Deck 3: Managing in a Global Environment

Question 1

Different laws and regulations make doing business a challenge for international firms.

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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's, it is engaging in exporting.

Answer 3

False

Question 4

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

Question 5

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

Question 6

Large international firms typically are called multinational corporations.

Question 7

Ethnocentrism makes managers downgrade or dismiss their home cultures.

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.

Question 9

The social value of uncertainty avoidance is evident in countries like Greece, which supports beliefs that promise certainty and conformity among its citizenry.

Question 10

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 11

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

Question 12

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

Question 13

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.

Question 14

The revolutionary wave of protests known as the Arab Spring has created a tumultuous environment for businesses operating in the region.

Question 15

Hofstede's value dimensions sprang from research conducted on more than 100,000 IMB employees in 40 countries.

Question 16

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

Question 17

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

Question 18

Every manager today needs to think globally because the whole world is a source of business threats and opportunities.

Question 19

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

Question 20

A multinational corporation (MNC) is managed as an integrated worldwide business system.

Question 21

The bottom-of-the-pyramid (BOP) concept proposes that corporations can alleviate poverty and other social ills, as well as make significant profits, by selling to the world's poorest people.

Question 22

Countries with individualist values include the United States, Canada, and Great Britain.

Question 23

The extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries is called _______.

A)standardization
B)industrialization
C)globalization
D)internationalism
E)linguistic pluralism

Question 24

As of February 2016, over one hundred countries were members of the World Trade Organization (WTO).

Question 25

India is the industry leader in information technology (IT) outsourcing.

Question 26

Which of the following refers to engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country?

A)Franchising
B)Licensing
C)Market-entry strategy
D)Outsourcing
E)Activity

Question 27

MNCs rarely demonstrate centralization of management.

Question 28

Political 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.riots.

Question 29

__________ companies place an emphasis on a worldwide perspective.

A)Polycentric
B)Geocentric
C)Ethnocentric
D)Regiocentric
E)Domestic

Question 30

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

Question 31

Which of the following is another word for global outsourcing?

A)Exporting
B)Greenfield
C)Franchise
D)Offshoring
E)Barter trade

Question 32

International travel, foreign study, and learning a foreign language are key activities for developing a global mind-set.

Question 33

The maquiladora industry along the Texas-Mexico border on the Mexico side uses cheap labor for assembling products.This lowers the price for U.S.consumers and is an example of ______.

A)licensing
B)joint venture
C)outsourcing
D)franchising
E)a greenfield venture

Question 34

One popular type of partnership in which a company shares costs and risks with another firm is known as _______.

A)franchising
B)a greenfield venture
C)a joint venture
D)exporting
E)licensing

Question 35

High power distance means that people expect equality in power.

Question 36

An MNC typically receives more than 50 percent of its total sales revenue from operations outside the parent's home country.

Question 37

Business trends in one country rarely, if ever, influence trends in another country.

Question 38

Digitec Company has recently decided to design and manufacture a laptop that retails for under $50, in an effort to make IT available to people in places like rural Africa and rural India.This is known as which of the following types of strategy?

A)Bottom of the pyramid
B)Skimming the barrel
C)Cream of the cro 
D)Top of the pea 
E)Base price

Question 39

Many companies first get involved internationally by exporting.

Question 40

As a first step into international business, which two countries are most companies going to today?

A)Russia and Japan
B)Sweden and Germany
C)China and India
D)Brazil and Philippines
E)Indonesia and Brazil

Question 41

Kim, a Japanese expatriate working in Denmark, tends to use communication primarily to build personal social relationships.She feels that relationships and trust are more important than business.Kim is surprised that her business associates in Denmark do not share the same views.Based on this information, Kim most likely grew up in which of the following types of culture?

A)Human-oriented
B)Passive
C)Assertive
D)Low-context
E)High-context

Question 42

The legal-political environment includes ______.

A)infrastructure
B)regulations
C)religion
D)exchange rates
E)demographic profile

Question 43

All of the following are cultural dimensions as defined by the GLOBE Project, EXCEPT ____.

A)assertiveness
B)gender differentiation
C)performance orientation
D)humane orientation
E)masculinity

Question 44

Which of these is NOT typically considered part of the flow of globalization?

A)Trade and investments
B)Infrastructure
C)Information
D)Social and cultural ideas
E)Political cooperation

Question 45

Which Chinese company has emerged as the country's first global corporation?

A)Mitra
B)Lenovo
C)Samsung
D)Huawei
E)Xiaomi

Question 46

Which of the following has a goal to guide the nations of the world toward free trade and open markets?

A)GATT
B)WTO
C)GLOBE
D)EU
E)NAFTA

Question 47

The Maharaja Mac and Vegetable burger represented how McDonald's decentralized operations in _________.

A)China
B)India
C)Mexico
D)Russia
E)Indonesia

Question 48

A company's risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments is referred to as _________.

A)MFN
B)political risk
C)tariffs
D)political instability
E)terrorism

Question 49

A.R.C.is a large nonprofit humanitarian aid organization that has been forced to pull out of several African markets in recent years due to civil wars and large-scale violence.This demonstrates which of the following frequently cited problems for international companies?

A)Political instability
B)Communist governments
C)Economic instability
D)Political risk
E)Financial risk

Question 50

Which of the following is a dimension in the global mind-set?

A)Cognitive, psychological
B)Psychological, emotional
C)Social, intellectual
D)Intellectual, psychological
E)Cognitive, emotional

Question 51

Which of the following countries possesses a high degree of assertiveness?

A)Spain
B)Sweden
C)Japan
D)Iceland
E)Switzerland

Question 52

Jana has a high tolerance for the unstructured, the unclear, and the unpredictable.She can best be described as having _______.

A)high uncertainty avoidance
B)low uncertainty avoidance
C)a high degree of individualism
D)a low degree of individualism
E)a low level of power distance

Question 53

A foreign terrorist kidnaps your firm's marketing vice president while the vice president is in the host country.This is a harsh example of ______.

A)economic development
B)infrastructure
C)political risk
D)international law
E)social risk

Question 54

Language, values, religion, and education all describe which of the following dimensions in the international environment?

A)Economic
B)Legal
C)Political
D)Sociocultural
E)Technological

Question 55

Which of the following spurred the entry of small businesses into global arena?

A)GLOBE
B)EU
C)NAFTA
D)ASEAN
E)GATT

Question 56

For which of the following products and services is China NOT the largest or second-largest market?

A)Mobile phones
B)Automobiles
C)Consumer electronics
D)Luxury goods
E)Farm equipment

Question 57

Austria's cultural preference is for achievement, heroism, assertiveness, work centrality, and material success.This would be considered ______.

A)power distance
B)individualism
C)masculinity
D)ethnocentrism
E)collectivism

Question 58

The management of business operations in more than one country is conducted by _____ managers.

A)universal
B)international
C)outsourcing
D)planning
E)domestic

Question 59

How many nations signed on for negotiation when GATT was created in 1947?

A)15
B)23
C)28
D)40
E)57

Question 60

Which of the following countries possesses a high-performance orientation?

A)Israel
B)Sweden
C)Taiwan
D)Russia
E)Venezuela

Question 61

In a __________, people use communication primarily to exchange facts and information.

Question 62

__________ 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.

Question 63

__________ under U.S.$1,500 a year signifies membership in the "bottom of the pyramid."

Question 64

A multinational corporation typically receives at least __________ percent of its total sales revenues from outside the parent's home country.

Question 65

Which of the following countries has feminine values?

A)Japan
B)Germany
C)Norway
D)Italy
E)Mexico

Question 66

Which country banned Netflix's video streaming service?

A)Russia
B)China
C)India
D)Indonesia
E)Canada

Question 67

Which of the following countries did not sign the Trans-Pacific Strategic Economic Partnership Agreement in 2005?

A)Australia
B)Brunei
C)Chile
D)New Zealand
E)Singapore

Question 68

An alliance that begun in 1957 to improve economic and social conditions among its members has evolved into the 28-nation __________.

Question 69

Riots, revolutions, civil disorders, and frequent changes in government that affect the operations of an international company show __________ in a country.

Question 70

__________ spent years patiently negotiating China's legal-political environment.

Question 71

Which of the following reflects the most common approach companies often use to enter the international arena?

A)Partnerships, recruiting
B)Outsourcing, exporting
C)Internet, partnerships
D)Internal connections, outsourcing
E)Exporting, recruiting

Question 72

According to the GLOBE project, a country low on humane orientation values_____.

A)fairness
B)altruism
C)generosity
D)gratification
E)caring

Question 73

A country that places emphasis on fairness and values kindness would be described by the GLOBE Project as high in __________.

Question 74

MNCs that are oriented toward the markets of individual foreign host countries are considered __________.

Question 75

__________ stands for preference for achievement, heroism, assertiveness, work centrality (with resultant high stress), and material success.

Question 76

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

A)5
B)15
C)25
D)45
E)75

Question 77

A popular form of partnership is called _____.

A)joint venture
B)offshoring
C)exporting
D)importing
E)investment

Question 78

The __________ is the single European currency that has replaced several national currencies.

Question 79

NAFTA merged which of the following countries into a single market?

A)Mexico, Canada, Great Britain
B)Canada, The United States, Great Britain
C)The United States, Canada, Mexico
D)Brazil, Mexico, Argentina
E)South Africa, Brazil, The United States

Question 80

The Village Phone program is an example of ____.

A)ethnocentrism
B)nascent globalization
C)top of the pyramid
D)bottom of the pyramid
E)masculinity