Question 1

The European Union has expanded to a _____-nation alliance.

Accepted Answer

As of 2021, the European Union consists of 27 member states, so the correct answer is C) 28 if we include the EU itself as a member.

Question 2

Sharon Cannon
Sharon Cannon was an MBA student in Detroit, Michigan, with a managerial position at the Ford Motor Company plant. She was invited to join a company that had entered into a joint venture with a German firm to manage a Volkswagen plant. Sharon would be under contract for one year, with an option to renew for a total of three years. Her salary would be 350% more than she was currently earning, and she would be given two all-expenses paid vacations each year. The money and the benefits sounded very nice, but Sharon wasn't sure what the best choice would be.
-If she should decide to take the job, she will be most successful in a foreign assignment if she has:

Accepted Answer

Cultural intelligence, which refers to an individual's ability to adapt to and function effectively in different cultural contexts, is essential for success in a foreign assignment. This includes not only understanding cultural differences but also being able to adjust one's behavior and communication style accordingly. High uncertainty avoidance (A) refers to a preference for structure and clear guidelines, which may not be as applicable in a foreign environment. Linguistic pluralism (C) refers to the ability to speak multiple languages, which can be helpful but not necessarily essential for success. Ethnocentrism (D), or believing that one's culture is superior to others, can create significant barriers to effective cross-cultural communication and collaboration. Geocentrism (E), or the ability to think and act globally while recognizing and valuing cultural differences, is closely related to cultural intelligence and can also be helpful in a foreign assignment, but is not a specific answer choice.

Question 3

Which of the following characteristics distinguish a multinational corporation (MNC)?

Accepted Answer

All of the listed characteristics distinguish a multinational corporation. MNCs are known for having top managers with a global perspective, being managed as an integrated global business system, and receiving a significant portion of their revenue from foreign operations. Additionally, MNCs are not ultimately controlled by a single management authority as they often have separate subsidiaries and divisions operating in different regions or countries.

Question 4

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

Accepted Answer

NAFTA (North American Free Trade Agreement) reduced trade barriers between the U.S., Canada, and Mexico, encouraging small businesses to enter the global market.

Question 5

Which of the following is a low-context culture?

Accepted Answer

German culture is considered to be a low-context culture as their communication style is direct and explicit, with a focus on facts and logic rather than relying on nonverbal cues and implicit understanding.

Question 6

Multinational corporationsthat are oriented toward the markets of individual foreign host countries are considered __________.

Accepted Answer

The answer of Multinational corporationsthat are oriented toward the markets...

Question 7

The __________ is a single European currency that replaced the currencies of 19 European Union (EU) member nations.

Accepted Answer

The Euro is a single European currency that replaced the currencies of 19 European Union member nations, including the Deutschmark (mark), French franc, Italian lira, and Spanish peseta.

Question 8

Sharon Cannon
Sharon Cannon was an MBA student in Detroit, Michigan, with a managerial position at the Ford Motor Company plant. She was invited to join a company that had entered into a joint venture with a German firm to manage a Volkswagen plant. Sharon would be under contract for one year, with an option to renew for a total of three years. Her salary would be 350% more than she was currently earning, and she would be given two all-expenses paid vacations each year. The money and the benefits sounded very nice, but Sharon wasn't sure what the best choice would be.
-The degree of international involvement for the joint venture is an example of:

Accepted Answer

The joint venture between the company Sharon was invited to join and the German firm signifies a partnership, as both companies are collaborating to manage the Volkswagen plant. This degree of international involvement is not an example of outscoring, exporting, or offshoring. Therefore, Sharon's best choice would be to accept the offer and sign the contract for one year, with the option to renew for three years, considering the significant salary increase and benefits offered.

Question 9

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

Accepted Answer

China has been the top destination for foreign investment for several years now, with foreign companies investing more in business in China than anywhere else in the world. This is due to its huge market potential, favorable government policies, and affordable labor costs. Brazil, India, the United States, and Russia, while also attracting foreign investment, do not have as much investment as China.

Question 10

__________ refers to the extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries.

Accepted Answer

The answer of __________ refers to the extent to which...

Question 11

The World Trade Organization (WTO):

Accepted Answer

The World Trade Organization (WTO) has legal authority to arbitrate disputes on trade issues. It was established on January 1, 1995, as a global organization to oversee and enforce international trade agreements and resolve disputes that arise from them. Its headquarters are located in Geneva, Switzerland.

Question 12

The North American Free Trade Agreement (NAFTA):

Accepted Answer

NAFTA made the United States, Canada, and Mexico into a single market, made virtually all U.S. exports into Canada and Mexico duty-free, and increased U.S. trade with both Mexico and Canada. However, it has not lived up to its grand expectations and has faced criticism from various sectors.

Question 13

All of the following are low-level jobs that have been outsourced to low-wage countries in recent years except:

Accepted Answer

Software development is not typically considered a low-level job and is therefore less likely to be outsourced to low-wage countries. The other options listed are more commonly outsourced due to their lower skill requirements and cost-saving opportunities.

Question 14

Multinational corporationsthat are truly world-oriented and favor no specific country are considered __________.

Accepted Answer

The answer of Multinational corporationsthat are truly world-oriented and favor...

Question 15

Carrie's Car Care receives more than 25 percent of its total sales revenues from operations outside of its home country, the United States. Carrie's would be considered:

Accepted Answer

A multinational corporation is a business with operations in two or more countries. Since Carrie's Car Care receives more than 25 percent of its sales revenues from operations outside of the US, it meets the criteria of being a multinational corporation. Option A is incorrect because being a foreign national refers to individuals, not corporations. Option B is incorrect because "wealth company" is not a defined term in the context of business. Option D is incorrect because "globalization corporation" is not a commonly used term in business. Option E is incorrect because none of the other choices are appropriate.

Question 16

A(n) __________ typically receives more than 25 percent of its total sales revenues from operations outside the parent's home country.

Accepted Answer

The answer of A(n) __________ typically receives more than 25...

Question 17

A(n) __________ is the ability of managers to appreciate and influence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, and psychological characteristics.

Accepted Answer

The answer of A(n) __________ is the ability of managers...

Question 18

__________ 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.

Accepted Answer

The answer of __________ means engaging in the international division...

Question 19

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

Accepted Answer

The answer of __________ is the management of business operations...

Question 20

Sharon Cannon
Sharon Cannon was an MBA student in Detroit, Michigan, with a managerial position at the Ford Motor Company plant. She was invited to join a company that had entered into a joint venture with a German firm to manage a Volkswagen plant. Sharon would be under contract for one year, with an option to renew for a total of three years. Her salary would be 350% more than she was currently earning, and she would be given two all-expenses paid vacations each year. The money and the benefits sounded very nice, but Sharon wasn't sure what the best choice would be.
-The American firm joining in the joint venture faces __________ than if it were using __________ to do business internationally.

Accepted Answer

A joint venture typically involves higher costs compared to outsourcing because it requires investment in a partnership and shared management, whereas outsourcing involves contracting out services or production to another company, often at a lower cost.

Quiz 4: Managing in a Global Environment