Deck 4: Managing in a Global Environment

Question 1

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

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

Answer 1

B

Question 2

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

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

Answer 2

B

Question 3

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

Answer 3

B

Question 4

A potential advantage of the ethnocentric attitude is ________.

A)greater support from host governments
B)tighter control of operations
C)increased flexibility
D)improved balance between local and global outcomes

Question 5

A(n)________ attitude toward managing focuses on using the best approaches and people from around the globe.

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

Question 6

Cadbury Schweppes PLC is a large beverage and candy producer based in London,England.They distribute many well-known brands in Canada,and trust their Canadian managers to make key decisions about what's best for the Canadian market.Cadbury Schweppes's global perspective is best described as ________.

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

Question 7

Managers with an ethnocentric attitude concentrate on their ________.

A)home country
B)host country
C)world orientation
D)regional orientation

Question 8

Parochialism is best defined as ________.

A)an acceptance of diverse points of view
B)a tendency to view the world through one's own perspective
C)recognition of diverse religious beliefs
D)a tendency to view other cultures as superior to one's own

Question 9

Which of the following is a key drawback of the polycentric attitude?

A)tighter control
B)inflexibility
C)duplication of work
D)social and political backlash

Question 10

Which of the following is a key drawback of the ethnocentric attitude?

A)simpler structure
B)tighter control
C)inflexibility
D)reduced efficiency

Question 11

The fact that Jeff expects most Asians to be able to speak English suggests a narrow view of the world known as ________.

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

Question 12

Jennifer and James feel that people in foreign countries will not have the skills,expertise,knowledge,or experience to write,sell,or install the software.They have a(n)________ attitude.

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

Question 13

Bill Sanderson,a manager in a manufacturing firm in Toronto,has a tendency to view the world solely through his Canadian 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 14

A potential advantage of the geocentric attitude is ________.

A)simpler structure
B)tighter control of operations
C)increased efficiency
D)best people and work approaches used regardless of origin

Question 15

A potential advantage of the polycentric attitude is ________.

A)greater support from host governments
B)tighter control of operations
C)increased efficiency
D)duplication of work

Question 16

McCain Foods of New Brunswick,Canada,is the world's largest producer of frozen french fries.They sell frozen food products in the U.S.,Britain,France,Germany,and more than 100 other countries around the world.For McCain Foods,________ is the home country,and ________ is a host country.

A)the U.S.; Canada
B)Canada; Britain
C)Britain; France
D)France; Germany

Question 17

A(n)________ attitude is characterized by parochialism.

A)geocentric
B)nonlinguistic
C)globalistic
D)ethnocentric

Question 18

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

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

Question 19

Which of the following is a key drawback of the geocentric attitude?

A)simpler structure
B)tighter control of operations
C)need for local and global knowledge
D)social and political backlash

Question 20

McCain Foods of New Brunswick,Canada,is the world's largest producer of frozen french fries.They have manufacturing operations on six continents and employ more than 20,000 people worldwide.They hire the best people from around the globe and have a world-oriented business philosophy.McCain's global perspective is best described as ________.

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

Question 21

What is the primary reason that the intensifying economic crisis in Europe threatens to impact the decisions of global managers in the U.S.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 U.S.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 22

Key advantages of the polycentric attitude include a simpler structure and tighter control.

Question 23

To help explain the main advantages of regional trade alliances,you will point out that EU member countries now have ________.

A)government subsidies
B)nationalistic policies
C)protected industries
D)a single market

Question 24

A drawback of the geocentric perspective is that it is inflexible.

Question 25

By establishing their company's operations in Canada,Jennifer and James hoped that an existing regional trade agreement would help them to avoid tariffs in ________.

A)Japan and Germany
B)South America
C)Mexico and the U.S.
D)the European Union and the U.S.

Question 26

In a short essay,describe and discuss the differing global attitudes that influence managerial and organizational behaviour.

Question 27

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

Question 28

The European Single Market is ________.

A)another name for the European Union
B)another name for EFTA
C)a free-trade zone consisting of EFTA and the European Union
D)a free-trade zone limited to the original 12 EU members

Question 29

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

Question 30

In response to the politicians' comments about NAFTA,you will point out that many economists would ________.

A)agree because only the U.S.has achieved a stronger economy through NAFTA
B)agree because only Mexico has achieved a stronger economy through NAFTA
C)agree because both the U.S.and Mexico have achieved stronger economies through NAFTA,while Canada has not
D)disagree because Canada,the U.S.,and Mexico have all achieved stronger economies through NAFTA

Question 31

The Global Financial Crisis of 2008 originated with ________.

A)the debt problems in Greece and the EU bailout
B)the inability of WTO to enforce global trade rules
C)the U.S.banks granting subprime mortgages
D)the failure of IMF to enforce global financial regulations

Question 32

Which of the following is a trading alliance of Southeast Asian nations?

A)NAFTA
B)MERCOSUR
C)APEC
D)ASEAN

Question 33

The WTO is a global organization that evolved from ________.

A)NAFTA
B)GATT
C)the Maastricht Treaty
D)EEC

Question 34

The European Free Trade Association (EFTA)is ________.

A)another name for the European Union
B)part of a free trade zone with the European Union
C)operating independently outside the European Union
D)looking to form a trade deal with Canada

Question 35

Which of the following statements is TRUE regarding the European Union?

A)Its membership,originally at 12 countries,now stands at more than twice that number.
B)The member countries have unanimously chosen to adopt a single currency.
C)Other European countries are avoiding trade relationships with the European Union.
D)The European Union was originally formed to help European countries reassert their economic position against the strength of the U.S.and Japan.

Question 36

As a starting point you explain that the European Union covers a population base consisting of 7 percent of the world population.It currently has ________ member countries.

A)15
B)27
C)18
D)32

Question 37

Parochialism is the tendency to view the world narrowly through one's own perspective.

Question 38

Which of the following is a multilateral trading system formed in 1995?

A)WTO
B)GATT
C)IMF
D)ASEAN

Question 39

Key advantages of an ethnocentric attitude include more support from host governments and committed local managers with high morale.

Question 40

Through the creation of the European Union,member countries now have ________.

A)more government subsidies
B)increased nationalistic policies
C)protected industries
D)a single market

Question 41

EFTA is a trading block that forms a combined free-trade zone with the EU.

Question 42

The focus on decentralized management in multidomestic corporations reflects a(n)________ attitude.

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

Question 43

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 do.
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)Global companies decentralize management to the local country,while multidomestic corporations centralize management in the home country.

Question 44

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

Question 45

NAFTA agreement has increased Canada's exports to Mexico fourfold.

Question 46

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

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

Question 47

Through the creation of the EU,each member country now has increased border controls,nationalist policies,and protected industries.

Question 48

The General Agreement on Tariffs and Trade (GATT)was signed in 1992 to create the EU.

Question 49

Which of the following types of multinational corporations reflect the geocentric attitude?

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

Question 50

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

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

Question 51

Which of the following is an MNC that tailors marketing strategies to the host country's unique characteristics?

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

Question 52

Member countries of the EU have unanimously chosen to adopt the euro as their official currency.

Question 53

The primary reason for the creation of the EU was to allow Europe to assert its position against the industrial strengths of the U.S.and Japan.

Question 54

Transnational organizations are focused on ________.

A)increasing efficiency and effectiveness
B)reinforcing artificial operational divisions
C)maintaining geographical boundaries
D)eliminating industry divisions

Question 55

Before you conclude your speech,you intend to explain how the WTO operates as ________.

A)a unilateral trading system
B)the only global organization that deals with the rules of trade among nations
C)the only global organization that monitors and promotes competition between nations
D)the only global organization dedicated to protecting the rights of workers in multinational corporations

Question 56

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 has an international head office.

Question 57

African Union was formed because the economies in Africa are stagnating.

Question 58

You also plan to discuss other regional trading alliances such as the one in Southeast Asia called ________.

A)Mercosur
B)ASEAN
C)APEC
D)the Southern Zone Common Market

Question 59

The focus on centralized management in global companies reflects a(n)________ attitude.

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

Question 60

Multidomestic corporations ________.

A)maintain operations in multiple counties but do not allow managers in each country to make their own decisions
B)utilize ethnocentric attitudes in financial decisions but favour polycentric views in human resources issues
C)decentralize management decision-making to local countries
D)eliminate structural divisions that impose artificial geographical barriers

Question 61

Which international expansion strategy did McDonald's Canada use when it opened restaurants in Russia?

A)exporting
B)franchising
C)strategic alliance
D)licensing

Question 62

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)outsourcing partnership

Question 63

Montreal-based Bombardier manufactures aircraft and rail transportation equipment.They employ more than 60,000 workers in production facilities on five continents.All major management decisions continue to be made in their world headquarters in Canada.Bombardier is best described as a ________ corporation.

A)global
B)transnational
C)borderless
D)multidomestic

Question 64

IBM is the world's largest information technology company with more than 300,000 employees in 170 countries.It once had a country-based structure but reorganized into industry groups to compete more effectively in the global marketplace.IBM is best described as a ________ organization.

A)transnational
B)multidomestic
C)virtual
D)global

Question 65

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 66

Joint ventures are a type of ________.

A)franchise
B)foreign subsidiary
C)strategic alliance
D)outsourcing partnership

Question 67

Which of the following definitions best describes a transnational organization?

A)a company that maintains significant operations in at least two countries
B)a company that maintains significant operations in at least two countries but is managed from a base in the home country
C)a company that maintains significant operations in at least two countries but decentralizes management to each country
D)a company that maintains significant operations in at least two countries but organizes by industry to reduce geographical barriers

Question 68

A joint venture is a specific type of ________.

A)licensing agreement
B)franchise
C)foreign subsidiary
D)strategic alliance

Question 69

When Montreal-based Bell Canada contracted with Sitel India and two other Indian companies to provide technical support to Canadian customers,they were using which international strategy?

A)franchising
B)global sourcing
C)importing
D)establishing foreign subsidiaries

Question 70

McDonald's Canada,GM Canada,and IBM Canada are all examples of U.S.________ operating in Canada.

A)joint ventures
B)strategic alliances
C)transnational ventures
D)subsidiaries

Question 71

Transnational organizations are also known as ________.

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

Question 72

From a legal-political standpoint,some large corporations have postponed doing business with China and other Asian countries due to ________.

A)political interference
B)unstable inflation rates
C)fluctuating currency exchange rates
D)unfavourable tax policies

Question 73

If Jeff's company decided to open another company in Taiwan but manage it from its headquarters in Canada,it would be considered a ________.

A)transnational corporation
B)multidomestic corporation
C)strategic alliance
D)global corporation

Question 74

Multidomestic corporations ________.

A)maintain significant operations in multiple countries but manage them from a base in the home country
B)organize by industry to eliminate the artificial geographic barriers between countries
C)decentralize decision making to managers hired in the host countries
D)do not attempt to manage foreign operations from the host country

Question 75

Borderless organizations ________.

A)reflect an ethnocentric attitude
B)reflect a polycentric attitude
C)arrange structures that reduce artificial geographical barriers
D)manage their global operations from a base in their home country

Question 76

Borderless organizations approach global business with a(n)________ attitude.

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

Question 77

A domestic firm and a foreign firm sharing the cost of developing new products or building production facilities would be called a ________.

A)franchising agreement
B)strategic alliance
C)foreign subsidiary
D)transnational venture

Question 78

Which of the following international expansion strategies involves the lowest level of risk and investment?

A)exporting
B)franchising
C)licensing
D)strategic alliances

Question 79

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

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

Question 80

Which of the following international strategies involves the highest level of risk and investment?

A)exporting
B)franchising
C)strategic alliances
D)foreign subsidiary