Management Principles Chapter 4

Which of the following are negative effects of globalization on the United States? A. Service as well as manufacturing jobs are moved offshore. B. Increased enrollment in universities and college. C. Global investment in mortgages contributed to the subprime mortgage meltdown and recession is a negative effect of globalization. D. Outsourcing of jobs to cheaper labor overseas.

A. Service as well as manufacturing jobs are moved offshore. C. Global investment in mortgages contributed to the subprime mortgage meltdown and recession is a negative effect of globalization. D. Outsourcing of jobs to cheaper labor overseas.

Companies may be entice into going abroad with increased access to foreign capital through which two sources?

1. Foreign companies 2. Foreign government subsidies

According to Nicholas Negroponte, what types of business trends will we have in the future when the global market is driven by electronic information?

1. Huge companies will merge into even larger companies. 2. Small, fast moving start-up companies will succeed.

What two reasons explain how the Internet and World Wide Web give a small business the ability to go global?

1. It is easier to get started because products can be sold online. 2. The business can adjust to changes in the business environment quicker.

The three events that Rosabeth Moss Kantor considered to be important factors for the emergence of the global economy are:

1. the global trend of governments deregulating their economies 2. countries of the Pacific Rim began to open their economies to foreign investors 3. the end of communism in Eastern Europe

The primary aim of NAFTA was to abolish tariffs on:

99% of the goods traded

Which of the following is an example that illustrates the cross-cultural differences in personal space?

A North American talking with an Arab.

_________ is a shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people.

A culture

________ is a group of nations within a geographical region that have agreed to remove trade barriers with one another.

A trading bloc

_________ is a group of nations within a geographical region that have agreed to remove trade barriers with one another.

A trading bloc

According to the findings of the GLOBE researchers, which of the following are NOT attributes of leadership found to be universally liked? A. Asocial B. Problem solver C. Egocentric D. Excellence oriented E. Dynamic

A. Asocial C. Egocentric

Which of the following are commonly demonstrated by foreign work experience? A. Entrepreneurship B. Above average intelligence C. Independence D. Resourcefulness

A. Entrepreneurship C. Independence D. Resourcefulness

Foreign experience demonstrates which of the following five skills to management recruiters? A. Entrepreneurship B. Decisiveness C. Independence D. Analytical skills E. Resourcefulness F. Inquisitiveness G. Adaptability

A. Entrepreneurship C. Independence E. Resourcefulness F. Inquisitiveness G. Adaptability

Which four of the following are part of Houses's nine cultural dimensions? A. Gender B. Uncertainty avoidance C. Individualism versus Collectivism D. High-context versus low-context E. Power distance

A. Gender B. Uncertainty avoidance C. Individualism versus Collectivism E. Power distance

Which of the following terms refer to a type of foreign enterprise (subsidiary) that is not owned entirely by the parent company? A. License B. Wholly-owned C. Joint venture D. Franchise E. Greenfield venture

A. License C. Joint venture D. Franchise

Which of the following are major trading blocs? A. NAFTA B. CAFTA-DR C. MFNTS D. ASEAN E. WTO F. APEC G. Mercosur H. IMF

A. NAFTA B. CAFTA-DR D. ASEAN F. APEC G. Mercosur

Which of the following are important developments that have contributed to globalization? (Choose all that apply) A. The unification of the world market instead of many national ones. B. The rise of the "global village" and electronic commerce. C. The needs for more highly educated and skilled workers. D. The rise of both megafirms and Internet-enabled minifirms worldwide.

A. The unification of the world market instead of many national ones. B. The rise of the "global village" and electronic commerce. D. The rise of both megafirms and Internet-enabled minifirms worldwide.

Which of the following are included in the five basic culture areas that are important in global management? A. religion B. communication C. exchange rates D. language E. interpersonal space F. expatriates

A. religion B. communication D. language E. interpersonal space

__________ is an acronym for a group of 21 Pacific Rim countries whose purpose is to improve economic and political ties.

APEC

Which of the following is a trading bloc consisting of 11 countries in Asia?

ASEAN

According to management philosopher Peter Drucker, which of the following is the future of outsourcing.

All "support" work, such as information systems, will be outsourced.

Which three of the following are considered advantages that result from having foreign work experience? A. An easier career B. An advantage over peers C. More marketability D. A higher salary

B. An advantage over peers C. More marketability D. A higher salary

Which of the following terms defines a foreign subsidiary that is totally owned and controlled by an organization? A. Joint venture B. Wholly-owned subsidiary C. License D. Corporate franchise

B. Wholly-owned subsidiary

The five reasons companies expand internationally are: A. broader demographics B. avoidance of tariffs and import quotas C. improved international image D. new markets E. access to finance capital F. lower labor costs G. availability of supplies

B. avoidance of tariffs and import quotas D. new markets E. access to finance capital F. lower labor costs G. availability of supplies

Which country is the number one trading partner of the United States?

Canada

Which of the following explains why countries place tariffs on imported goods or impose import quotas? A. To encourage more attractive foreign investments B. To completely keep out foreign business C. To decrease the level of domestic competition D. To protect their own domestic industries

D. To protect their own domestic industries

Identify the three principal organizations designed to facilitate international trade. A. NATO B. NAFTA C. United Nations D. World Bank E. World Trade Organization F. International Monetary Fund

D. World Bank E. World Trade Organization F. International Monetary Fund

_________ managers believe that their native country, culture, language, and behavior are superior to all others.

Ethnocentric

The _________ consists of 27 trading partners in Europe (Please provide the full term.)

European Union

__________ mangers take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone.

Polycentric

_________ is a preference for doing more than one thing at a time.

Polychronic time

___________ expresses the degree to which a society's members accept unequal power among people, institutions, and organizations.

Power Distance

True of false: The World Trade Organization (WTO), World Bank, and International Monetary Fund (IMF) are the principal organizations designed to facilitate international trade.

TRUE

True or False: The term "global village" is used to describe the "shrinking" of time and space as air travel and the electronic media make it easier for people around the world to communicate with one another.

TRUE

True or false: Gregg Easterbrook believes as world economies become even more linked by computers, job stress will be become a 24/7 affair.

TRUE

True or false: It may be wise to consider the impact that religious differences have on the values of employee groups.

TRUE

True or false: Most favored nations is a trading status in which a country grants other countries favorable trading treatment such as the reduction of import duties.

TRUE

True or false: One of the positive effects of globalization on the U.S. economy is that foreign firms are building plants in the United States, revitalizing parts of industrial America.

TRUE

True or false: The purpose of the International Monetary Fund (IMF) is to assist in smoothing the flow of money between nations.

TRUE

True or false: The purpose of the World Bank is to provide low-interest loans to developing nations.

TRUE

The ___________ is designed to monitor and enforce trade agreements.

World Trade Organization

A form of foreign subsidiary that is built from scratch by the owning organization is called:

a greenfield venture

The cultural dimension that represents the degree to which people are expected to be confrontational and competitive is called _____________.

assertiveness

The exchange of goods for goods (bartering) is called:

countertrading

One of the most important success factors in a foreign assignment is _________ adaptability.

cultural

Quotas are used to prevent ______, the practice of a foreign company exporting products abroad at a lower price than the price in the home market in order to drive down the price of the domestic product.

dumping

The buying and selling of products and services through computer networks is called:

e-commerce

The extent to which a society should minimize discrimination and role inequalities between men and women is called gender _____________.

egalitarianism

A complete ban on the import or export of certain products is called a(n):

embargo

The _______ rate is the current rate at which one country's currency can be traded for another country's currency.

exchange

Susan is an American manager working in a foreign country; therefore Susan is a(n) __________.

expatriate

Domestically produced goods that are sold outside of the country are called:

exports

The movement of goods among nations without political economic obstruction is called ______ ________.

free trade

The extent to which a society values delayed gratification and investment, such as planning and saving, is called _________ orientation.

future

The increasing tendency of the economies of the world to interact with one another as one market instead of many national markets is commonly referred to as the _________ economy.

global

The trend of the world economy becoming a more interdependent system is called:

globalization

In Mexico, a ______ culture, people often rely on situational cues such as status or family connections to determine meaning when communicating with others.

high-context

Humane orientation is:

how much a society encourages individuals to be caring, kind, and fair

Institutional collectivism is:

how much individuals should be encourages and rewarded by their leaders for loyalty to the social unit

A trade barrier in the form of a limit on the numbers of a product that can be imported is called a(n):

import quota

When a company buys goods outside or its home country and then resells them domestically, it is __________ those goods.

importing

The extent to which people should take pride in being members of their family, circle of close friends, and their work organization is called ____-_______ collectivism.

in-group

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

The process of overseeing operations in organizations doing business in foreign countries is called _________ management.

international

Management that oversees the conduct of operations in or with organizations in foreign countries, whether it's through a multinational corporation or multinational organization is known as:

international management

When a U.S. firm forms a partnership with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country it is called a strategic alliance or a(n) ________.

joint venture

When one company allows a foreign company to pay it a fee to make or distribute the first company's product, without a requirement for profit sharing, it is called:

licensing

In a _____, shared meanings are often derived from written and spoken words.

low-context culture

The term used to describe manufacturing plants that are allowed to operate in Mexico with special privileges in return for employing Mexican citizens is called ________.

maquiladoras

A company that is a business firm with operations in several countries is a(n):

multinational corporation

When companies find that a product's demand is declining domestically, they may expand internationally in order to tap into _________.

new markets

A nonprofit organization that has operations in several countries is called a multinational __________.

organization

When a company uses suppliers outside the company to provide goods and services, it is called __________.

outsourcing

A narrow view in which people see things solely through their own perspective is called ________.

parochialism

The extent to which a society encourages and rewards members for improvement and excellence is called _________ orientation.

performance

A type of tariff designed to raise the price of lower cost imported goods in order to make domestic goods more competitive is called a(n) _________ tariff.

protective

A type of tariff that is intended to raise money for the government is a _________ tariff.

revenue

Electronic communications permit people to meet and build relationships with each other. This has contributed to the _________.

rise of the global village

A trade barrier in the form of a customs duty, or tax, that is levied mainly on imports is called a(n) ________.

tariff

The ongoing project focused on examining several core cultural dimensions of leadership and organizational processes is called:

the GLOBE project

The use of government regulations to limit the import of goods and services is called:

trade protectionism

The cultural dimension of House's model that reflects society's reliance on social norms and procedures during times of unpredictability is called ________ ___________.

uncertainty avoidance

Which of the following is NOT one of the five reasons why a company may chose to expand internationally? A. Avoidance of tariffs and import quotas B. Availability of supplies C. Access to finance capital D. Lower labor costs E. New markets F. Improved international image

F. Improved international image

True or false: Knowing the cultural tendencies of foreign business partners and competitors is generally not important for strategic competitive advantage.

FALSE

_________ is a form of licensing in which one company allows a foreign company to pay it a fee and a share of the profit in return for using the first company's brand name and a package of materials and services.

Franchising

Which of the following is NOT one of the major trading blocs?

GLOBE

__________ managers accept that there are differences and similarities between home and foreign personnel and practices. These types of mangers believe that they should use whatever techniques are most effective.

Geocentric

Eric, a recent graduate, decided to take a position overseas in his current company. In addition to being better positioned for future promotions and a higher salary, what is most likely the result?

He will be more marketable.

Which of the following is a cultural dimension that means people have a strong preference for certainty and conformity?

High uncertainty avoidance

The purpose of the _______ is to assist in smoothing the flow of money between nations.

International Monetary Fund

Which of the following ways of expanding internationally is likely to hold highest risk and investment for the organization?

Joint ventures

In Asia, a "yes" answer to a question simply means that the question was understood. It is not necessarily a sign of agreement as is common in the United States. This is an example of which cultural variation?

Language

________ is when a U.S. company allows a foreign company to pay it a fee to make or distribute its products or service, but without requiring a share of its profits.

Licensing

The _________, the largest trade bloc in Latin America, has four core member-Argentina, Brazil, Paraguay, and Uruguay (and Venezuela upon ratification by other countries)-and five associate members-Bolivia, Chile, Colombia, Ecuador, and Peru.

Mercosur

Which of the following is true of the impact of interpersonal space on cross-cultural relationships?

Misunderstandings in cross-cultural relationships are common when there are cultural difference in personal space beliefs.

_________ time is a preference for doing one thing at a time.

Monochronic