Question 1

Alice's Pasta Kitchen makes quality pasta and sells its products to customers in other countries.This is an example of ____.

Accepted Answer

When exporting,a company produces goods domestically and sells them outside the country.

Question 2

Don's Carpet installed carpet at no cost for City Office Supply,in exchange for $1,000 of office supplies.This is an example of ____.

Accepted Answer

Countertrading is bartering goods for goods.

Question 3

Quality Air,a company that builds airplanes,typically utilizes other production companies that specialize in certain parts for its jets;this practice is known as ____.

Accepted Answer

Outsourcing,a common practice of many companies,is defined as using suppliers outside the company to provide goods and services.

Question 4

Tops Burger,based out of Texas,has locations in 25 countries.Tops is a ____.

Accepted Answer

A multinational corporation,or multinational enterprise,is a business firm with operations in several countries.

Question 5

Like other international companies,Jane is interested in expanding her candle business globally primarily to ___.

Accepted Answer

Companies expand internationally to take advantage of availability of supplies,new markets,lower labor costs,access to finance capital,or avoidance of tariffs and import quotas.

Question 6

Ethnocentrism is also known as _____.

Accepted Answer

Parochialism is a narrow view in which people see things solely through their own perspective.

Question 7

Maria,the vice president of sales for an international organization,believes that employees in her foreign offices understand best how to handle the personnel and practices in their offices.So when the corporate HR manager approached Maria about scolding Robert,the Paris,manager,for not doings things according to corporate policy,Maria backed Robert and said,"I believe that the home office should leave Robert alone because he best understands the local culture." Maria is an example of a(n)___ manager.

Accepted Answer

Polycentric managers take the view that native managers in the foreign offices best understand native personnel and practices,and so the home office should leave them alone.

Question 8

George,a regional manager for a global corporation,is meeting with several upset managers from the Rome plant about Steve,the Rome facility manager originally from Florida.Phillipe,the assistant manager,tells George "We all feel that Steve only sees things his way and very seldom considers our perspective on things." Steve's management style can be described as ____.

Accepted Answer

Parochialism is a narrow view in which people see things solely through their own perspective.

Question 9

Shoes International is a global nonprofit organization that works with schools and various companies to donate shoes to children in poverty throughout the world.Shoes International is an example of a ____.

Accepted Answer

A multinational organization is a nonprofit organization with operations in several countries.Examples are the World Health Organization,the International Red Cross,and the Church of Latter-day Saints.

Question 10

Ethnocentric managers believe that their native country,culture,language,and behavior _____.

Accepted Answer

Ethnocentric managers believe that their native country,culture,language,and behavior are superior to all others.Ethnocentric managers tend to believe that they can export the managers and practices of their home countries to anywhere in the world and that they will be more capable and reliable than the native managers.

Question 11

Dominique owns an international grocery store where customers can purchase products from other countries.Dominique's store is an example of a company that ____.

Accepted Answer

When importing,a company buys goods outside the country and resells them domestically.

Question 12

Luxere Hotels International,an American company,sells the rights to other hospitality companies globally to open hotels with the Luxere name for a fee and a share of the profit,in return for using Luxere's brand name and a package of materials and services.This defines ____.

Accepted Answer

Franchising is a form of licensing in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company's brand name and a package of materials and services.

Question 13

Tom,who owns a successful business with two locations and a few international clients,was approached by a large organization about dramatically expanding his company.Tom later told his wife that he is happy with his success,but he wants to stay small because if he decides to add new products,small companies ____.

Accepted Answer

The Internet and the World Wide Web allow almost anyone to be global,which has two important results: (1)small companies can get started more easily,and (2)small companies can maneuver faster.For example,a small company can be extremely responsive to tax code changes.

Question 14

Technology Experts is a U.S.company that specializes in IT research.It has formed a joint venture with Processor Inc. ,a Canadian organization that has a reputation of producing quality PCs,to market laptops in China,sharing the risks and rewards of starting the new enterprise together.This is an example of a(n)___.

Accepted Answer

A U.S.firm may form a joint venture,also known as a strategic alliance,with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country.

Question 15

Mexican manufacturing plants with low labor costs and special privileges given to their American owners in return for employing Mexican citizens are known as ____.

Accepted Answer

American companies have found it cheaper to do their manufacturing outside the United States.For example,the rationale for using maquiladoras,which are manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens,is that they provide less expensive labor for assembling many types of manufactured goods.

Question 16

Countertrading is ___ goods for goods.

Accepted Answer

Countertrading is bartering goods for goods.

Question 17

Hannah,an engineer for an oil company,is interested in working overseas at this stage of her life because she knows that foreign work experience demonstrates ____ to potential employers.

Accepted Answer

Foreign experience demonstrates independence,resourcefulness,and entrepreneurship,according to management recruiters.

Question 18

Roberto,the vice president of marketing,is talking to Francis,a sales manager in a foreign office,about several local situations that Francis's reps are facing in their territory.Roberto tells Francis that he believes there are differences and similarities between home and foreign personnel and practices,and that Francis should use whatever techniques are most effective.Trey is an example of a(n)____ manager.

Accepted Answer

Geocentric managers accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective.

Question 19

Licensing is when a company ____.

Accepted Answer

In licensing,a company allows a foreign company to pay it a fee to make or distribute the first company's product or service.

Question 20

John,a construction manager,has been having problems finding quality employees in some of his foreign offices.While speaking with his attorney,Alisha,he mentioned that "in our locations overseas,many of our good employees have been quitting,and as you know,we have numerous lawsuits over personnel policies." Alisha explained that historically,these types of issues are a result of ____ policies.

Accepted Answer

A survey of 918 companies with home offices in the United States,Japan,and Europe found that ethnocentric policies were linked to such problems as recruiting difficulties,high turnover rates,and lawsuits over personnel policies.

Quiz 4: Global Management: Managing Across Borders