Deck 4: Managing in a Global Environment

Question 1

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

Answer 1

False

Question 2

For Australian businesses to have successful global management, which of the following statements provides the best advice?

A)Australians should continue to push for the use of English only.
B)Stick to your own customs to avoid embarrassing incidents.
C)Make sure foreign business people know you are Australian so they will speak to you in English.
D)Patronise foreign customs until your counterparts become comfortable with the Australian values.
E)Develop an understanding of cross-cultural differences.

Answer 2

E

Question 3

Managers with a polycentric attitude would view every foreign operation as different and hard to understand.

Answer 3

True

Question 4

Which of the following describes the current state of world use of languages?

A)Germans and Italians, unlike other Europeans, only speak their native language.
B)Americans tend to study many other languages in school.
C)Most Japanese begin learning English by their third year of high school.
D)Competitive advantage can only be maintained by speaking several languages.
E)Japanese is expected to be the most used international language by the year 2020.

Question 5

Geocentric views centre on ________.

A)a global view in the organisation's headquarters
B)a global view in the organisation's foreign work facilities
C)a global view in the organisation's headquarters and foreign work facilities
D)a manager's religious and spiritual perspective
E)regional trading and cooperation agreements

Question 6

Which of the following is the least favourable attitude for an Australian or New Zealand manager who wishes to be successful in international business?

A)multicultural
B)multi-country
C)geocentric
D)polycentric
E)ethnocentric

Question 7

Which of the following would be an example of a manager displaying a parochial attitude in a foreign environment?

A)enjoying the silence in a meeting with Japanese
B)learning how to drink alcohol with meals while negotiating with French counterparts
C)trying to negotiate a business deal in Japan without paying attention to local manners and customs
D)speaking Spanish in Mexico
E)reading about the Muslim faith prior to visiting Iraq

Question 8

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

A)ethnocentric
B)polycentric
C)geocentric
D)international
E)global

Question 9

Like Americans, Australians and New Zealanders tend to suffer from parochialism.

Question 10

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

Question 11

Which of the following events did NOT contribute to the involvement of Australian and New Zealand based companies in global operations?

A)Australia and New Zealand lost European markets due to the forming of the EU.
B)Australia and New Zealand have come of age.
C)Australia and New Zealand have not had multicultural education.
D)Australia and New Zealand have had an influx of immigrants from Southeast Asia.
E)Australia and New Zealand have recognised the need to develop economic ties with their immediate neighbours in the Asia-Pacific region.

Question 12

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

Question 13

Which of the following is an Australian global corporation?

A)ExxonMobil
B)Citigroup
C)Proctor & Gamble
D)BHP
E)Ford

Question 14

A geocentric attitude is characterised by parochialism.

Question 15

A(n)________ attitude is a parochialist belief that home-country practices are best.

A)ethnocentric
B)polycentric
C)geocentric
D)international
E)global

Question 16

A world-oriented view that focuses on using the best approaches and people from around the globe is referred to as ________.

A)ethnocentric
B)polycentric
C)geocentric
D)international
E)global

Question 17

Parochialism is ________.

A)acceptance of diverse points of view
B)a desire to leave one's own culture for a foreign culture
C)a tendency to view the world through a single perspective
D)recognition of diverse religious beliefs
E)acceptance of one dominant and one secondary 'correct' cultural view

Question 18

Ethnocentric views concentrate on their ________.

A)home country
B)host country
C)world orientation
D)racial orientation
E)countries that use the same language

Question 19

In a survey of 1250 manufacturing firms,
it was found that companies that operated in multiple countries had half the sales growth and the profitability of domestic firms.

Question 20

One reason for parochialism in Australia and New Zealand is that their students tend to seriously study ________ in school.

A)only English
B)only two languages
C)English and French
D)English and German
E)German and Spanish

Question 21

In the past, barriers to travel, employment, investment and trade prevented ________ companies from developing economic efficiencies.

A)Southeast Asian
B)Middle Eastern
C)United States
D)European
E)both A and B

Question 22

Successful global management requires ________.

A)rigid application of home-country practices
B)enhanced sensitivity to differences in national customs and practices
C)Americanisation of foreign managers
D)teaching English to foreign nationals
E)a 'hands-off' attitude

Question 23

The geocentric attitude is a ________ view.

A)nationalistic
B)world-oriented
C)culture-bound
D)franchise-based
E)best management approach

Question 24

The single European Union (EU)currency is called the ________.

A)franc
B)franc-mark
C)pound
D)Euro
E)EUC

Question 25

Mercosur is a trading group made up of South American countries.

Question 26

Successful global management requires an attitude that is best described as ________.

A)ethnocentric
B)parochial
C)polycentric
D)geocentric
E)duocentric

Question 27

Which of the following is NOT a member of the Southern Common Market?

A)Chile
B)Brazil
C)Mexico
D)Argentina
E)Bolivia

Question 28

It is hoped that, by 2015, a(n)________ economic community will be established allowing goods, skilled workers and capital to move freely among member countries.

A)NAFTA
B)the EU
C)ASEAN
D)GDP
E)the Economic Alliance of Nations

Question 29

In a short essay, define parochialism.Next discuss why parochialism is a problem for Australian managers and discuss reasons it is important to overcome parochialism in today's business environment.

Question 30

The Australian-New Zealand Closer Economic Relations (CER)is the only bilateral free trade agreement that Australia is a party to.

Question 31

Which country does NOT have a bilateral trade agreement with Australia?

A)Singapore
B)New Zealand
C)Thailand
D)Bahrain
E)United States

Question 32

The primary motivation for the creation of the Association of South East Asian Nations (ASEAN)was to accelerate economic progress and increase stability in the Asian region.

Question 33

All members of the EU have united under the same currency - the euro.

Question 34

Which of the following is NOT an advantage of a polycentric perspective?

A)extensive knowledge of foreign market
B)best people and work approaches used regardless of origin
C)more support from host government
D)extensive knowledge of foreign workplace
E)committed local managers with high morale

Question 35

Before the current round of regional trading alliances, what was international competition like?

A)Competition existed only within continents.
B)Competition was country against country.
C)Opportunities were defined by global trading alliances.
D)There was a general agreement to not charge tariffs.
E)both A and B

Question 36

________ management requires enhanced sensitivity to differences in national customs and practices.

A)Ethnocentric
B)Polycentric
C)Global
D)Parochial
E)Domestic

Question 37

The three original partners of NAFTA are the United States, Canada and Mexico.

Question 38

Which of the following is NOT yet a member of the European Union?

A)Greece
B)Ireland
C)Sweden
D)Turkey
E)Finland

Question 39

What is the goal of the World Trade Organization?

A)to eliminate border taxes, but increase border subsidies between the countries
B)to remove all barriers between countries
C)to help importers and exporters to conduct their business
D)to increase the profits of multinational companies
E)to prevent the exploitation of people and the environment worldwide

Question 40

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

A)Its membership, originally at 17 countries, has shrunk to its present 10 countries.
B)17 of the EU countries are currently using the euro.
C)Other European countries are avoiding relationships with the EU.
D)Though some progress has been made, the EU has basically been a failure.
E)The EU is seeking to discourage trade.

Question 41

International businesses have been around since about what date?

A)the 15th century
B)the 17th century
C)the 19th century
D)the 20th century
E)about 1955

Question 42

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.
B)Global companies are run by the parent company but must be owned by a local, national company.
C)Decision making in multidomestic corporations takes place locally rather than from the home country.
D)Multidomestic corporations pay more in taxes than transnational corporations.
E)There is basically no difference between the two forms of business.

Question 43

The Southern Common Market, made up of Chile, Brazil, Argentina, Paraguay, Uruguay and Bolivia, is also known as ________.

A)EU
B)Mercosur
C)NAFTA
D)SAFTA
E)Association of South American Countries

Question 44

The ________ organisation approaches global business from the geocentric approach.

A)multinational
B)transnational
C)polycentric
D)regional
E)multidomestic

Question 45

Which of the following types of international company reflects the polycentric attitude?

A)multidomestic
B)transnational
C)polycentric
D)regional
E)global company

Question 46

Transnational corporations run their business from their home country.

Question 47

Which of the following is NOT a feature of a multidomestic corporation?

A)Decision making takes place at the local level.
B)Nationals are typically hired to run operations in each country.
C)Marketing strategies are tailored to each country's culture.
D)Product strategies are tailored to each country's culture.
E)Products are manufactured only in the local country.

Question 48

In one of the early stages of an organisation going international, managers may enter international markets by license or franchise to another firm the right to use the organisation's brand name, technology or product specifications.

Question 49

Multidomestic corporations are known for ________.

A)ethnocentric attitudes
B)polycentric attitudes
C)centralising management and other decisions in the home country
D)multi-centric attitudes
E)having their holdings in one country

Question 50

The transnational corporation characterises the ethnocentric attitude towards the management of an organisation's global business.

Question 51

Multinational Corporations (MNCs)have only become commonplace since approximately what date?

A)mid 1960s
B)mid 1970s
C)1945
D)mid 1980s
E)1990

Question 52

Multinational corporations became commonplace in the mid 1960s.

Question 53

When organisations first go international, they often start with global sourcing.

Question 54

The process of exporting involves acquiring products made abroad and selling them domestically.

Question 55

Which of the following is a basic definition of a multinational corporation?

A)a company that maintains significant operations in at least two different countries
B)a company that maintains significant operations in at least two different countries and has multiple home bases
C)a broad term that relates to international companies that maintain operations in multiple countries
D)a company that does business and pays taxes in at least two countries
E)a transnational or borderless organisation but not a multidomestic corporation

Question 56

The trading bloc made of Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Cambodia, Laos and Myanmar is ________.

A)NAFTA
B)EU
C)TAFTA
D)ASEAN
E)Mercosur

Question 57

According to the textbook, the ________ approaches global business from a polycentric attitude.

A)multinational corporation
B)transnational corporation
C)polycentric corporation
D)borderless corporation
E)multidomestic organisation

Question 58

The primary motivation for joining the European Union was ________.

A)to reduce the economic competitiveness with other parts of the world
B)to increase the political power of European countries in worldwide peace negotiations
C)to control tax exemptions within Europe and encourage intermember cooperation in apprehending tax cheaters
D)to reduce union organisation that had threatened to make some countries less competitive
E)to reassert their economic power against America and Japan

Question 59

In a short essay, explain the differences among a multidomestic corporation, a global company and a borderless organisation.Include examples of companies for each of the types of organisations discussed.

Question 60

Multinational corporations maintain operations in multiple countries.

Question 61

According to the textbook, most organisations start doing business globally by ________.

A)exporting and importing
B)licensing and franchising
C)strategic alliances
D)joint ventures
E)global sourcing

Question 62

Which of the following would most likely occur last in an organisation's global evolution?

A)cross-cultural training of the company's managers
B)giving a foreign organisation the right to use its name and operating methods
C)sending domestic employees on regular foreign business trips
D)hiring foreign brokers to represent the organisation's product line
E)creating a joint venture with suppliers around the globe

Question 63

The legal-political environment is an important factor of managing in a foreign environment.

Question 64

Which of the following would you consider to be a true statement?

A)Creating a foreign subsidiary usually occurs at an early stage of an organisation's global evolution.
B)A joint venture is a specific type of strategic alliance.
C)Strategic alliances and foreign subsidiaries are essentially the same.
D)Licensing is primarily used by service organisations.
E)Global sourcing is another term for importing.

Question 65

Which of the following is NOT listed by your textbook as an area of significant challenge for an Australian manager working in a foreign country?

A)legal environment
B)economic environment
C)cultural environment
D)religious environment
E)political environment

Question 66

Australia and New Zealand have traditionally produced highly tradeable products for the international market.

Question 67

Which of the following factors does NOT represent a difficulty that Australian and New Zealand companies face when they try to go international?

A)great distance from foreign markets
B)small domestic markets make expansion difficult
C)low tradability of products
D)small company size
E)both A and B

Question 68

Compared to many other countries, changes to the Australian and New Zealand legal-political environment are considered ________.

A)very fast and effective
B)fast, but not efficient
C)radical
D)slow
E)fast, especially when power between the parties shifts

Question 69

________ present(s)the greatest risk to an organisation going international.

A)Joint ventures
B)Strategic alliances
C)Licensing
D)Foreign subsidiaries
E)Franchising

Question 70

Only when a country's legal-political environment is unstable or revolutionary is it of concern to managers.

Question 71

When a company expands internationally, importing and exporting represent a more significant global investment than which of the following?

A)licensing
B)franchising
C)global sourcing
D)strategic alliance
E)joint ventures

Question 72

In an attempt to extend international activity, a company might export and import more.These steps usually require ________.

A)minimal investment and minimal risk
B)conducting business in a polycentric manner
C)the establishment of strategic alliances
D)abnormal operations for a geocentric organisation
E)a large injection of capital

Question 73

Which of the following is usually found in the final stage of an organisation's global evolution?

A)exporting its products to other countries
B)cross-culturally training its managers
C)establishing strategic alliances with partners
D)licensing another firm to use its brand name
E)global sourcing for materials and labour

Question 74

Three of the most obvious economic concerns for Australian and New Zealand managers doing business in foreign countries are ________.

A)fluctuating currency exchange rates, inflation rates and tax policies
B)fluctuating currency exchange rates, tax policies and pay rates for foreign employees
C)tax policies, pay rates for foreign employees and banking system variances
D)inflation rates, banking system variances and fluctuating currency exchange rates
E)pay rates for foreign employees, banking system variances and delays to accounts receivable

Question 75

Joint ventures are also termed ________.

A)licenses
B)franchises
C)foreign subsidiaries
D)subsidiaries
E)strategic alliances

Question 76

An early, initial stage of a company going international is called global sourcing, which means ________.

A)exporting its products to other countries
B)cross-culturally training its managers
C)hiring foreign brokers to represent the organisation's product line
D)sending domestic employees on regular foreign business trips
E)purchasing cheaper materials or labour from around the world

Question 77

Compared to many other countries, the Australian and New Zealand legal-political environment is considered ________.

A)radical
B)stable
C)unstable
D)fixed
E)static

Question 78

Which of the following characterises an intermediate stage of an organisation's global evolution?

A)setting up a foreign subsidiary
B)sending domestic employees on regular foreign business trips
C)hiring foreign brokers to represent the organisation's product line
D)management contracts with a foreign firm to produce its products
E)franchising

Question 79

In a short essay, explain the stages an organisation proceeds through when going international.

Question 80

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

A)franchising agreement
B)joint venture
C)foreign subsidiary
D)brokering agreement
E)production agreement