Deck 3: The Institutional Context of Multinational Management

Question 1

According to the model discussed in the text,the national context does which of the following?

A)Creates a resource pool
B)Influences the business environment and helps create induced factor conditions
C)Does not influence the business environment
D)Does not help create induced factor conditions

Answer 1

B

Question 2

Which of the following four religions are practiced by 71% of the world's population?

A)Jainism, Hinduism, Islam and Christianity
B)Hinduism, Christianity, Islam, and Sikhism
C)Christianity, Hinduism, Islam and Buddhism
D)Judaism, Christianity, Buddhism, and Islam

Answer 2

C

Question 3

Which of the following statements is TRUE regarding post-industrial societies?

A)Post-industrial societies are characterized by the dominance of manufacturing sectors.
B)Post-industrial societies tend to favor economic achievement.
C)Post-industrial societies tend to emphasize quality of life over economic achievement.
D)All of the above are true.

Answer 3

C

Question 4

The national context of a society is made up of

A)The national and business cultures of that society.
B)The social institutions of that society.
C)The national cultures and social institutions of that society.
D)The national cultures of that society.

Question 5

Which religion is considered to be timeless and eternal as it not based on a single founder or event?

A)Jainism
B)Christianity
C)Hinduism
D)None of the above

Question 6

Which of the following religions is based on the idea that craving and desires produce suffering but that it also possible to reach a stage where there is no longer any suffering?

A)Christianity
B)Judaism
C)Hinduism
D)Buddhism

Question 7

Pre industrial societies tend to have

A)Poor infrastructure and support.
B)Adequate infrastructure.
C)Favorable business conditions.
D)Government support.

Question 8

According to the text,which of the following statements regarding workers in formerly socialist economies is NOT TRUE?

A)Workers in formerly socialist economies are very trusting of each other
B)Workers in formerly socialist economies are generally reluctant to cooperate and work with each other
C)Workers in formerly socialist economies tend to favor personal relationships as key to success as opposed to their work performance
D)All of the above are true

Question 9

Which of the following statements is NOT TRUE regarding the experiences countries go through as they undertake market transitions from socialism to a more market based economy?

A)Drastic measures have to be taken to turn around formerly inefficient companies.
B)Managers' thinking have to be changed so that they can understand management functions.
C)Financial systems have to be left unregulated to accurately reflect market prices.
D)More workers have to be hired as companies find that they are understaffed.

Question 10

A society that is characterized by dominance of the manufacturing or secondary sectors is a/an

A)Industrial society.
B)Pre-industrial society.
C)Post-industrial society.
D)Market society.

Question 11

Which of the following religions is most practiced around the world?

A)Christianity
B)Buddhism
C)Hinduism
D)Islam

Question 12

Which of the following systems encourage the pursuit of collective goals such as social equality and solidarity?

A)Economic system
B)Market economy
C)Command economy
D)Capitalist economy

Question 13

Which of the following are key social institutions that are the most likely to influence the business environment of a country?

A)Economic system
B)Level of industrialization
C)Religion
D)All of the above

Question 14

Which of the following societies tend to determine occupations based on ascription (family background)and social status?

A)Industrial societies
B)Postindustrial societies
C)Socialist societies
D)Pre industrial societies

Question 15

A multinational manager carefully considers the list of festivals that are celebrated in a country in order to allow for holidays for his/her employees.Which social institution is most likely being considered here?

A)Industrialization
B)Market transition
C)Education
D)Religion

Question 16

In industrial societies,occupational placement is based on universalistic criteria such as

A)Age.
B)Religion.
C)Ascription.
D)Achievement.

Question 17

Which of the following religions has strict gender roles and also prohibits multinationals from paying or receiving interest on transactions?

A)Islam
B)Buddhism
C)Christianity
D)Jainism

Question 18

An economic system where production activities are decentralized to private owners who carry out these activities to make a profit is known as a

A)Capitalist economy.
B)Command economy.
C)Socialist economy.
D)Mixed economy.

Question 19

The cultural and economic changes that occur because of how production is organized and distributed in society refers to which concept?

A)religion
B)education
C)industrialization
D)dominant economic type

Question 20

A complex of positions,roles,norms,and values organizing relatively stable patterns of human resources to sustain viable social structures refers to which of the following?

A)Entrepreneurship
B)Social institutions
C)Comparative advantage
D)Strategy of the multinational company

Question 21

The movement from a socialist economy to a free market economy is also known as which of the following?

A)Market transition
B)Dominant economic type
C)Rapid industrialization
D)Government regulation

Question 22

The educational attainment scores

A)Are fairly similar for most countries.
B)Give an idea of the abundance of engineers for research and development purposes.
C)Reflect the mean years of schooling of people in any society.
D)All of the above are true of educational attainment scores.

Question 23

When industrialization is outward oriented,foreign exchange is

A)Encouraged and exporting is promoted.
B)Discouraged and exporting is not favored.
C)Not welcomed.
D)Used to fund governments in power.

Question 24

Postindustrial societies are typically characterized by the dominance of

A)Service and manufacturing sectors.
B)Service sectors.
C)Manufacturing sectors.
D)Agricultural sectors.

Question 25

According to the text,all of the following statements regarding education and educational systems around the world are TRUE except

A)Universal education enrolment is a goal of most countries.
B)Educational levels give an indication of the skill and productivity in any society.
C)The focus of educational systems around the world are fairly similar in terms of whether these systems emphasize academic or vocational aspects.
D)All of the above statements are true.

Question 26

The index of economic freedom may be used by multinationals to understand the nature of

A)market transitions
B)national culture
C)national context
D)governmental intervention

Question 27

An increased emphasis on quality of life over achievement oriented norms is typical of

A)Pre-industrial societies.
B)Industrial societies.
C)Post-industrial societies.
D)None of the above

Question 28

The degree to which people have privileged access to resources and positions within societies is

A)An indication of social inequality.
B)The same around the world.
C)Has no implications for multinationals.
D)All of the above

Question 29

When industrialization is inwardly oriented,local industries are promoted to satisfy the

A)Need to export.
B)Local population.
C)Requirements of multinational companies.
D)Domestic market and preserve foreign exchange.

Question 30

A multinational Human Resource Manager's decision to promote an individual results in wide discontent in the foreign subsidiary.The manager finds that although the promoted individual's performance is exemplary,most employees feel that the promotion should have gone to another individual who comes from an important family.The foreign subsidiary is most likely located in a/an

A)Industrial society.
B)Pre-industrial society.
C)Capitalist society.
D)Post-industrial society.

Question 31

When multinationals pay low wages or use child labor,they often receive

A)Support and praise.
B)Imprisonment.
C)Negative publicity.
D)Social responsibility.

Question 32

High rankings on the materialist index of some countries (e.g.,Hungary,India,Brazil)suggest that individuals in these countries are

A)Favor non material incentives.
B)Achievement oriented.
C)Motivated by non-monetary rewards.
D)Hinduism.

Question 33

In which of the following societies would people most likely prefer non-monetary incentives?

A)Industrial society
B)Pre-industrial society
C)Post-industrial society
D)None of the above

Question 34

The famous German Sociologist,Max Weber,argued that the Protestant work ethic

A)Led to the emergence of capitalism in Western Europe.
B)Led to the decline of capitalism in Western Europe.
C)Led to an acute distaste for the accumulation of wealth.
D)Led to the rise of socialism in Eastern Europe.

Question 35

In societies with high social inequality,resources are controlled by

A)A majority of people.
B)Very few people.
C)The Government.
D)Religious institutions.

Question 36

When a society expects that while men should work outside,and women ideally stay at home,this exhibits which of the following features?

A)Need for domestic products
B)Open societies
C)Growing levels of industrialization and economic development
D)Strict division of society by gender

Question 37

Which of the following has important implications for multinationals?

A)Religion
B)Education and economic systems
C)Industrialization and inequality
D)All of the above

Question 38

Which of the following statements about the GINI index is FALSE?

A)The GINI index represents the extent of inequality in people's income within a society
B)Ranges from 0 to 100
C)Is scaled so that 0 represents no inequality while 100 represents perfect inequality
D)Is scaled so that 100 represents no inequality while 0 represents perfect inequality

Question 39

One important issue relevant to multinationals, is the extent to which educational systems encourage students to

A)Be innovative and creative.
B)To expect a more ethical atmosphere.
C)Passively accept what is taught.
D)None of the above

Question 40

Which of the following is not an implication of educational systems as they apply to multinationals?

A)Educational level gives an indication of the skill and productivity of workers in any society.
B)Educational systems have implications for how labor force issues are approached and policies implemented.
C)Educational levels can be gauged to give an idea of what multinationals can expect.
D)All of the above are true

Question 41

How does the educational system influence the business environment in any country?

Question 42

What is social inequality? What implications does social inequality have for multinationals?

Question 43

Define social institutions.How do social institutions affect individuals and organizations?

Question 44

What are some implications of the market transitions that many formerly communist societies are experiencing? What are some major challenges facing multinationals as they try to motivate workers in these transition economies?

Question 45

What are some major philosophies of each of the world's major religions? Pick two religions and discuss how they affect the business environment.

Question 46

Define national context.Explain how national context influences organizations.

Question 47

Compare and contrast pre-industrial,industrial and post-industrial societies.Discuss the implications for multinationals of any one of these three types of economies.

Question 48

What are the three major types of economic systems? What are the effects of economic systems on how organizations are structured in societies?