MGT 300: Chapter 4
______ is a shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people.
A culture
Problems with using expatriate employees include: (select all that apply)
failure to effectively manage the return of expatriates ultimately reducing the company's return on investment, high costs to the organization sending their employees overseas as expatriates, and early turnover
What is an appropriate synonym for countertrading?
bartering
Polycentric managers
believe that native managers in foreign offices should understand native personnel and practices and be left alone by the home office
What tool can a government use to prevent the practice of dumping?
import quotas
True or false: In-group collectivism was identified in the GLOBE project as a reflection of how much leaders should encourage and reward loyalty to the social unit.
False
True or false: It is always profitable for a company to expand internationally when it has the means to do so.
False
______ managers accept that there are differences and similarities between home and foreign personnel and practices. These types of managers believe that they should use whatever techniques are most effective to get the job done.
Geocentric
What five countries are part of the BRICS countries?
India, Russia, South Africa, China, and Brazil
Which scenario is an example of an import quota?
The US limits the amount of raw sugar that can be brought in from other nations
How did the BRICS countries earn their title?
They were seen as promising markets for finance capital.
True or false: More than 7,000 different languages are spoken throughout the world.
True
True or false: One negative effect of globalization for US manufacturers is the possible loss of control over quality and standards for their products that are manufactured overseas.
True
Which cultural dimension reflects people's preference for relying on social norms?
Uncertainty avoidance
Which nation decided to remove itself from the European Union in 2016?
United Kingdom
The practice of producing goods domestically and selling them outside the country is referred to as _______.
exporting
High-end Levi's jeans that are produced in the United States but then sold to stores in China and France are an example of US _____.
exports
Maquiladoras are
foreign-owned manufacturing plants that operate in Mexico in exchange for employing Mexican citizens.
Countries grant most favored nation status as a way to
promote strong and more stable ties between countries
A US company that chooses to use suppliers outside of the United States to provide labor, goods, or services, is practicing _______.
global outsourcing
The trend of the world economy toward becoming a more interdependent system is referred to as _______.
globalization
In a ______ culture, people rely heavily on situational cues for meaning when communicating with others.
high-context
As a cultural dimension, humane orientation refers to _____.
how much a society encourages individuals to be caring, kind, and fair
Uncertainty avoidance is defined as _____.
how much a society relies on social norms and procedures to make future events more predictable
East-West Traders, based in Los Angeles, buys home accessories from Italy and then resells them domestically. What process is this company using to obtain goods?
importing
When a company obtains goods from outside the country, to be resold in domestic markets, it is using _____.
importing
Which of Hofstede's cultural dimensions is concerned with how much people prefer to focus on themselves or how much they look after one another?
individualism/collectivism
A civil war in another country is an example of how _____ can affect international companies that do business in that country.
instability
Keri is uncomfortable when someone leans in close to talk to her. Which cultural dimension causes Keri anxiety?
interpersonal space
A nation's culture: (select all that apply)
is made up of many nuances, unconsciously teaches us how to walk, talk, behave, and relate to other people, can seem intangible and perplexing to outsiders, and operates in large part outside of individual awareness
The United States government has put a limit on the number and types of olives that can be imported. This limit is an example of an import _____.
quota
The masculinity/femininity dimension identified by Hofstede reflects how people value performance-oriented traits or how much they value _____ traits.
relationship-oriented
When a country places a tariff on an imported product, it is _____.
requiring a fee be paid on the import
Individuals in societies with high _______ believe that power should be distributed unequally within organizations and throughout society.
power distance
Which situation demonstrates specifically how political instability affects businesses that want to establish themselves abroad?
A province splits off from a larger country, becomes its own independent state, and begins printing its own currency.
_____ managers believe that their native country, culture, language, and behavior are superior to all others.
Ethnocentric
True or false: Among the BRICS countries, India is most well known for its manufacturing advantages.
False
What are two ways the Internet and World Wide Web give a small business the ability to go global?
It is easier to get started because products can be sold online. and A small business can adjust to changes in the business environment quicker.
There is currently a trend known as "reshoring" in the fashion industry. What is occurring with this trend?
Manufacturers are moving production of garments back to the US to respond more quickly to consumer trends.
What are two negative effects of globalization on Americans?
Potential threats to information security resulting from shared data and Loss of jobs, particularly in manufacturing, to workers in other countries.
Of the many reasons companies decide to expand internationally, what do all the reasons have in common?
They help the company make or save money.
History shows that countries used to be concerned only with regulating their own economies. As times have changed, goods, people, and money now move more freely throughout the world. These changes reflect the idea of _____.
a global economy
In order to protect its domestic industry, Mexico might assess a tax on canned tuna that is imported from other countries. This tax is an example of _______.
a tariff
The practice of a foreign company exporting products abroad at a lower price than in the home market as a way to drive down the price of the domestic product is called _____.
dumping
The Globe Project's, "performance orientation" dimension is how much a society _____.
encourages and rewards members for improvement and excellence
Understanding context: (select all that apply)
enhances your ability to fit comfortably into a particular context, enables you to more effectively communicate with and influence others, and gives you insights that let you correctly interpret the "what" and "why" of someone's behavior
Many fast-food chains have operations in foreign countries because these restaurant corporations allow a foreign company to pay a fee to use the name of the fast-food restaurant. The foreign company would also need to pay a share of the profits to the fast-food corporation. What type of situation does this describe?
franchising
The ability to move goods and services among nations without any political or economic obstruction is called _____.
free trade
Institutional collectivism is defined as _____.
how much individuals should be encouraged and rewarded by their leaders for loyalty to the social unit
Which of these is the best option when communicating across cultures in business?
learn the local language
When companies find that a product's demand is declining domestically, they may expand internationally in order to tap into _____________.
new markets
One of the positive effects that globalization has had on the US economy is that _____.
new products and services can be produced more cheaply
The GLOBE Project dimension that focuses on how much unequal distribution of power should exist in organizations and society is _____.
power distance
Athletic wear made by Under Armour is undergoing a change as the manufacturer focuses on a "local for local" initiative as it finds ways to bring manufacturing jobs back to the United States. The actions taken by Under Armour demonstrate the concept of _____.
reshoring
A(n) _____ is the prohibiting of trade on certain types of products, services, or technology to another country for specific reasons such as humanitarian purposes.
sanction
Another name for a joint venture is a
strategic alliance.
The process of buying and selling products and services through computer networks is called _____.
e-commerce
The World Trade Organization, the World Bank, and the International Monetary Fund are the three principal organizations designed to facilitate international _____.
trade
The use of government regulations to limit the import of goods and services is called _____.
trade protectionism
An economic community, also known as a _______, is a group of nations within a certain geographical region that have agreed to remove trade barriers with one another.
trading bloc
The Trans-Pacific Partnership (TPP) is a trade agreement among _____ countries that border the Pacific Ocean.
11
The GLOBE project studies _____ cultural dimensions.
9
According to the table on the top 10 U.S. trading partners in goods, to which nation does the US export the largest volume of goods?
Canada
What three nations formed the North American Free Trade Agreement (NAFTA)? Check all that apply.
Canada, United States, and Mexico
According to the table on the top 10 U.S. trading partners in goods, from which nation does the US import the highest volume of goods?
China
Among the BRICS countries, which nation has the second-largest economy in the world just after that of the United States?
China
Based on Figure 4.1, list in order the methods of expanding internationally according to their risk and cost of investment. Place the method with the lowest risk and investment at the top of the list.
Global outsourcing Importing, exporting, and countertrading Licensing and franchising Joint ventures Wholly-owned subsidiaries
Which cultural dimension identified by the GLOBE Project reflects the extent to which individuals are rewarded for loyalty to the group, rather than pursuing individual goals?
Institutional collectivism
Identify the three principal organizations designed to facilitate international trade.
International Monetary Fund, World Trade Organization, and World Bank
______ time is a preference for doing one thing at a time.
Monochronic
What are three positive effects of the global economy for the United States? (Select all that apply.)
More cultural intermingling, New markets for American exports, and Greater exchange of information and culture
A disposable diaper manufacturer hopes to capitalize on a foreign country's high birth rate by introducing its product line in that nation. Which of the reasons for expanding internationally does this demonstrate?
New markets
What three countries are part of the Trans-Pacific Partnership?
Peru, Japan, and Mexico
______ is a preference for doing more than one thing at a time.
Polychronic time
The Internet and World Wide Web allow almost any business to be global. What are two important results of this process?
Small companies can maneuver faster. and Small companies can get started more easily.
According to the findings of the GLOBE researchers, which two attributes of leadership are found to be universally liked?
Visionary and Inspirational
During her interview, Sicily told the recruiter that she had worked overseas for the past six years where she had to learn a new language, understand the social rules of the country she was living in and adjust to cramped living quarters. This recruiter would see these conditions as a demonstration of Sicily's _____.
adaptability
In 2012, European countries refused to import oil from Iran. This refusal is an example of _____.
an embargo
One way to protect US makers of refrigerators from international competition is to limit the number of foreign-made refrigerators that can be imported into the country. This would be an example of
an import quota.
E-commerce is the
buying and selling of products and services through computer networks
The European Union: (select all that apply)
consists of 28 trading partners in Europe, has eliminated nearly all international trade barriers between its member nations, has experienced pressure from a recent influx of refugees from war-torn countries, and is the world's largest free market
The situational or environmental characteristics that affect a person's behavior are called _____.
context
What two things are credited with creating the "global village?"
convenient air travel and electronic media
If the currency exchange rate is not conducive for business, a US-based company may decide to exchange goods for goods rather than goods for money. This is known as _____.
countertrading
The ability to operate in different cultures is the definition of _____.
cross-cultural awareness
The GLOBE project studies the _____ dimensions involved in organizational and leadership processes.
cultural
Dutch researcher Geert Hofstede identified four cultural dimensions by studying _____.
data on IBM employees from dozens of countries
A company that allows a foreign company to pay it a fee to make or distribute its products or services is engaging in _____.
licensing
A person from Germany is from a(n) ____________ culture, because shared meanings are primarily derived from written and spoken words.
low-context
In a ______ culture, shared meanings are often derived from written and spoken words.
low-context
Licensing would be more common for a _____ company.
manufacturing
Foreign companies with manufacturing plants that are allowed to operate in Mexico with special privileges in exchange for employing Mexican citizens are known as _______.
maquiladoras
Select all of the original cultural dimensions identified by the Dutch researcher Geert Hofstede:
masculinity/feminity, individualism/collectivism, uncertainty avoidance, and power distance
When Matt was meeting with Susan, he focused exclusively on the meeting. He did not check his incoming texts or respond to a phone call. This reflects a preference for ______.
monochronic time
What term is defined as a foreign subsidiary that is totally owned and controlled by an organization?
Wholly-owned subsidiary
During his most recent trip to Mexico, Gerard was able to purchase 15 Mexican pesos for each American dollar he had. This transaction is an example of _____.
the exchange rate
People in a society with high _______ would likely favor rules and a well-structured environment rather than an environment that embraces change and innovation.
uncertainty avoidance
Outsourcing is
using suppliers outside the company to provide goods and services
What two businesses would be categorized as "multinational organizations," as opposed to "multinational corporations"?
International Red Cross and World Health Organization
What is one reason that a company would choose to expand internationally?
Location of materials
______ managers believe that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone.
Polycentric
Which of these events are credited with setting up the conditions by which the global economy - goods, people, and money moving freely throughout the world - could flourish.
The fall of the Berlin Wall, The worldwide trend of governments deregulating their economies, and Asian countries opening their economies to foreign investors
Refer to Figure 4.1 in the text. Which method of international expansion is likely to hold the highest risk and investment for the organization?
Wholly owned subsidiaries
A group of nations within a geographical region that have agreed to remove trade barriers with one another is called _____
a trading bloc
The cultural dimension that represents the degree to which people are expected to be confrontational and competitive is called
assertiveness.
The extent to which a society should minimize discrimination and role inequalities between men and women is called gender ______.
egalitarianism
NAFTA was intended to _____ the trading bloc.
eliminate nearly all of the tariffs and quotas for
The rate at which the currency of one country can be exchanged for the currency of another country is called the _____ rate.
exchange
Lisette is a Canadian manager working in a foreign country on assignment for her company. Lisette is therefore a(n) ______.
expatriate
After Hugo Chavez became President of Venezuela, the government abruptly took over 60 domestic and foreign oil field service companies. This is an example of _______.
expropriation
The government's seizure of a domestic or foreign company's assets is known as _______.
expropriation
Nations are easily able to trade with one another when there aren't any political or economic obstructions hampering the process. This is known as _____.
free trade
Which of the GLOBE projects' cultural dimensions is concerned with how much people delay gratification by planning and saving?
future orientation
A form of a foreign subsidiary that is built from scratch by the owning organization is called a _____.
greenfield venture
In order to expand internationally, Bolt Energy Corp. based in Houston, decides to build a new energy plant in Finland rather than purchase an existing company. What format is this company using to expand internationally?
greenfield venture
Reasons for global outsourcing, or offshoring, include that the foreign supplier
has resources not available in the U.S., has labor that is cheaper than American labor, and has special expertise
A society that encourages people to be caring, kind, friendly, fair, and generous is said to have a(n) ______ orientation.
humane
Globalization is the trend of the world economy becoming a more _______ system.
interdependent
What type of business practice is in use when a US firm partners with a foreign company to share the risks and rewards of starting a new enterprise together?
joint venture
If Norway decided to reduce import duties for Germany, which allowed Germany to export more cars to Norway at a lower cost, it would create a stronger tie between these two countries. In this situation, Norway is granting Germany _____ trading status.
most favored nation
A nonprofit organization that has operations in several countries is called a(n) _____ organization.
multinational
A company that has operations in several countries is called a(n) ______.
multinational corporation
Wal-Mart is an example of a(n) ______ because it is a business with operations in multiple countries.
multinational corporation
It would be common practice to deal with multiple clients at once in a culture that _____.
operates on polychronic time
Using suppliers outside of the company to provide materials to make goods and services is called _____.
outsourcing
Another way to describe ethnocentrism is as a narrow view in which people see things solely through their own perspective. This is called _____.
parochialism
Companies involved in a franchise deal are required to do what two things?
pay a fee to use the brand name of a company and provide a share of the profits to the brand name company
The Foreign Corrupt Practices Act makes it illegal for employees of US companies to _____.
pay bribes to political decision makers in foreign countries
The United States prohibits the export of any materials that would help North Korea in its nuclear program. This prohibition is a type of _____.
sanction
Companies have to go where their basic _____ are located.
supplies
Which of these are examples of devices countries use to exert trade protectionism? Choose all that apply.
tariffs, embargoes, and import quotas
A tariff is a type of _____.
tax
In the GLOBE project, the cultural dimension of assertiveness represents _____.
the degree to which a society expects people to be confrontational and competitive
Within the GLOBE project, the nature of a culture's future orientation is described as ______.
the extent to which a society encourages investment in the future
Gender egalitarianism is described as _____.
the extent to which a society should minimize gender discrimination and role inequalities
The "shrinking" of time and space as air travel and the electronic media make it easier for people of the world to communicate with one another refers to _____.
the global village
When forced to select between a US-produced product and a less expensive imported product, _____ of Americans say they would choose the cheaper option.
two-thirds
People in the United States are more likely to tolerate risk than people in Japan. Which of Hofstede's dimensions does this describe?
uncertainty avoidance
Which statement best describes geocentric managers?
what's best is what's effective, regardless of origin
A complete ban or prohibition of trade of one country with another is called a(n) _____.
embargo
The Foreign Corrupt Practices Act: (select all that apply)
has prompted the United Nations Global Compact to level the playing field by promoting anti-corruption standards for business and creates a competitive disadvantage for those working in foreign countries in which government bribery is the only way to obtain business
Which form of communication would be the most appropriate in high-context cultures?
having a face-to-face conversation with another person
The extent to which a society encourages and rewards members for improvement and excellence is the _____ dimension of the GLOBE project.
performance orientation
Which attribute of leadership did GLOBE researchers find to be universally liked throughout the world?
Team builders
True or false: Currently, the United States exports more than it imports.
False
How closely people stand when talking to another person and how often they touch each other in casual conversation are aspects of which basic culture area?
Interpersonal space
When Laura, an American student, studied in Argentina one summer, she was startled by how closely people stood together and how often they touched one another during casual conversation. What basic culture dimension is Laura noticing?
Interpersonal space
Which of these represent culture areas that are important in global management? (select all that apply)
Language, Interpersonal space, Communication, Time Orientation, Religion, and Law & Political Stability
Adieu Enterprises, based in Toronto, decides to expand into the South American market. To do so, it establishes a separate operation in Brazil that is owned and controlled in its entirety by Adieu. Which form of expanding internationally does this represent?
Wholly-owned subsidiary
According to House's investigation of cultural dimensions, ______ captures the extent to which members of a given culture value their friends, family, and work.
in-group collectivism
It is more common in China than in the United States for people to be more concerned about the group than about themselves. Which of Hofstede's dimension does this demonstrate?
individualism/collectivism