MGT Ch.3

Of the approaches to pursuing international markets, developing a ________ involves the greatest commitment and risk.

franchise joint venture strategic alliance D) foreign subsidiary

steps to becoming a global company

global sourcing exporting/importing licensing franchising strategic alliance (joint venture) foreign subsidary

least risky step in becoming a global company

import/export

A multinational corporation (MNC) ________.

is any organization that maintains operations in more than one country. is defined as a company that has its home base in the United States and various operations overseas includes any company that exports goods overseas is defined as any company that has no home base

riskiest step in becoming a global company

joint venture

When a U.S. ship yard purchases raw materials from locations around the world, for example steel from China, this is called ________.

licensing a joint venture C) global sourcing. a global alliance

Joint ventures are a type of ________.

licensing franchise foreign subsidiary D) strategic alliance

Status in France within a corporation is largely ________.

measured in the same way it is in the United States based on how much money a person makes based on such things as seniority and educational level based on an individual's personal accomplishments

Which choice constitutes the typical first step for an organization that is "going global"?

outsourcing franchising licensing strategic alliance

Shana's company "went global" several years ago. Which one of the following was likely to have been the first step it took in going global?

outsourcing importing exporting licensing

Global Leadership and Organizational Behavior Effectiveness (GLOBE)

research program continues the ongoing cross cultural investigation of leadership and national culture

A global village can be best characterized as a business climate in which there are ________.

rigid international boundaries B) no international boundaries rigid rules and standards no rules or standards

first step to become a global company

sourcing for goods/product

When an organization engages in ________, it uses managerial and technical employee skills and abilities from other countries.

talent globalization. marketplace globalization financial globalization resource globalization

Social Responsibility

the obligation of a business to contribute to society

social obligation

the obligation of a business to meet its economic and legal responsibilities and nothing more

ethics

the principles of right and wrong that guide an individual in making decisions

Franchising is used widely by ________.

universities accounting firms C) restaurant chains electric power companies

social responsiveness

when a firm engages in social actions in response to some popular social need

what does it mean to be global?

Exchanging goods and services with consumers in other countries Using managerial and employee talent from other countries Using financial sources and resources outside home country

global corporation

Firm that has integrated worldwide operations through a centralized home office

theory of justice view of ethics

View that says ethical decisions are made in order to enforce rules fairly and impartially

rights view of ethics

View that says ethical decisions are made in order to respect and protect individual liberties and privileges

utilitarian view of ethics

View that says ethical decisions are made solely on the basis of their outcomes or consequences

global village

a boundaryless world where goods and services are produced and marketed worldwide

Sustainability

a company's ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies

A Coca-Cola bottling plant in Bolivia is wholly owned by a local businessperson. What kind of venture is this plant likely to be?

a franchise B) a licensed plant. a foreign subsidiary a joint venture

foreign subsidiary

a local operation completely owned by a foreign firm

Shana is considering forming a partnership with a Dutch corporation that will create an entirely new company called Half Moon. What kind of enterprise will Half Moon be?

a multidomestic corporation a foreign subsidiary C) a joint venture. a domestic subsidiary

Parochialism

a narrow view in which people see things solely through their own perspective

global strategic alliance

a partnership in which foreign and domestic firms share resources and knowledge for mutual gains

joint venture

an agreement between two or more companies to share a business project

MNC (multinational corporation)

any type of international company that maintains operations in multiple countries

Running Bear is very proud of his Native American heritage. He believes the world would be a much better place if people the world over adhered to his views and followed the ways of his people. Which one of the following best describes Running Bear's attitude?

assertiveness B) parochialism humane orientation collectivism

dimensions of cultural differences (GLOBE)

assirtiveness future orientation gender differentiation uncertainty avoidance power distance individualism/collectivism in-group collectivism performance orientation humane orientation

Transnational Corporation (borderless)

country where business is done doesn't matter you pick a place where its most efficient/effective

Which one of the following is usually found in the final stage of an organization's global evolution?

exporting products to other countries outsourcing jobs to foreign countries C) establishing strategic alliances with partners. licensing products in foreign countries

Gerjuan's employer, a major Egyptian manufacturer, would like to expand its operations into Europe but does not have cash on hand for so large a project. Gerjuan has been asked to identify lenders with low interest rates, and his employer does not care where they are located. In carrying out his assignment, Gerjuan is engaged in ________.

financial globalization. talent globalization creating a strategic alliance marketplace globalization

Multidomestic Corporation

An international company that decentralizes management and other decisions to the local country

licensing and franchising

Legal process allowing use of manufacturing/patents/knowledge

Her Spanish supervisor was appalled when Mary, an American expatriate, boldly marched into his office in Barcelona to offer a suggestion to solve a production problem. Which one of the following best explains the supervisor's response?

Mary did not understand gender differences related to the Spanish culture. The supervisor was a very assertive person. Spain ranks high in power distance.. Spain ranks low in uncertainty avoidance.

what determines ethical behavior?

Morality values personality experience issues faced

________ is a cultural dimension measured by Hofstede in which people identify strongly with a group within a society.

Power distance Collectivism Individualism Uncertainty avoidance

A global corporation ________.

centralizes management in a single home country. decentralizes management so that each local country's operation is managed locally decentralizes management so there is no single home location has two main management locations located on different sides of the globe