Question 1

Certain industries, like telecommunications and financial services, are especially suited for being midsize and local, so these companies are not trying to become bigger or merge with other big companies.

Accepted Answer

The last 20 years have seen a surge in mergers.Certain industries,like oil,telecommunications,automobiles,financial services,and pharmaceuticals for instance,aren't suited to being midsize,let alone small and local,so companies in these industries are trying to become bigger and cross-border.The means for doing so is to merge with other big companies.

Question 2

Sally has seen such great interest in her scented candles that she has decided to start her own small business selling them. One benefit that Sally's company can achieve with the Internet and the World Wide Web is that her organization can operate globally, helping her get started more easily because she can put products on a website and sell worldwide, with the advantages of distribution and scope that large companies have.

Accepted Answer

Sally's company can indeed operate globally and reach customers worldwide with the help of the Internet and the World Wide Web. This can provide her with distribution and scope advantages similar to those of large companies.

Question 3

Learning how to enhance the American global image of being a "caring, wonderful person" is part of becoming a world citizen.

Accepted Answer

Becoming a world citizen includes learning how not to be an "ugly American." Americans "are seen throughout the world as an arrogant people,totally self-absorbed and loud," says Keith Reinhard,former head of advertising conglomerate DDB Worldwide.

Question 4

Great civilizations have had the characteristic of a strong economy, despite their communication problems.

Accepted Answer

The hallmark of great civilizations has been their great systems of communications.

Question 5

While in Italy, Tony was able to communicate important information to George, his business partner, via e-mail. Later that day, Tony remarked to George about how helpful it was that he was able to return to their office in New York in less than nine hours. This "shrinking" of time and space as air travel and the electronic media have made it easier for people around the globe to communicate with one another defines the global village.

Accepted Answer

The passage states that air travel and electronic media have "shrunk" time and space, allowing people to communicate easily across the globe, which is a defining characteristic of the global village. Therefore, the statement is true.

Question 6

Keith Reinhard of the nonprofit group Business for Diplomatic Action said, "Americans are seen throughout the world as compassionate, caring people, who are helpful and soft spoken."

Accepted Answer

Americans "are seen throughout the world as an arrogant people,totally self-absorbed and loud," says Keith Reinhard,former head of advertising conglomerate DDB Worldwide who is leading an effort to reverse that through a nonprofit group called Business for Diplomatic Action.

Question 7

Don, the CEO of Pie Technology, announced in a conference call the corporate strategic goal of operations in several countries. When this long-term vision by Don is realized, it would qualify Pie Technology as a multinational corporation.

Accepted Answer

A multinational corporation (MNC) is a company that operates in multiple countries and has a global approach to business. Since Don's announcement indicates a strategic goal of operations in several countries, this would qualify Pie Technology as an MNC if achieved, making the statement true.

Question 8

A nonprofit organization with operations in several states is a multinational organization.

Accepted Answer

A multinational organization operates in multiple countries, not just multiple states within the same country.

Question 9

Paul McDonald, executive director of recruitment firm Robert Half Management Resources, said, "Anyone with international experience will have a leg up, higher salary, and be more marketable."

Accepted Answer

Paul McDonald stated that those with international experience will have an advantage in terms of salary and marketability.

Question 10

Before you travel and conduct business abroad, spend some time learning about other patterns of interpersonal communication, such as in Afghanistan, where a man does not ask another man about his wife.

Accepted Answer

It is important to research and understand cultural differences in communication before conducting business in another country. For example, in Afghanistan it is considered inappropriate for a man to ask another man about his wife, therefore understanding this cultural norm can prevent misunderstandings or offense during business interactions.

Question 11

One advantage of small companies over large organizations is the ability to make decisions more slowly and methodically if needed, which gives small companies a global advantage in terms of time and distance over large companies.

Accepted Answer

The statement is incorrect. Small companies actually have an advantage in making decisions more quickly and agilely compared to large organizations, which tend to have more bureaucratic processes and hierarchical structures that can slow down decision-making. This can give small companies a competitive edge in adapting to changes in the market and responding to customer needs faster.

Question 12

The process whereby managers are able to utilize Microsoft Excel to improve the record-keeping related to marketing their products and services is known as e-commerce.

Accepted Answer

The process described in the statement is not e-commerce, which refers to the buying and selling of goods and services online. It is simply using a tool (Microsoft Excel) to improve record-keeping.

Question 13

Becoming a world citizen includes being global in focus, but thinking local, learning what's appropriate behavior, knowing your field, and becoming at least minimally skilled in the language of the local country.

Accepted Answer

Becoming a global citizen requires being aware of worldwide issues, but also being familiar with and respectful of local customs, and having a basic understanding of the local language.

Question 14

The availability of goods, people, and money to be able to move more freely worldwide is known as the flexible economy.

Accepted Answer

The availability of goods, people, and money to move more freely worldwide is known as globalization or global economy, not the flexible economy.

Question 15

A negative effect of global economic interdependency is the movement, or outsourcing, of formerly well-paying jobs overseas as companies seek cheaper labor costs.

Accepted Answer

Global economic interdependency can lead to outsourcing of jobs, as companies seek cost savings by moving operations to countries with cheaper labor. This can have a negative impact on workers and communities in the home country.

Question 16

Susan, a teacher, is interested in helping children in other countries learn how to read. She has formed an international nonprofit organization that travels to several nations in Africa to donate books and work in schools as tutors. Susan's organization is an example of a multinational corporation.

Accepted Answer

Although Susan's organization operates in multiple countries, it is a nonprofit organization and not a corporation. Additionally, multinational corporations typically engage in business activities across international borders for profit, whereas Susan's organization is focused on philanthropy and education.

Question 17

ABC Investments has been advising customers financially since 1902. In 1989, ABC was able to open an office in Berlin, after the Berlin Wall came down. Later, ABC opened several offices in Asia when several Asian countries opened their economies to foreign investors, then as governments began to deregulate their economies, ABC was able to allow their global customers to move their money freely around the world. ABC Investment's experience is evidence of the three historic global changes which Rosabeth Moss Kantor of the Harvard Business School spoke of.

Accepted Answer

The passage clearly states that ABC Investment's experience is evidence of the three historic global changes mentioned by Rosabeth Moss Kantor, implying that the statement is true.

Question 18

Foreign companies have built plants in the United States, slowly revitalizing parts of industrial America, with foreign direct investment only at 5% of America's GDP. In addition, companies based overseas provide jobs for about 1% of U.S. workers.

Accepted Answer

Foreign firms are building plants in the United States,revitalizing parts of industrial America.Indeed,foreign direct investment makes up 15% of the country's gross domestic product (total value of all goods and services).Companies based overseas provide jobs for approximately 10% of the U.S.workforce.

Question 19

Developing a more globally interdependent system defines nationalism.

Accepted Answer

Nationalism typically refers to a sense of pride, loyalty, and devotion to one's own country or nation, often to the exclusion of others. Developing a more globally interdependent system would likely go against the principles of nationalism.

Question 20

Technology, such as e-mail and videoconferencing, works best to show commitment to customers and handle joint ventures and mergers.

Accepted Answer

Frequent travel may still be needed because personal encounters are essential."There is no substitute for face time," says a BusinessWeek article.Yes,technologies such as smartphones,e-mail,and videoconferencing make it easier to connect with others,superficially at least."But," says an investment banker,"in a global world you have to get in front of your employees,spend time with your clients,and show commitment."

Quiz 4: Global Management: Managing Across Borders