Question 1

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.
A) independence, resourcefulness, and discipline
B) good management skills
C) independence and strong leadership skills
D) independence, resourcefulness, and entrepreneurship
E) discipline and a strong will

Accepted Answer

The answer of Hannah, an engineer for an oil company,...

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 ____.
A) outsourcing
B) sourcing
C) inputting
D) countertrading
E) importing

Accepted Answer

This is an example of countertrading, where Don's Carpet is exchanging their services for goods instead of money.

Question 3

Countertrading is ___ goods for goods.
A) outsourcing
B) sourcing
C) bartering
D) selling
E) licensing

Accepted Answer

Countertrading is a form of international trade where goods and services are exchanged for other goods and services rather than for hard currency. It is similar to bartering, where goods and services are exchanged for other goods and services without the use of money. Therefore, option C, bartering, is the correct answer.

Question 4

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 ____.
A) take more time to start new endeavors
B) typically maneuver slowly with new ideas
C) can get started more easily and maneuver faster
D) tend to not change due to inexperienced management
E) can adjust more easily to capital shortages

Accepted Answer

The statement suggests that small companies can get started more easily and maneuver faster if they decide to add new products.

Question 5

Mexican manufacturing plants with low labor costs and special privileges given to their American owners in return for employing Mexican citizens are known as ____.
A) diversedoras
B) barterists
C) globalists
D) internationldoras
E) maquiladoras

Accepted Answer

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

Question 6

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 ____.
A) franchising
B) importing
C) offshoring
D) exporting
E) countertrading

Accepted Answer

This describes the process of franchising, where a company grants a license to others to operate under their brand name and business model in exchange for a fee and a share of profits.

Question 7

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.
A) geocentric
B) ethnocentric
C) synergy
D) MBO
E) polycentric

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.

Question 8

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 ____.
A) multinational corporation
B) conglomerate
C) foreign firm
D) philanthropic corporation
E) multinational organization

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 9

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.
A) ethnocentric
B) global
C) native
D) polycentric
E) paraochial

Accepted Answer

Maria's belief that local employees understand best how to handle personnel and practices in their offices aligns with the polycentric approach to management, where local managers have more autonomy and decision-making power. This approach recognizes that cultural differences exist and that local managers are better equipped to handle them. On the other hand, an ethnocentric manager would believe that home country practices and policies are superior, while a global manager would take a standardized approach regardless of local differences. A native manager refers to someone who manages their own country or culture, while a parochial manager has a narrow-minded focus on their own culture or region.

Question 10

Tops Burger, based out of Texas, has locations in 25 countries. Tops is a ____.
A) multinational corporation
B) conglomerate
C) multinational organization
D) foreign partner
E) foreign firm

Accepted Answer

A multinational corporation is a corporation that has operations in multiple countries. Since Tops Burger has locations in 25 countries, it fits the definition of a multinational corporation.

Question 11

Like other international companies, Jane is interested in expanding her candle business globally primarily to ___.
A) take advantage of supplies, new markets, and lower labor costs
B) take advantage of supplies, new markets, and a diverse workforce
C) implement tariffs and import quotas
D) utilize export embargos to increase business
E) increase synergy and diversity

Accepted Answer

The statement mentions that Jane wants to expand her business globally primarily to take advantage of supplies, new markets, and lower labor costs. Therefore, option A is the best choice. Option B mentions a diverse workforce, which may be a benefit, but it is not mentioned as a primary reason for the expansion. Options C, D, and E are not mentioned as reasons for the expansion.

Question 12

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 ____.
A) MBO
B) bartering
C) trading
D) outsourcing
E) diversifying

Accepted Answer

The practice described in the scenario is outsourcing, which involves contracting out a business function to an external party. Quality Air is utilizing other production companies to produce certain parts for their airplanes.

Question 13

Alice's Pasta Kitchen makes quality pasta and sells its products to customers in other countries. This is an example of ____.
A) bartering
B) countermarketing
C) exporting
D) dumping
E) importing

Accepted Answer

Alice's Pasta Kitchen is engaging in exporting, which involves selling products to customers in other countries.

Question 14

Dominique owns an international grocery store where customers can purchase products from other countries. Dominique's store is an example of a company that ____.
A) exports
B) globalizes
C) inputs
D) imports
E) countertrades

Accepted Answer

Dominique's store imports products from different countries to sell in their store.

Question 15

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.
A) parochial
B) ethnocentric
C) global
D) geocentric
E) polycentric

Accepted Answer

Trey is a geocentric manager since he believes that there are both differences and similarities between home and foreign personnel and practices, and that the most effective techniques should be used regardless of origin. Geocentric managers see themselves as part of a global team and seek the best talent and ideas, wherever they may come from.

Question 16

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) ___.
A) strategic alliance
B) global strategy
C) export strategy
D) import strategy
E) franchising strategy

Accepted Answer

This is an example of a strategic alliance, where two companies come together to form a joint venture to pursue a common goal or opportunity, in this case, entering a new market in China. The companies are sharing the risks and rewards of the venture together.

Question 17

Ethnocentric managers believe that their native country, culture, language, and behavior _____.
A) are equal to all other cultures
B) are hurtful to others
C) need to be changed
D) are outdated
E) are superior to all others

Accepted Answer

Ethnocentric managers believe that their own culture is superior to all others, which can lead to a lack of understanding and appreciation for other cultures, potentially resulting in negative attitudes and behaviors towards those from different cultures.

Question 18

Licensing is when a company ____.
A) allows another company to pay it a fee to train its employees
B) allows a foreign company to pay it a fee to make or distribute the first company's product or service
C) pays a competitor a fee to avoid a company's territory
D) develops a strategic plan for another organization
E) barters goods for goods in lieu of a monetary payment

Accepted Answer

Licensing is when a company allows a foreign company to pay a fee to make or distribute the first company's product or service. This allows the first company to expand its reach into new markets without having to invest the resources necessary to establish a new presence in those markets.

Question 19

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 ____.
A) synergy-based
B) ecocentricism
C) geocentrism
D) polycentrism
E) parochialism

Accepted Answer

Steve's management style can be described as parochialism because he only sees things from his own perspective and does not consider the perspectives of others.

Question 20

Ethnocentrism is also known as _____.
A) geocentrism
B) ecocentrism
C) parochialism
D) open-mindedness
E) a flexible management style

Accepted Answer

Ethnocentrism refers to the tendency to judge other cultures based on one's own cultural values, beliefs, and customs. Parochialism is a similar concept, which refers to having a narrow or limited perspective and not being open to other cultures or ways of thinking. Geocentrism refers to a belief that one's own country or region is the center of the world, while ecocentrism is a perspective that emphasizes the importance of the environment in decision-making. Open-mindedness and a flexible management style are opposites of ethnocentrism and parochialism, but are not synonyms for ethnocentrism.

Quiz 4: Global Management: Managing Across Borders

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.

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 ____.

Countertrading is ___ goods for goods.

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

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 ____.

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 ____.

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

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

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 ____.

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

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

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

Licensing is when a company ____.

Ethnocentrism is also known as _____.