Deck 5: Managing in the Global Arena

Question 1

Transnational organizations have the least international involvement of all types of organizations involved in the international arena.

Answer 1

False

Question 2

A company that exports products to a foreign country and establishes sales organizations abroad is considered to be a domestic company.

Answer 2

False

Question 3

Establishing a formal partnership with a foreign company is a form of international management.

Answer 3

True

Question 4

The European Union is an example of an international market agreement.

Question 5

An international organization has a lower level of international involvement than a multinational organization.

Question 6

Expatriates are organization members who live and work in a country in which they are not citizens.

Question 7

The host company is the company investing in international operations.

Question 8

International management is the performance of management activities across national borders.

Question 9

Repatriation is the process of ensuring the adjustment of a worker to a foreign country.

Question 10

A company that merely exports products to a foreign country cannot be considered a multinational corporation.

Question 11

Transnational organizations usually take one particular continent as their business arena.

Question 12

Domestic organizations essentially operate within a single country.

Question 13

One form of international management is fighting competition in foreign markets.

Question 14

In order to be classified as a domestic corporation, a corporation must acquire all resources and sell all products within one country.

Question 15

Host-country nationals do not need to be relocated or undergo training in the culture, language, or tax laws of the country where the organization is doing business.

Question 16

A license agreement is a right granted by one company to another to use its brand name and technology in the manufacture or sale of goods and services.

Question 17

A multinational corporation is a company that is primarily based in one country but has continuing transactions in other countries.

Question 18

Managers with an ethnocentric attitude are prone to stereotype foreign management practices as faulty and unreasonable.

Question 19

A polycentric attitude reflects the belief that multinational corporations should regard home-country management practices as superior to foreign-country management practices.

Question 20

Third-country nationals are organization members who are citizens of the country in which the facility of a foreign-born organization is located.

Question 21

EasyWear Apparels is based in the U.S. and recently established a manufacturing unit in Montreal and a manufacturing unit and retail outlet in Leeds in the U.K. Which of the following scenarios mirrors EasyWear's situation?

A) An automobile company headquartered in Austria starts production for its German market in Berlin.
B) A cell phone producer based in Finland starts selling its products in India.
C) Dell Computers has established sales organizations in major cities all over the world.
D) Fiona, an Italian shoe manufacturer, allows a firm in Kuala Lumpur the use of its patterns.
E) McDonald's has a standing contract with Coca Cola to sell its beverages in all its outlets.

Question 22

________ are members of an organization who live and work in a country where they do not have citizenship.

A) Expatriates
B) Host-country nationals
C) Naturalized citizens
D) Repatriates
E) Dual citizens

Question 23

Joe is a citizen of Sri Lanka who lives and works for a company in Brazil. He is considered to be a(n) ________.

A) dual citizen
B) expatriate
C) repatriate
D) host-country national
E) third-country national

Question 24

Citizens of a country who work in a foreign-based organization located in their own country are known as ________.

A) expatriates
B) host-country nationals
C) third-country nationals
D) repatriates
E) immigrants

Question 25

What is the most advanced stage in multinationalization of a company?

A) licensing its brand names to foreign firms
B) establishing foreign manufacturing facilities
C) establishing sales organizations abroad
D) exporting the organization's products to foreign countries
E) multinationalizing ownership of the corporate stock

Question 26

________ organizations essentially operate within a single country.

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

Question 27

BLT is a sandwich chain based in Boston. Word-of-mouth popularity opened up the market and the company is now opening branches in New Jersey and Connecticut as well. The company sources all its raw materials locally and makes it a point to use sustainable practices. Which of the following actions would make BLT a multinational company?

A) It begins stocking organic foods produced by local farms.
B) It distributes artisanal chocolate produced by a South African firm.
C) It licenses a fast-food chain in England to use its brand name.
D) It diversifies its product lineup to include different types of foods.
E) It begins selling cheeses imported from France.

Question 28

The different types of organizations in ascending order of the extent of involvement in the international arena are ________.

A) domestic, international, multinational, transnational
B) international, transnational, domestic, multinational
C) multinational, domestic, transnational, global
D) transnational, international, multinational, domestic
E) domestic, multinational, transnational, international

Question 29

An organization that has significant operations in more than one country, disregards national boundaries, and is guided by a common strategy from a corporation center is a(n) ________.

A) global organization
B) domestic organization
C) international corporation
D) multinational corporation
E) transnational organization

Question 30

A country in which an investment is made by a foreign company is termed as a(n) ________.

A) host country
B) parent country
C) home country
D) expatriate country
E) subordinate country

Question 31

A company investing in international operations is known as the ________.

A) quasi corporation
B) parent company
C) subsidiary company
D) holding company
E) host company

Question 32

Which of the following is a characteristic of domestic management?

A) widely disparate economic conditions
B) national markets varying greatly in population and area
C) different national sovereignties
D) markets at different stages of the industrial revolution
E) people living in similar value systems

Question 33

Adam & Sons is a fifty-year-old watch company based in Alabama. The major bulk of its sales has always taken place within the U.S. Adam & Sons recently became the sole U.S. distributors for Japanese watch manufacturer TLC. Adam & Sons would therefore be classified as a(n) ________.

A) international organization
B) multinational organization
C) transnational organization
D) global organization
E) domestic organization

Question 34

Which of the following types of organizations has the highest level of international involvement?

A) international organizations
B) multinational organizations
C) transnational organizations
D) ethnocentric organizations
E) domestic organizations

Question 35

Apparel company RED Lion Ltd. has a strong presence along the West Coast in the U.S., and is looking to expand its market overseas. The company began through the export route, exporting apparel to firms in the U.K., but now wants to establish manufacturing units abroad. Which of the following would weaken the company's decision to expand abroad?

A) Establishing manufacturing abroad would reduce RED Lion's shipping costs.
B) There is increasing economic uncertainty in the U.S. market.
C) The preferences of customers in both countries are similar.
D) The economic systems in the two countries are very different.
E) A competitor in the U.S. market recently went out of business.

Question 36

Which of the following describes a company that is primarily based within one country but has continuing and meaningful transactions in other countries?

A) domestic organization
B) international organization
C) multinational organization
D) transnational organization
E) global organization

Question 37

SNL manufactures and sells customized shoes for people with special needs. The company caters mostly to customers within the U.S., though it occasionally sends products to overseas customers. The company is very eco-friendly, and takes pride in sourcing all its raw materials locally. According to the information, SNL is a(n) ________ company.

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

Question 38

Gary is an English national working for an American company situated in London. He is a(n) ________.

A) host-country national
B) third-country national
C) repatriate
D) expatriate
E) immigrant

Question 39

Which of the following categories of organizations generally has the lowest level of international involvement?

A) global organizations
B) domestic organizations
C) international organizations
D) multinational organizations
E) transnational organizations

Question 40

Which of the following is the simplest stage of multinationalization?

A) establishing sales organizations abroad
B) licensing the use of the organization's pattern and know-how to foreign firms that make and sell the organization's product
C) establishing foreign manufacturing facilities
D) multinationalizing the organization's management from top to bottom
E) exporting the organization's product to foreign countries

Question 41

An international market agreement is ________.

A) a joint venture between two companies who want to enter markets in the other country
B) an arrangement among a cluster of countries that facilitates a high level of trade among these countries
C) an international import deal between two countries
D) an agreement between an importer from one country and an exporter from another
E) an agreement between a multinational company and its franchisees in a number of countries

Question 42

When a United States computer manufacturer sells a shipment of 40 computers to a retailer in Germany, the computer manufacturer is engaged in the process of ________.

A) importing
B) exporting
C) developing a license agreement
D) direct investing
E) repatriating

Question 43

The European Union is a(n) ________ established dedicated to facilitating trade among member nations.

A) international joint venture
B) license agreement
C) international market agreement
D) transnational organization
E) polycentric organization

Question 44

Which of the following is true for employees of multinational organizations?

A) A third-country national works for a foreign organization in its home country.
B) A host-country national will face problems adjusting to the culture of the country in which he works.
C) Expatriates and third-country nationals have to be relocated and undergo training.
D) A host-country national is an organization member who lives and works in a country where he or she does not have citizenship.
E) Host-country nationals are usually the most expensive to employ.

Question 45

Zac, an American citizen, has worked for a company in Berlin for the last five years. Which of the following scenarios mirrors the situation Zac is in?

A) Sandra is Polish and works for a U.K.-based company in Venice.
B) Winston is a U.K. national but has been sent to Canada by his company to handle the operations there for the next two years.
C) Vanessa is English and works in London for a company based in Denmark.
D) Ursula is a Finn but has been in Germany for the last four years, working for a company headquartered in Japan.
E) Nikolai works for an Irish company in Oslo and is a Norwegian by birth.

Question 46

The process of bringing individuals who have been working abroad back to their home country and reintegrating them into the organization's home-country operations is called ________.

A) repatriation
B) expatriation
C) immigration
D) polycentrism
E) emigration

Question 47

A partnership formed by a company in one country with a company in another country for the purpose of pursuing some mutually desirable business undertaking is known as a(n) ________.

A) international market agreement
B) direct investment
C) joint venture
D) license agreement
E) franchise agreement

Question 48

The ________ function of management involves determining how an organization will achieve its objectives.

A) planning
B) organizing
C) influencing
D) controlling
E) observing

Question 49

If a company in the United States allows a company in England to use its brand name for a fee, the company is said to have entered into a(n) ________.

A) license agreement
B) direct investing agreement
C) venture agreement
D) export agreement
E) import agreement

Question 50

International plans that include ________ emphasize the attainment of organizational objectives through partnerships with foreign companies.

A) joint ventures
B) imports
C) exports
D) license agreements
E) direct investing

Question 51

Organization members who are citizens of one country and work in another country for an organization headquartered in still another country are known as ________.

A) expatriates
B) host-country nationals
C) third-country nationals
D) repatriates
E) naturalized citizens

Question 52

Which of the following countries is a member of the APEC?

A) Germany
B) Egypt
C) Australia
D) Argentina
E) Brazil

Question 53

An American clothing manufacturer has recently purchased a clothing factory in Taiwan. This action is known as ________.

A) importing
B) exporting
C) licensing
D) direct investing
E) franchising

Question 54

APEC was established in 1989 to further the economic growth and prosperity of the ________ community.

A) North American
B) Asia-Pacific
C) Commonwealth
D) European
E) African

Question 55

Which of the following statements is true about NAFTA?

A) It aims at facilitating trade among the United States, Canada, and Mexico.
B) It's members include Denmark, the United Kingdom, Portugal, the Netherlands, Belgium.
C) It is an international market agreement aimed at facilitating trade among African nations.
D) It works to reduce tariffs and other trade barriers across the Asia-Pacific region.
E) It has 21 members, including Canada, the People's Republic of China, Indonesia, and the U.S.

Question 56

Organizations that operate globally find that ________ are the least expensive to employ.

A) host-country nationals
B) expatriates
C) third-country nationals
D) repatriates
E) migrant workers

Question 57

Canada, the People's Republic of China, Indonesia, and the United States are all members of the Asian-Pacific Economic Cooperation. This agreement is an example of a(n) ________ agreement.

A) international license
B) international market
C) international framework
D) international import
E) international export

Question 58

International planning in the area of ________ emphasizes reaching organizational objectives through the purchase of the operating assets of another company in a foreign country.

A) direct investing
B) joint venture
C) importing
D) exporting
E) license agreements

Question 59

Organization ________ is the sum of all established relationships among resources within an organization.

A) structure
B) overview
C) mission
D) path
E) purpose

Question 60

Hugh is an American citizen currently living in Denmark. He works for a company that has its headquarters in France. He is a(n) ________.

A) third-country national
B) host-country national
C) home-country national
D) dual citizen
E) repatriate

Question 61

Countries that are high in ________ prefer being in more defined and predictable situations.

A) individualism
B) masculinity
C) collectivism
D) power distance
E) uncertainty avoidance

Question 62

Which of the following attitudes is generally thought to be the most appropriate for mangers in multinational corporations?

A) geocentric
B) ethnocentric
C) polycentric
D) egocentric
E) regiocentric

Question 63

A Canada-based shoe manufacturing company in Malaysia has hired a Malaysian manager to manage it, because the company's CEO believes that the manager will understand the situation and manage the plant better than any foreign manager. This company is said to have a(n) ________ attitude.

A) ethnocentric
B) polycentric
C) egocentric
D) geocentric
E) gynocentric

Question 64

Organizations headquartered in Pakistan train their employees in order to enable them to tackle the job that has to be performed immediately. The managers also prefer maintaining a day-to-day perspective. Pakistan is a good example of a ________ society.

A) highly individualistic
B) highly feminine
C) short-term oriented
D) low power distance
E) low uncertainty avoidance

Question 65

In South Korean society, business success is pursued through people who work as a team. Managers believe that good interpersonal relationships among the members of a team are a must for success. What can be deduced from this?

A) South Korean society has a long-term orientation.
B) South Korea has high power distance.
C) South Korea is low on uncertainty avoidance.
D) South Korea has strong masculine values.
E) South Korea is a collectivist culture.

Question 66

Which of the following statements is true for the various management attitudes?

A) An organization characterized by the geocentric attitude incurs high travel and training expenses.
B) The ethnocentric attitude reflects the belief that because foreign managers are closer to foreign organizational units, they understand them better.
C) The ethnocentric attitude is generally thought to be the most appropriate for managers in multinational corporations.
D) The polycentric attitude often causes resentment toward the home country within the foreign society.
E) Managers with a geocentric attitude stereotype home-country management practices as sound and reasonable and foreign management practices as faulty and unreasonable.

Question 67

The manager of a multinational corporation in the U.S. thinks that following U.S. management practices is best for its operations in New Zealand because U.S. management practices are better than the management practices prevalent in New Zealand. This manager is said to have a(n) ________ attitude.

A) ethnocentric
B) polycentric
C) geocentric
D) xenocentric
E) gynocentric

Question 68

March Hare Entertainment is a media company in London that specializes in bizarre and sometimes shocking campaigns. The firm is looking to expand into other countries, but will require a culture that is very similar to its home culture: open to experimentation and risk and not authoritarian. Which of the following countries is the best option for March Hare?

A) Germany has high power distance and collectivism.
B) Denmark has low power distance and low uncertainty avoidance.
C) Japanese culture favors low individualism and high power distance.
D) India has a long-term orientation and high uncertainty avoidance.
E) France has low uncertainty avoidance and high power distance.

Question 69

Which of the following is true according to Hofstede's method of describing culture?

A) Countries with low power distance tend to emphasize, expect, and accept more autocratic than democratic leadership.
B) Highly feminine countries place a high worth on factors like competitiveness, assertiveness, success, and wealth.
C) Power distance is the extent to which a society feels threatened by uncertain or unpredictable situations.
D) Countries that are high in uncertainty avoidance prefer being in more defined and predictable situations.
E) Countries with low uncertainty avoidance deemphasize short-run success to achieve long-run success.

Question 70

The ________ attitude reflects the belief that because foreign managers are closer to foreign organizational units, they understand them better, and therefore foreign management practices are more insightful than home-country management practices.

A) ethnocentric
B) polycentric
C) egocentric
D) geocentric
E) gynocentric

Question 71

A Belgium-based multinational company hires the best managers for its operations, regardless of the location of those managers. This company is said to have a(n) ________.

A) ethnocentric attitude
B) polycentric attitude
C) egocentric attitude
D) geocentric attitude
E) gynocentric attitude

Question 72

Managers with a ________ attitude believe that the overall quality of management recommendations, rather than the location of managers, should determine the acceptability of management practices used to guide multinational corporations.

A) ethnocentric
B) polycentric
C) geocentric
D) xenocentric
E) gynocentric

Question 73

The organization chart ________ .

A) establishes the organization's goals for the year
B) is the graphic illustration of organization structure
C) lists departments in order of productivity
D) details the organization's plans for achieving its goals
E) is the representation of the organization's financial system

Question 74

France is a country where employees tend to follow whatever their managers say. They do not question the authority of their managers. Which of the following statements can be deduced from this information?

A) France has a culture that promotes masculinity.
B) France is a country where short-term orientation is prevalent.
C) France is a country with high power distance.
D) France is a society with low uncertainty avoidance.
E) French society promotes individualism.

Question 75

Countries that highly promote ________ have citizenry that tends to emphasize, expect, and accept more autocratic than democratic leadership.

A) short-term orientation
B) individualism
C) power distance
D) masculinity
E) collectivism

Question 76

The management of a company decides on a way to compare profits generated by organizational units located in different countries and expressed in terms of different currencies. What management function has been performed?

A) planning
B) influencing
C) controlling
D) organizing
E) leading

Question 77

In Greece, employees do not like to be in a situation they know nothing about. They like to be informed about every situation they are likely to face. It can be deduced that Greece is a society that has ________.

A) feminine values
B) long-term orientation
C) low power distance
D) high uncertainty avoidance
E) high individualism

Question 78

________ is the set of characteristics of a given group of people and their environment and includes components like norms, values, habits, education and religion.

A) Culture
B) Politics
C) Laws
D) Morals
E) Ethics

Question 79

Japan has a society that values competitiveness and assertiveness over nurturing others and improving their quality of life. The people believe that success and wealth are very important. Japan is said to have a society that ________.

A) emphasizes masculine values
B) has short-term orientations
C) has high power distance
D) is low on uncertainty avoidance
E) emphasizes collectivism

Question 80

________ in multinational corporations requires that standards be set, performance be measured and compared to standards, and corrective action be taken if necessary.

A) Planning
B) Organizing
C) Leading
D) Controlling
E) Influencing