Chapter 3: managing in a Global Environment

Smiling less because people in the other culture do not smile very often

physical

This map shows the countries that are part of _____ highlighted in green. (Note: Highlighted countries will appear dark gray if you have red-green color blindness.)

the WTO

This country is becoming a rising power in software design, services, and precision engineering.

India

______ has the second-largest population in the world and is a major source of technological and scientific brainpower.

India

Which of the following are ways in which globalization impacts companies? Check all that apply.

- A company can take advantage of an expanding foreign market when its domestic market is not growing. - Divisional headquarters may be in more than one country -Products can be manufactured in countries where labor costs are less and then sold at a more competitive price.

As a manager for a company that is looking to expand to India, what should your company focus on? Check all that apply.

- information technology -Research and development opportunities

The customers for mountain sports equipment mostly have high disposable incomes. However, imagine that Peter, Thomas, and Wim want to market some products to the bottom of the pyramid in mountainous countries like Nepal and Bhutan. What advice would you give them? Check all that apply.

- Assign R&D the project of developing gear that meets basic needs for warmth and dryness but can be manufactured inexpensively -Recruit local people to work as salespeople and distributors. -Research what people with annual incomes of less than US $1,500 really need.

Carly interviews for the job—and she gets it! Her new boss says that what impressed him most was her global mindset, and he wants her to be a role model for other employees in the company. How can Carly best demonstrate how one acquires a global mindset? Check all that apply.

- Expressing a consistent curiosity about world affairs and the international business environment - Cultivating relationships with immediate coworkers from other cultures and people within and outside the organization in other countries

Which of the following statements correctly describes the European Union (EU)? Check all that apply.

-The global financial crisis of 2008 threatened the EU by exposing differences in the economic strength of its member states. -The EU introduced the euro, a common currency that facilitates travel, trade, and investment.

As Talia researches MNCs, she will find that they: Check all that apply.

-Ultimately integrate their diverse activities in a centralized headquarters function, which may be physically located in one or more countries -Transfer capital, technology, and people among their affiliates in various countries -Expect their executives to look at the business environment globally—as one market for strategy, sourcing, production, and sales and marketing

Which of the following companies has high uncertainty avoidance?

At Sipria Insurance, little has changed since the 1960s. Few employees even know how to use email, and most business is conducted by telephone or in person with a simple handshake. Since Sipria caters exclusively to older people who are less likely to use the Internet, its practices work well for the company.

Which concept is Novartis's marketing initiative based on?

Bottom of the pyramid

Foreign companies selling their products and services increasingly encounter tough competition from local businesses.

China

Which of the following companies has long-term orientation?

Hikooki Flight is a Japanese plane manufacturing company. Mr. Hikooki is a planner, and he knows what the company will be doing 25 years from now. He is constantly reminding his employees about the importance of creating efficient and reliable products so that the company does not need to do rework.

Which of the following companies has high femininity?

Quality of life is important at Social Science Systems. All employees are eligible for child care, elder care, or pet care services, and employees can take as many vacation days as they need, as long as they get their work done. Employees regularly cooperate with each other to cover difficult or undesirable work shifts.

If Carly shows the interviewer that she is familiar with European Union regulations and knowledgeable about how people in Germany prefer to do business, which dimension of her global mindset is she demonstrating?

cognitive dimension

Seeking out new ethnic restaurants and trying new dishes with unknown ingredients

emotional

_____ company emphasizes its home country culture throughout its operations, and it tends to staff key positions abroad with expatriates from its home country operations.

ethnocentric

Jerzy wants to keep his overall costs down and to enter into the international marketplace slowly and carefully. He is considering the use of countertrade, where he would send his shoes to Spain in return for high-quality Spanish cowhides.

exporting

Thomas Hodel helps Black Diamond by increasing the company's ______ , because he brings a European perspective to the U.S.-based business. When Thomas says, "It takes a long time to really figure out the differences in Europe," he is speaking of using the _____ aspect of cultural intelligence (CQ).

global mindset ;cognitive

A U.S. company is engaged in global _________ when it contracts with a call center in India to handle technical support requests from its customers.

global outsourcing

Jerzy knows that he will have to expand his operations if he wants to produce enough shoes for an international market. He has heard that there are shoe dyers in the Ukraine who will work for much lower prices than the dyers in his town charge. Jerzy is considering sending some of his work out to a Ukrainian shoe dying factory as a way to keep his costs down while he determines exactly how much demand exists for his product.

global outsourcing

Technology, especially the Internet, and international trade agreements have facilitated _______ , which includes the flow of trade and ideas across national borders.

globalization

In the United States, there is widespread _____ , a general belief that people should be able to take care of themselves. This is in contrast to the ______ , or belief that people should look after one another, that is prevalent in Mexico.

individualism; collectivism

In thinking about it, Jerzy realizes that he and Leon could create a shoe-manufacturing facility in Spain. Doing so would certainly require a large outlay of money, but Jerzy thinks that with his expertise in shoe design and Leon's expertise in navigating Spanish management and business practices, they could create a partnership that has true synergy.

joint venture

An MNC is ______ vulnerable to an economic downturn in a given national or regional economy, such as the United States or the European Union.

less

Managers with high cultural intelligence will be_____ effective when assigned to work in another country

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