Chapter 3

Which of the following characteristics distinguishes a multinational corporation?

All of these choices are correct

A report from research firm eMarketer indicated that which of the following countries would soon overtake the United States as the world's largest retail market?

China

As a first step into international business, which two countries are most companies locating in today?

China and India

German, Swiss, and North American cultures are among the high-context cultures.

False

Licensing means engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies.

False

Market risk is defined as the risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments.

False

Which of the following refers to engaging in the international division of labor to obtain the cheapest sources of labor and supplies?

Outsourcing

Business has become a unified, global field, and events and ideas that influence organizations in one country are likely to influence organizations in other countries as well.

True

Cultural intelligence refers to a person's ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.

True

Ethnocentrism refers to a natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values.

True

Geocentric companies are truly world-oriented and favor no specific country.

True

MNC top managers regard the entire world as one market for strategic decisions; resource acquisition; and location of production, advertising, and market efficiency

True

Seeking cheaper sources of materials or labor offshore is called offshoring.

True

The basic management functions of planning, organizing, leading, and controlling are the same whether a company operates domestically or internationally.

True

The goal of the European Union is to create a powerful single market system for Europe's millions of consumers

True

Which of the following has a goal to guide the nations of the world toward free trade and open markets

WTO

MNCs that are truly world-oriented and favor no specific country are considered _____.

geocentric

Companies that have a competitive edge tend to think ___

globally

A country that places emphasis on fairness and values kindness would be described by the GLOBE Project as high in _____.

humane orientation

Jada has a high tolerance for the unstructured, the unclear, and the unpredictable. She can best be described as having ___

low uncertainty avoidance

The Maquiladora industry along the Texas-Mexico border on the Mexico side uses cheap labor for assembling products. This lowers the price for U.S. consumers and is an example of _____.

outsourcing

Collectivist values are represented in the social framework of which of the following countries?

Mexico

Which trade agreement went into effect in 1994 and merged the United States, Canada, and Mexico into a single market?

NAFTA

Due to politically based events or actions by host governments, political risk is defined as an organization's risk of loss of _____.

all of these choices

The concept that proposes that corporations can alleviate poverty and other social ills by selling to the world's poorest people is known as _____.

bottom of the pyramid