Question 1

Define the different categories of organizations by extent of international involvement.

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Question 2

Explain the three basic managerial attitudes toward the operation of multinational corporations. What are their advantages and disadvantages?

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Question 3

What can managers in multinational corporations do to influence employees?

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Question 4

Why do managers make foreign investments? What are the risks involved in this?

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Question 5

What can managers do to ensure that management action taken across national borders is ethical?

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Question 6

A(n) ________ organization considers national borders to be inconsequential to its operations, with ownership, control, and management being from many different countries.
A) international
B) multinational
C) pan-national
D) transnational
E) domestic

Accepted Answer

A transnational organization operates beyond national borders and has ownership, control, and management from various different countries. Multinational organizations may have operations in multiple countries but are typically still organized by country of origin, and pan-national organizations do not necessarily have ownership and control from multiple countries. International organizations can also operate across national borders but may not have the same degree of ownership and control from multiple countries as a transnational organization. Domestic organizations operate solely within one country.

Question 7

Transnational organizations are also called ________.
A) global corporations
B) multinational corporations
C) international corporations
D) domestic corporations
E) pan-national corporations

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A) global...

Question 8

According to Hofstede, what are the five basic dimensions of culture?

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Question 9

When a company provides an expatriate with information on how to survive the difficulties of adjusting to a new culture, the company is providing training in ________.
A) logistic information
B) cultural application
C) cultural adaptation
D) cultural profiling
E) repatriation

Accepted Answer

When a company provides an expatriate with information on how to survive the difficulties of adjusting to a new culture, it is giving them training in cultural adaptation. This type of training prepares the individual for the social customs, values, and beliefs of the new culture they will be living and working in. It helps them to be more effective in their job and build positive relationships with local employees and stakeholders.

Question 10

Discuss the three types of organizational members found in multinational corporations.

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Question 11

What are the six stages of multinationalization? What activities does a company perform at each stage?

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Question 12

STL began as a manufacturer and retailer of customized apparel and accessories. Customers could choose their specifications online, and STL would produce and deliver the products to customers' homes. Initially, its market was limited to the U.S., but the company has begun to receive enquiries from overseas customers from many other countries. However, STL does not have the financial resources or the confidence to set up operations in other countries. Which methods could the CEO use to meet this overseas demand, taking into account the company's weaknesses?

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Question 13

Explain the four components of international plans for multinational corporations.

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Question 14

Evelyn has worked for the Boston branch of Clarity Systems for the past ten years. She is being transferred to head the Madrid office of her company. Since the transfer was a hurried one, there was no time to train Evelyn in the specifics of doing business in Spanish culture. As soon as she arrived in Madrid, Evelyn had to conduct negotiations for the renewal of several supplier contracts. One of the suppliers gave her an expensive watch, saying that it was a custom of the country to give business associates gifts. Evelyn is unsure whether she should accept the gift as it seems like a bribe. Which of the following ethical guidelines will help Evelyn determine whether or not to accept the gift?
A) respecting core human rights
B) respecting local traditions
C) determining right from wrong by examining context
D) using ethnocentrism
E) increasing power distance

Accepted Answer

The ethical guideline of determining right from wrong by examining context will help Evelyn evaluate the situation and decide whether accepting the gift is appropriate in the specific business culture of Spain. It allows her to consider the cultural and social norms of the country and determine whether it is customary or inappropriate for business associates to exchange gifts. This approach is more context-specific than using either core human rights or ethnocentrism, and it balances the need to respect local traditions with the need to maintain ethical standards in business dealings. Increasing power distance is not relevant to this situation.

Question 15

During ________ training, the expatriates learn about the specific organizational roles that they are required to perform in the foreign country.
A) application
B) logistical information
C) cultural adaptation
D) cultural profiling
E) repatriation

Accepted Answer

Application training focuses on teaching expatriates about their specific job roles and responsibilities in the foreign country.

Question 16

When a company provides an expatriate with basic information about life in a foreign country, such as personal safety, who to call in an emergency, and how to write a check, the company is providing training in ________.
A) cultural profiling
B) cultural adaptation
C) cultural application
D) logistical information
E) repatriation

Accepted Answer

The company is providing logistical information, which refers to practical information about living and working in a foreign country, such as banking and safety information. Cultural profiling involves analyzing and understanding the cultural differences between countries, cultural adaptation refers to the process of adapting to cultural differences, cultural application refers to applying knowledge of cultural differences to specific situations, and repatriation refers to the process of returning an employee to their home country after a foreign assignment.

Question 17

The ________ organization transcends any single home country, with ownership, control, and management being from many different countries.
A) pan-national
B) transnational
C) multinational
D) international
E) domestic

Accepted Answer

A transnational organization operates beyond national boundaries, with ownership, control, and management coming from different countries. Pan-national, multinational, and international organizations involve multiple countries, but ownership, control, and management can come from a single home country. Domestic organizations operate only within a single country.

Quiz 5: Managing in the Global Arena

Define the different categories of organizations by extent of international involvement.

Explain the three basic managerial attitudes toward the operation of multinational corporations. What are their advantages and disadvantages?

What can managers in multinational corporations do to influence employees?

Why do managers make foreign investments? What are the risks involved in this?

What can managers do to ensure that management action taken across national borders is ethical?

A(n) ________ organization considers national borders to be inconsequential to its operations, with ownership, control, and management being from many different countries.

Transnational organizations are also called ________.

According to Hofstede, what are the five basic dimensions of culture?

When a company provides an expatriate with information on how to survive the difficulties of adjusting to a new culture, the company is providing training in ________.

Discuss the three types of organizational members found in multinational corporations.

What are the six stages of multinationalization? What activities does a company perform at each stage?

Explain the four components of international plans for multinational corporations.

During ________ training, the expatriates learn about the specific organizational roles that they are required to perform in the foreign country.

When a company provides an expatriate with basic information about life in a foreign country, such as personal safety, who to call in an emergency, and how to write a check, the company is providing training in ________.

The ________ organization transcends any single home country, with ownership, control, and management being from many different countries.