Question 1

You also plan to discuss other regional trading alliances like the one in Southeast Asia called ________.
A)FTASAN
B)Mercosur
C)ASEAN
D)SEAFTA
E)the Southern Cone Common Market

Accepted Answer

ASEAN (Association of Southeast Asian Nations) is the regional trading alliance in Southeast Asia, consisting of ten member countries. FTASAN and SEAFTA are not actual trading alliances, while Mercosur and the Southern Cone Common Market are regional trading alliances in South America, not Southeast Asia.

Question 2

Refer to the Scenario below to answer the questions that follow.
Business Expansion Plan (Scenario)
As a business expansion director,Shana's goal is to scout potential locations for her company's planned expansion to other countries.There are many options,some of which include maintaining the business's head office in Canada.Other options include sending company representatives to foreign operations when necessary,or establishing separate operation facilities abroad and hiring locals as managers.
-If Shana's company decides to open operations in France but maintains company management in Canada,it would be considered a ________.
A)transnational corporation
B)multinational corporation
C)multidomestic corporation
D)joint venture

Accepted Answer

A multinational corporation operates in multiple countries but maintains management and decision-making centralized in the home country, which aligns with the scenario described.

Question 3

Refer to the Scenario below to answer the questions that follow.
Business Expansion Plan (Scenario)
As a business expansion director,Shana's goal is to scout potential locations for her company's planned expansion to other countries.There are many options,some of which include maintaining the business's head office in Canada.Other options include sending company representatives to foreign operations when necessary,or establishing separate operation facilities abroad and hiring locals as managers.
-If Shana's company decides to open a new operation in Germany that has local managers and is run locally but still exists under the umbrella of the home company,it would be considered a ________.
A)national corporation
B)borderless organization
C)trade alliance
D)multidomestic corporation

Accepted Answer

A multidomestic corporation is a type of international company that has operations in multiple countries but allows each location to operate independently and tailor products and services to the local market. This option fits the scenario description of establishing separate operation facilities abroad and hiring locals as managers.

Question 4

Refer to the Scenario below to answer the questions that follow.
The European Expansion (Scenario)
As a manager at a growing Canadian company,Samantha has been asked to develop a strategy to expand the company's operations into the European market.Although the company president has provided some basic guidelines about acceptable levels of risk and investment,there are still many factors in the legal/political,economic,and cultural environments that Samantha must take into consideration in her proposal.
-Samantha begins to explore expansion opportunities in England and France because of language similarities with the Canadian market,and also because her Canadian managers are used to legal and political systems that are ________.
A)stable
B)fixed
C)command-based
D)flexible
E)dynamic

Accepted Answer

The use of the word "stable" suggests that Samantha is looking for legal and political systems that are predictable and consistent, which would allow for more certainty when expanding the company's operations.

Question 5

Refer to the Scenario below to answer the questions that follow.
The European Expansion (Scenario)
As a manager at a growing Canadian company,Samantha has been asked to develop a strategy to expand the company's operations into the European market.Although the company president has provided some basic guidelines about acceptable levels of risk and investment,there are still many factors in the legal/political,economic,and cultural environments that Samantha must take into consideration in her proposal.
-Samantha is considering whether her company should open a subsidiary in Germany or Italy.She is wondering which country's culture would be better suited to her company,since research indicates that ________.
A)organizational culture has a greater effect on employees than national culture
B)national culture has a greater effect on employees than organizational culture
C)national culture and organizational culture have roughly the same effect on employees
D)organizational culture has a greater effect on employees than employment laws
E)national culture has a greater effect on employees than economic conditions

Accepted Answer

The scenario indicates that Samantha is considering which country's culture would be better suited to her company. Therefore, national culture has a greater effect on employees than organizational culture. Choice A, C, D and E are not relevant to Samantha's decision-making process in this scenario.

Question 6

Refer to the Scenario below to answer the questions that follow.
First Business Trip to Asia (Scenario)
Jeff Elliott is on a flight across the Pacific and is excited about his first business trip to Asia.Born and raised in Alberta,Jeff is a manager for a rapidly growing Calgary-based company.His current mission is to scout out potential locations in Asia and develop an international expansion strategy for his company.There are many options,including maintaining the businesses head office in Canada and sending over company representatives when necessary,or developing a separate company in Asia and hiring locals to manage the business.Jeff's trip will take him to Japan,Korea,Hong Kong,Taiwan,and Thailand.He is looking forward to learning more about the business practices and customs of each country,and he is not too worried about the fact that he only speaks English.Jeff has heard that English is considered the main international business language and he anticipates that most Asians will be able to speak it.
-If Jeff's company decided to open another company in Taiwan but manage it from its headquarters in Canada,it would be considered a ________.
A)transnational corporation
B)global business alliance
C)regional trade alliance
D)multinational corporation
E)borderless organization

Accepted Answer

If Jeff's company opened another company in Taiwan but managed it from its headquarters in Canada, it would be considered a multinational corporation (MNC). An MNC operates in multiple countries, with a centralized management and ownership structure. In this case, the Canadian headquarters would have control over the Taiwanese subsidiary. A transnational corporation typically operates with decentralized management and ownership structures, giving more autonomy to each subsidiary. A global business alliance and regional trade alliance refer to partnerships between multiple companies or countries. A borderless organization is a newer concept that emphasizes collaboration and flexibility, eliminating traditional organizational hierarchies and boundaries.

Question 7

Daniel is made aware of a new threat by a local group that opposes the mining of a raw material used in the manufacturing process.The company is now likely facing a ________.
A)supplier
B)industry association
C)competitor
D)public pressure group
E)shareholder

Accepted Answer

The local group that opposes the mining of the raw material is a public pressure group, and their actions present a potential threat to the company's reputation and operations.

Question 8

Before you conclude your speech,you intend to explain how the WTO operates as ________.
A)a unilateral trading system
B)a global organization that deals with the rules of trade among nations
C)a mechanism to discourage global trade and protect the environment
D)the only global organization that monitors and promotes competition between nations
E)the only global organization dedicated to protecting the rights of workers in multinational corporations

Accepted Answer

The WTO (World Trade Organization) is a global organization that deals with the rules of trade among nations by promoting free trade and enforcing the rules and agreements that govern trade. It is not a unilateral trading system or a mechanism to discourage global trade or protect the environment, nor is it solely focused on monitoring and promoting competition between nations or protecting the rights of workers in multinational corporations.

Question 9

To help explain the main advantages of regional trade alliances,you will point out that EU member countries now have ________.
A)government subsidies
B)nationalistic policies
C)protected industries
D)a single market
E)border controls

Accepted Answer

The main advantage of regional trade alliances, such as the European Union, is the creation of a single market, which allows for the free movement of goods, services, capital, and people between member countries. This can lead to increased efficiency, lower prices, and greater economic growth for all participating countries. Government subsidies, nationalistic policies, protected industries, and border controls are all potential barriers to trade that can hinder the benefits of a regional trade alliance.

Question 10

If Jeff's company decides to open completely new operations in Thailand,Japan,and Korea,and decides to decentralize management and decision making to the local countries,it would be following a ________ approach.
A)multidomestic
B)global
C)ethnocentric
D)multinational
E)borderless organization

Accepted Answer

The multidomestic approach involves decentralizing management and decision making to the local countries, allowing for adaptation to local needs and preferences. This approach is often used when companies operate in diverse markets with different cultures, languages, and regulations. In this scenario, Jeff's company is opening new operations in three different countries with distinct cultures and business environments. Therefore, the multidomestic approach is the most appropriate choice. The global approach, on the other hand, would involve maintaining centralized control and standardization across all operations, which may not be feasible or desirable given the local differences. The ethnocentric approach would entail relying on a centralized, home country perspective and set of values, which may lead to cultural clashes and ineffective decision making in foreign markets. The multinational approach is similar to the multidomestic approach but tends to maintain more centralized control from the home country. The borderless organization approach seeks to erase national boundaries and create a seamless global organization, which may not be feasible or practical in this case.

Question 11

As their international operations grew,Jennifer and James decided to decentralize management and hire foreign nationals to run the business in their local countries.Their firm has developed into a ________.
A)multidomestic
B)multinational corporation
C)global organization
D)global trade alliance
E)joint venture

Accepted Answer

The answer of As their international operations grew,Jennifer and James...

Question 12

Refer to the Scenario below to answer the questions that follow.
The European Expansion (Scenario)
As a manager at a growing Canadian company,Samantha has been asked to develop a strategy to expand the company's operations into the European market.Although the company president has provided some basic guidelines about acceptable levels of risk and investment,there are still many factors in the legal/political,economic,and cultural environments that Samantha must take into consideration in her proposal.
-Samantha will recommend forming a strategic alliance with a French-based company that promises to market her company's products in several EU countries in exchange for access to her company's distribution network in Canada and the United States.This strategy will require less investment than ________.
A)exporting
B)licensing
C)franchising
D)establishing a joint venture
E)establishing a subsidiary

Accepted Answer

Establishing a subsidiary typically requires a significant investment as it involves setting up a new entity in the foreign market, whereas a strategic alliance involves collaboration with an existing company, which generally requires less investment.

Question 13

Refer to the Scenario below to answer the questions that follow.
Environmental Uncertainty (Scenario)
It is safe to say that managers do not have complete control over organizational outcomes; the environment has a significant impact.It is important for managers to learn both what the components of the environment are and how the environment will affect their organizations.
-An Internet-based company that is facing many new competitors and frequent technological breakthroughs is operating in what kind of environment?
A)divergent
B)static
C)flexible
D)dynamic
E)stable

Accepted Answer

The environment described in the scenario is one with frequently changing technological breakthroughs and new competitors, which indicates a dynamic environment.

Question 14

A new and exciting opportunity has appeared that enables Jennifer and James to form a joint venture with a bank in Japan.This partnership will involve less risk and commitment than ________.
A)exporting
B)foreign contracting
C)setting up a foreign subsidiary
D)licensing
E)franchising

Accepted Answer

Setting up a foreign subsidiary involves more financial and legal commitment than forming a joint venture with a bank in Japan. Exporting, foreign contracting, licensing, and franchising also involve varying levels of risk, investment, and commitment.

Question 15

Jennifer and James decide to allow a company in Hong Kong to use the rights to their software,brand name,and product specifications in return for a lump-sum payment.This agreement is known as a(n)________.
A)strategic alliance / joint venture
B)export alliance
C)franchise
D)foreign subsidiary

Accepted Answer

The agreement described is a franchise agreement, where the Hong Kong company is paying for the right to use the software, brand name, and product specifications of Jennifer and James' company. A strategic alliance/joint venture typically involves two or more companies working together to achieve a specific goal. An export alliance is a type of strategic alliance focused on exporting goods to a foreign market. A foreign subsidiary involves a company setting up a separate entity in a foreign country. None of these options fit the scenario described in the question.

Question 16

An online brokerage company like E*TRADE that is dealing with many environmental components and requires a high level of knowledge about Internet operations is operating in a highly ________ environment.
A)flexible
B)static
C)stable
D)complex
E)divergent

Accepted Answer

The company is dealing with multiple environmental components and requires expertise in Internet operations, indicating a high level of complexity. A flexible environment suggests a more adaptable and changing situation, whereas a static or stable environment would not require as much knowledge or adaptability. Divergent is not an appropriate term to describe the environment.

Question 17

If Jeff's company eliminated country-designated locations and reorganized based on industry groups,it would best be described as a ________.
A)transnational organization
B)multidomestic organization
C)global business alliance
D)multinational corporation
E)polycentric organization

Accepted Answer

A transnational organization eliminates country-designated locations and reorganizes based on industry groups, which allows for more fluidity and flexibility in operations across borders. This approach focuses on maximizing efficiency and effectiveness by integrating operations globally.

Question 18

A grocery store that has few components in its environment and minimal need for knowledge about its suppliers or customers is operating under conditions of low ________.
A)complexity
B)flexibility
C)stability
D)divergency
E)simplicity

Accepted Answer

Complexity refers to the number of components and the degree of knowledge required about them in a system. In the case of a grocery store with few components in its environment and minimal need for knowledge about its suppliers or customers, the complexity is low.

Question 19

Refer to the Scenario below to answer the questions that follow.
International Entrepreneurs (Scenario)
Jennifer and James have formed an entrepreneurial venture to develop software for banks and other financial institutions.Their company is growing,and in looking for opportunities in the future they decide to explore international operations.
-By establishing their company's operations in Canada,Jennifer and James hoped that an existing regional trade agreement would help them to avoid tariffs in ________.
A)Japan and Germany
B)Europe
C)South America
D)Mexico and the United States
E)Southeast Asia

Accepted Answer

Mexico and the United States are part of the North American Free Trade Agreement (NAFTA) which eliminates tariffs on goods traded between the two countries. As a result, by establishing their company's operations in Canada, Jennifer and James would benefit from the NAFTA and avoid paying tariffs when exporting their software to Mexico and the United States.

Question 20

Refer to the Scenario below to answer the questions that follow.
Managing Stakeholder Relationships (Scenario)
Daniel Guzman has been hired by Flair Fashion Corporation,a manufacturer of precious metal jewelry.Flair Fashion has been having problems with some of its major stakeholders.These include poor quality materials from its suppliers and complaints from its customers.Daniel has been hired to help resolve the current issues and to develop a plan for managing other stakeholder problems in the future.
-Daniel begins by defining stakeholders as ________.
A)the constituencies in the external environment that are employed by the organization
B)the constituencies in the external environment that own shares in the organization
C)the constituencies in the external environment that compete with the organization
D)the constituencies in the external environment that regulate the industry
E)any constituencies in the external environment that are affected by the organization's decisions and actions

Accepted Answer

In the scenario, Daniel defines stakeholders as "any constituencies in the external environment that are affected by the organization's decisions and actions." This definition encompasses all possible stakeholders, including suppliers and customers, which are the stakeholders Flair Fashion Corporation is having problems with. Therefore, choice E is the correct answer.

Quiz 2: Environmental Contraints on Managers

You also plan to discuss other regional trading alliances like the one in Southeast Asia called ________.

Daniel is made aware of a new threat by a local group that opposes the mining of a raw material used in the manufacturing process.The company is now likely facing a ________.

Before you conclude your speech,you intend to explain how the WTO operates as ________.

To help explain the main advantages of regional trade alliances,you will point out that EU member countries now have ________.

If Jeff's company decides to open completely new operations in Thailand,Japan,and Korea,and decides to decentralize management and decision making to the local countries,it would be following a ________ approach.

As their international operations grew,Jennifer and James decided to decentralize management and hire foreign nationals to run the business in their local countries.Their firm has developed into a ________.

A new and exciting opportunity has appeared that enables Jennifer and James to form a joint venture with a bank in Japan.This partnership will involve less risk and commitment than ________.

Jennifer and James decide to allow a company in Hong Kong to use the rights to their software,brand name,and product specifications in return for a lump-sum payment.This agreement is known as a(n) ________.

An online brokerage company like E*TRADE that is dealing with many environmental components and requires a high level of knowledge about Internet operations is operating in a highly ________ environment.

If Jeff's company eliminated country-designated locations and reorganized based on industry groups,it would best be described as a ________.

A grocery store that has few components in its environment and minimal need for knowledge about its suppliers or customers is operating under conditions of low ________.