Question 1

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

Accepted Answer

Infrastructure refers to the physical and organizational structures and facilities needed for the operation of a society or enterprise. In the context of the economy, infrastructure includes roads, bridges, airports, seaports, power and communication lines, water supply systems, and other necessary facilities that enable economic activities to occur.

Question 2

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

Accepted Answer

Polycentric companies place more emphasis on the countries in which they operate (host countries) rather than their home country. They strive to adapt to local cultures and practices rather than imposing their own way of doing things.

Question 3

An MNC is managed as an integrated worldwide business system.

Accepted Answer

An MNC (Multinational Corporation) operates as an integrated worldwide business system, coordinating its activities and resources across various countries to achieve its goals and objectives. This model allows MNCs to leverage their global footprint to gain competitive advantages, share knowledge and resources, and optimize their operations.

Question 4

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

Accepted Answer

The basic management functions of planning, organizing, leading, and controlling are universal and apply to all types of companies, regardless of where they operate. These functions are essential in achieving organizational goals and ensuring the success of the company, both domestically and internationally. However, the implementation of these functions may vary depending on the specific cultural and environmental factors of the international market.

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.

Accepted Answer

The statement is true. Uncertainty avoidance refers to a culture's tolerance or avoidance of ambiguity, uncertainty, and risk. Countries with high uncertainty avoidance, such as Greece, tend to value stability, conformity, and tradition, and rely on rules, laws, and rituals to reduce uncertainty and minimize anxiety.

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.

Accepted Answer

Different cultures have different expectations and norms when it comes to business practices, and it is important for managers to understand and adapt to these differences when doing business globally. Failure to recognize these differences can lead to misunderstandings, miscommunications, and ultimately, failed business ventures.

Question 7

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

Accepted Answer

A greenfield venture involves building a new facility or starting a new business from scratch in a foreign market, which can involve high costs and risks. A joint venture or acquisition may be less costly and less risky options for direct investment.

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.

Accepted Answer

Licensing refers to a business arrangement where one company gives another company permission to manufacture its product for a specified payment; it does not primarily concern the international division of labor for cost reduction.

Question 9

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

Accepted Answer

A low-context culture is a culture in which communication is explicit and to the point, focusing on the message itself rather than the context or relationship between the speaker and listener. Personal relationships may still be important, but they are not the primary focus of communication.

Question 10

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

Accepted Answer

This statement is not always true. While some international business firms may have headquarters in less developed countries for access to cheap labor, many others are headquartered in developed countries for a variety of reasons, such as access to capital, political stability, and market proximity.

Question 11

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

Accepted Answer

China and the United States have historically attracted more foreign direct investment (FDI) than India, making them the top destinations for foreign businesses looking to invest.

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.

Accepted Answer

Collectivism emphasizes the importance of community and group solidarity.

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.

Accepted Answer

The misery index, which is calculated by adding the unemployment rate to the inflation rate, can fluctuate significantly over time due to economic changes, crises, or improvements. There is no universal trend suggesting a consistent decrease in misery index figures for almost every country from the beginning of the century to 2010. Economic conditions vary greatly by country and time period.

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.

Accepted Answer

This scenario describes a licensing agreement, where Harbor Trades is allowing Nano Technologies to use its intellectual property in exchange for a fee or royalty, not exporting. Exporting involves the sale of goods and services to a foreign country.

Question 15

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

Accepted Answer

With advancements in technology and removal of trade barriers, businesses operate on a global scale, with a more unified approach to trade and commerce.

Question 16

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

Accepted Answer

The European Union's goal is indeed to create a strong single market for the benefit of its consumers. This is achieved through the elimination of trade barriers and the promotion of the free movement of goods, services, capital, and people within the EU.

Question 17

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

Accepted Answer

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.

Accepted Answer

This is an example of global outsourcing, where a company uses low-cost labor in another country to produce its product and then imports it back to its home country for sale.

Question 19

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

Accepted Answer

A high humane orientation means that a society values kindness, empathy, and welfare of others over tough and competitive behavior.

Question 20

Large international firms typically are called multinational corporations.

Accepted Answer

Multinational corporations (MNCs) operate in multiple countries and are commonly referred to as large international firms.

Quiz 3: Managing in a Global Environment