rate.

Question 63

One advantage to acquiring a wholly owned foreign affiliate is that the company that acquires it would then have complete control.

Question 64

The term top of the pyramid refers to the more than four billion people who earn the least,as defined by per capita income.

Question 65

Companies that think ____ have a competitive edge.

A)globally
B)regionally
C)nationally
D)strategically
E)"customers first"

Question 66

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 67

High cultural intelligence requires that a manager be open and receptive to new ideas and approaches.

Question 68

In a recent Fortune magazine poll,68 percent of Americans say other countries benefit the most from free trade.

Question 69

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 70

Brazil is known to have a young,vibrant population and a rapidly growing middle class that is eager to experience the finer things in life.

Question 71

In which stage,market potential is limited to home country,with all production and marketing facilities located at home?

A)Domestic
B)International
C)Global
D)Multinational
E)Stateless

Question 72

High-context cultures include Asian and Arab countries,whereas low-context cultures tend to be American and Northern European.

Question 73

Culture shock refers to the frustration and anxiety that result from constantly being subjected to strange and unfamiliar cues about what to do and how to do it.

Question 74

Today's companies compete in a ____.

A)growingly domestic
B)low-context culture
C)high-context culture
D)Greenfield economy
E)borderless world

Question 75

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

Question 76

In India,it is not uncommon for social media companies such as Facebook and Twitter to be required by law to comply with requests to take down content considered incendiary by government entities.

Question 77

A manager's reality is that isolation from international forces is entirely possible.

Question 78

The global stage of corporate international development is also referred to as the stateless stage.

Question 79

There are three components to cultural intelligence: cognitive,emotional,and physical.

Question 80

The United States has the largest mobile phone market in the world.