Deck 4: Managing in a Global Environment

Question 1

The reality of today's borderless companies also means that consumers can easily identify from which country they are buying.

Answer 1

False

Question 2

ABC Manufacturing is in the domestic stage. It has its market potential open to the countries that border its home country.

Answer 2

False

Question 3

In today's world, every manager needs to think locally.

Answer 3

False

Question 4

Seeking cheaper sources of materials or labor offshore is called offshoring.

Question 5

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

Question 6

The multinational stage of corporate international development transcends any single home country. The ownership, control, and top management tend to be dispersed among several nationalities.

Question 7

With exporting, the corporation transfers its products for sale and its production facilities in foreign countries.

Question 8

A global mind-set and international experience are fast becoming prerequisites for managerial success.

Question 9

When a company builds a subsidiary from scratch in a foreign country it is called a greenfield venture.

Question 10

Today, the number of global or stateless corporations is decreasing and the awareness of national borders is increasing.

Question 11

The second stage in the process of globalization is the international stage, where the company usually adopts a multidomestic approach.

Question 12

A Greenfield venture is an entry strategy in which the organization is involved in managing its production facilities in a foreign country.

Question 13

Joint venture is the most risky type of direct investment.

Question 14

A form of direct investment is franchising.

Question 15

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 whereby allowing Nano to make products similar to CBA, it is engaging in a countertrade agreement.

Question 16

Countertrade is the barter of products for products rather than the sale of products for currency.

Question 17

To deal with the marketing of products in several countries individually, a company in the international stage often uses an international division.

Question 18

An estimated 55 percent of world trade is countertrade.

Question 19

Direct investing means that the company is involved in managing the productive assets, which distinguishes it from other entry strategies that permit less managerial control.

Question 20

An example of global sourcing is seen when Gap, Inc uses low-cost Caribbean labor to cheaply produce their clothing, and then finish off and sell their clothing in the United States.

Question 21

The social value of uncertainty avoidance is evident in countries like Japan which support beliefs that provide stability and conformity among its citizenry.

Question 22

Countries that value high power distances normally have cities that are geographically separated and so have the need to transport electrical energy over large distances.

Question 23

LDC's are less developed countries and tend to be found in the Southern Hemisphere including Africa, Asia and South America.

Question 24

The countries experiencing political, ethnic, and religious stability face the greatest threat of violence.

Question 25

The sub-divisions of the international environment are the economic, the sociocultural, and the legal-political environments.

Question 26

Market risk is defined as the risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments.

Question 27

Collectivism means a preference for a tightly knit social framework in which individuals look after one another and organizations protect their members' interests.

Question 28

Outsourcing is perhaps the most widespread approach to international involvement in China and India.

Question 29

Unfortunately, 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.

Question 30

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

Question 31

The turnover rate is the rate at which one country's currency is exchanged for another country's.

Question 32

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

Question 33

Infrastructure management is the management of business operations conducted in more than one country.

Question 34

In countries with strong masculine social values including Austria and Japan, both men and women subscribe to the dominant masculine value.

Question 35

A company's political risk includes riots, revolutions, civil disorders, and frequent changes in government.

Question 36

Changes in the exchange rates can have major implications for the profitability of international operations.

Question 37

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

Question 38

The criterion traditionally used to classify countries as developed or developing is per capita income.

Question 39

The fifth dimension of Hofstede's social values is preliminary-term orientation and extended-term orientation.

Question 40

Some economic environments of business include resource and product markets, language, religion, and per capita income.

Question 41

Social values greatly influence organizational functioning and management styles.

Question 42

The European Union brings greater trade liberalization in goods, information, technological developments, and services.

Question 43

A tendency to regard their own culture as superior and to downgrade other cultures reflects an attitude called geocentric.

Question 44

A high-context interaction requires more time because a relationship has to be developed, and trust and friendship must be established.

Question 45

German, Swiss, and North American cultures are among the high-context cultures.

Question 46

When an organization has a humanistic attitude, it values employees as an end in themselves.

Question 47

According to the GLOBE Project, a society with a high performance orientation places high emphasis on performance and rewards people for performance improvements and excellence.

Question 48

Ethnocentrism refers to a natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values.

Question 49

An organization developed for the purpose of eliminating tariffs in trading between Canada and the United States is called The North American Freedom of Tariffs Administration (NAFTA).

Question 50

Large international firms typically are called multinational corporations.

Question 51

When an organization has an instrumental attitude toward people it treats employees as a resource to be used.

Question 52

Linguistic pluralism occurs in countries like India where more than one language exist.

Question 53

Ethnocentrism refers to a natural tendency of people to regard their own culture as inferior to other cultures.

Question 54

According to Manager's Shoptalk in Chapter 4, the polite way to give your business card to a Japanese business person is when first meeting, presenting your card with both hands.

Question 55

According to Manager's Shoptalk in Chapter 4, being on-time for appointments is very important in Brazil.

Question 56

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

Question 57

According to the GLOBE Value Dimensions, Japan and Russia both have very high performance orientation.

Question 58

A multinational corporation typically receives more than 25 percent of its total sales revenues from operations inside the parent's home country.

Question 59

Fifteen member states of the EU have adopted the rupee, as a single European currency.

Question 60

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

Question 61

Geocentric companies are truly world-oriented and favor no specific country.

Question 62

The process of globalization typically passes through all of the following stages EXCEPT

A) domestic stage.
B) global stage.
C) international stage.
D) interdomestic stage.
E) multinational stage.

Question 63

Most managers, given the trend toward globalization, do not need preparation to work in foreign cultures.

Question 64

In which stage, market potential is limited to home country, with all production and marketing facilities located at home?

A) Domestic
B) International
C) Global
D) Multinational
E) Stateless

Question 65

Companies that think ____ have a competitive edge.

A) globally
B) regionally
C) nationally
D) strategically
E) "customers first"

Question 66

Global Dandelion, with marketing and production facilities located in many countries, is participating at what stage in the international arena?

A) International stage
B) Global stage
C) Domestic stage
D) Multinational stage
E) Interdomestic stage

Question 67

In the ____ stage a company usually adopts a multidomestic approach.

A) Global
B) Multinational
C) Stateless
D) International
E) Domestic

Question 68

Stateless stage is also referred to as the ____ stage.

A) multinational
B) global
C) multidomestic
D) international
E) domestic

Question 69

Culture shock refers to a person's ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.

Question 70

Today's companies compete in a ____.

A) growingly domestic
B) low-context culture
C) high-context culture
D) Greenfield economy
E) borderless world

Question 71

Cultural intelligence refers to a person's ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.

Question 72

There are three components to cultural intelligence: cognitive, emotional, and physical.

Question 73

Quality-cast Telecom with an international division would be participating in what stage of the international arena?

A) Domestic stage
B) International stage
C) Multinational stage
D) Global stage
E) Binational stage

Question 74

An MNC is managed as an integrated worldwide business system.

Question 75

Culture shock refers to the frustration and anxiety that result from constantly being subjected to strange and unfamiliar cues about what to do and how to do it.

Question 76

A(n) ____ and ____ experience are fast becoming prerequisites for managerial success.

A) domestic mind-set; leadership
B) global mind-set; international
C) open-mind; manufacturing
D) local mind-set; forecasting
E) family-oriented mind-set; leadership

Question 77

In Russia, employees often do not understand participatory decision making.

Question 78

In Japan, workers are motivated to satisfy the company.

Question 79

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

Question 80

Expatriates receive cross-cultural training that develops language skills and provides cultural and historical orientation.