Exam 3 Chapters 13, 14
T or F According to Hofstede's cultural dimensions theory, the United States has high uncertainty avoidance
False
T or F Cultural norms are usually written down and in accurate form.
False
T or F Differences in language, body language, and personal space generally have no impact on international business.
False
T or F Effective strategic control is especially important for companies operating in more stable environmental conditions
False
T or F Outsourcing is the most committed or highest level of international business involvement.
False
T or F According to Hofstede's cultural dimensions theory, the United States has a short time horizon or orientation.
True
T or F Manufacturers and service providers differ in the nature and consumption of their output.
True
T or F Performance standards should reflect organizational strategy.
True
T or F While just-in-time-inventory management promises lower costs, for such an approach to be effective, the supplier must be extremely reliable and relatively close to the production facility.
True
What is a multinational corporation (MNC)? A corporation, such as IBM, ExxonMobil, and Nestlé, that operates on a worldwide scale, without significant ties to any one nation or region A partnership formed to create competitive advantage on a worldwide basis A company that acquires goods in one country and sells them to buyers in another country A company that wants to do business in another country and finds a local partner (occasionally, the host nation itself) to share the costs and operation of the business
a. A corporation, such as IBM, ExxonMobil, and Nestlé, that operates on a worldwide scale, without significant ties to any one nation or region
The basic mission of which of the following is to oversee the international monetary system and help ensure stable currencies and exchange rates throughout the world? International Monetary Fund (IMF) World Bank Organization of Economic Cooperation and Development (OECD) World Trade Organization (WTO)
a. International Monetary Fund (IMF)
What focuses on the social, environmental, and economic impact of a company's operations equally and simultaneously? Triple bottom line approach Management control Zero-based budgeting (ZBB) Performance standards
a. Triple bottom line approach
Which of the following refers to behaviors that disrupt the group, draw attention to individual rather than group functioning, and detract from positive interactions? Antigroup roles Avoiding roles Cross-functional roles Storming roles
a. antigroup roles
Which of the following refers to a snapshot of the organization's financial position at a given moment that indicates what the firm owns and what proportion of its assets are financed with its own or borrowed money? Balance sheet Income statement Ratio analysis Balanced scorecard
a. balance sheet
The richness of a communication channel is defined as its ability to transmit information. its cost of transmission to the sender. its attractiveness to the receiver. the accuracy of the channel.
a. its ability to transmit information
Which of the following refers to the choosing of stimuli from the environment for further processing and is also known as filtering or screening? Perceptual selection Upward communication Body language Perceptual organization
a. perceptual selection
What term describes the process by which an individual learns the norms, values, goals, and expectations of the organization? Socialization Accommodation Facilitation Norming
a. socialization
What is ISO 14000? A strategy that involves improving existing processes and developing new processes to meet certain standards, which require organizations to produce no more than 3.4 defects per million opportunities An international management standard that provides a number of comprehensive environmental standards for businesses to ensure that they are limiting their negative environmental impact and improving environmental performance An international management standard that deals with quality, including providing a framework for companies to document records, train employees, test products, and fix defects A planning system that schedules the precise quantity of materials needed to make the product
b. An international management standard that provides a number of comprehensive environmental standards for businesses to ensure that they are limiting their negative environmental impact and improving environmental performance
What name is given to the principal means of controlling the availability and cost of financial resources? Financial audit Budgeting Balanced scorecard Screening control
b. budgeting
The Global Leadership and Organizational Behavior Effectiveness (GLOBE) project was begun in 1993 and intended to identify different _____ dimensions in its study of _____. legal; management cultural; leadership political; government economic; corporations
b. cultural; leadership
What term describes the physical facilities that support a country's economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems? Joint venture Infrastructure Strategic alliance Outsourcing
b. infrastructure
If companies do research to learn about cultural differences before engaging in trade in a particular country, then problems arising from these cultural differences can be unaffected. minimized. completely avoided. exploited.
b. minimized
The first step in the production process is designing a product. obtaining raw materials. determining consumer wants. hiring skilled workers.
c. determining consumer wants
What name is given to a bar chart that shows the relationship of various scheduling activities over time? PERT chart Process layout graph Gantt chart Total quality management graph
c. gantt chart
Which of the following refers to the exchange of information among individuals on the same organizational level, either across or within departments? Cluster chain Downward communication Horizontal communication Upward communication
c. horizontal communication
Which of the following is a scored category on the Balanced Scorecard? Management control External threats Internal processes Total inputs
c. internal processes
Which of the following refers to a small number of people with complementary skills who are committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually accountable? Task force Committee Team Formal group
c. team
What is the World Trade Organization (WTO)? An economic and political union of 28 member nations that are located primarily in Europe Comprised of ten Southeast Asian countries with the goal to promote economic growth and overall progress in the area via trade and security An economic organization whose basic mission is to oversee the international monetary system and help ensure stable currencies and exchange rates throughout the world A global association of member countries that promotes free trade
d. A global association of member countries that promotes free trade
Which of the following characteristics relates to global business (globalization)? Allows selected American firms desiring international trade to form monopolies in order to compete with foreign cartels Acquires goods in one country and sells them to buyers in another country The buying, selling, and trading of goods and services across national boundaries A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business
d. A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business
Which of the following refers to an economic and political union of 28 member nations that are located primarily in Europe? International Monetary Fund World Bank World Trade Organization (WTO) European Union (EU)
d. European union (EU)
What are functional groups? Groups that cut across the firm's hierarchy and are composed of people from different functional areas and possibly different levels Groups created by the organization that generally have their own formal structure Groups that arise naturally from social interaction and relationships and are usually very loosely organized Groups that perform specific organizational functions, with members from several vertical levels of the hierarchy
d. Groups that perform specific organizational functions, with members from several vertical levels of the hierarchy
Which of the following characteristics relates to a joint venture? A tax levied by a nation on goods bought outside its borders and imported into the country Exporting that involves bartering products for other products instead of for currency A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business When a company that wants to do business in another country finds a local partner (occasionally, the host nation itself) to share the costs and operation of the business
d. When a company that wants to do business in another country finds a local partner (occasionally, the host nation itself) to share the costs and operation of the business
A method of determining an organization's relative profitability and worth is: a balance sheet. a financial audit. an income statement. a ratio analysis.
d. a ratio analysis
What name is given to the sale of goods and services to foreign markets? Licensing Dumping Outsourcing Exporting
d. exporting
According to Hofstede's cultural dimensions theory, _____ tend to be self-reliant and place a high level of importance on freedom and ambition, while _____ place more value on the team than the individual. women; men collectivists; individualists men; women individualists; collectivists
d. individualists; collectivists
Which of the following characteristics distinguishes a team from the traditional definition of a group? Members share a collective identity. It is composed of two or more individuals. Members communicate with each other. It has a common purpose and goals and holds itself mutually accountable.
d. it has a common purpose and goals and holds itself mutually accountable
The defining characteristic of a self-directed work team is the member satisfaction and cohesion within the team. the number of members it requires to function well. the extent to which the leadership role is given to one member. the extent to which it is empowered by management.
d. the extent to which it is empowered by management
Which of the following refers to a management view that strives to create a customer-centered culture that defines quality for the organization and lays the foundation for activities aimed at attaining quality-related goals? Six Sigma Program Evaluation and Review Technique Quality control Total quality management
d. total quality management
Which of the following seeks to regulate overall organizational functioning through reliance on informal, organic structural arrangements? Ratio analysis Clan control Financial audit Bottom-up budgeting
B. clan control
Which of the following best describes management control? Includes all activities an organization undertakes to ensure that its actions lead to achievement of its objectives Processes to regulate overall organizational functioning through reliance on informal, organic structural arrangements Attempts to control the firm's overall functioning through formal, mechanistic structural arrangements Processes that are developed to provide assurance that an organization reaches its objectives relating to operational efficiency, accuracy of financial reporting, and regulatory compliance
a. Includes all activities an organization undertakes to ensure that its actions lead to achievement of its objectives
Which of the following refers to a temporary group of employees responsible for bringing about a particular change? Task force Formal group Project team Functional group
a. task force
When a manager helps new employees learn the group's norms and values, she is helping them with the process of communication socialization mentoring feedback
b. socialization
All of the following are examples of infrastructure EXCEPT power plants. stock exchanges. communication systems. railroads.
b. stock exchanges
What is operations management? The activities an organization undertakes to ensure that its products meet its established quality standards The development and administration of the activities involved in transforming resources into goods and services The use of computer systems to assist in the creation, modification, analysis, or optimization of a design The activities and processes used in making tangible products; used interchangeably with the term production
b.The development and administration of the activities involved in transforming resources into goods and services
What is just in time inventory management? Identifies the optimal number of items to order while minimizing certain annual costs that vary according to order size A computerized system that helps a company control all of its resources Minimizes the number of units in inventory by providing an almost continuous flow of items from suppliers to the production facility Determines how many supplies and goods are needed and keeping track of quantities on hand, where each item is, and who is responsible for it
c. Minimizes the number of units in inventory by providing an almost continuous flow of items from suppliers to the production facility
What term describes a trade arrangement in which one company allows another company to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee, or royalty? Quota Trading company Licensing International business
c. licensing
Trading companies offer all of the following EXCEPT warehousing. consulting. manufacturing. advertising.
c. manufacturing
Long-term decisions tend to focus on total volume. deviations from the norm. overall capacity. short-term capacity.
c. overall capacity
Which of the following characteristics relates to the North American Free Trade Agreement (NAFTA)? Established and supported by the industrialized nations in 1946 to loan money to underdeveloped and developing countries Allows selected American firms desiring international trade to form monopolies in order to compete with foreign cartels A global association of member countries that promotes free trade Effectively merged Canada, the United States, and Mexico into one market of about 400 million consumers by eliminating most tariffs and trade restrictions on agricultural and manufactured products among the three countries
d. Effectively merged Canada, the United States, and Mexico into one market of about 400 million consumers by eliminating most tariffs and trade restrictions on agricultural and manufactured products among the three countries
Which of the following characteristics relates to a cluster chain? The spreading of information by one person to many others Informal communication channels, found in virtually all organizations The exchange of information among individuals on the same organizational level, either across or within departments An exchange in which one person or a selected few share information with only a few others
d. an exchange in which one person or a selected few share information with only a few others
Which of the following refers to adherence to the group's norms, values, and goals? Cohesiveness Abilene Paradox Accommodation Conformity
d. conformity
You are asked by the operations manager to review the latest revision of the new product plan. The plan includes a workable design, an operational process, a facilities plan, and a layout. What has been overlooked? The plant capacity The product specifications The type of raw materials needed Consumers' wants and needs
d. consumer wants and needs
Which of the following characteristics relates to nonverbal communication? Anything acting as an information filter, such as knowledge, attitudes, and other factors, that interferes with the message being communicated effectively Words spoken through various channels to convey information and meaning Information and meaning transferred as recorded words, such as memos, reports, and email Information conveyed by actions and behaviors rather than by spoken or written words
d. information conveyed by actions and behaviors rather than by spoken or written words
All of the following are drawbacks of verbal or oral communication EXCEPT the sender leaves out and the receiver selects out information. noise is a prevalent problem in the process. words are often incorrectly chosen. it often results in greatly delayed feedback.
d. it often results in greatly delayed feedback
What is it called when firms organize the transformation process into departments that group related processes? Fixed-position layout Material-requirements planning Product layout Process layout
d. process layout
Which of the following is an example of a personal barrier to effective communication? Power and status Cultural diversity Goal and priority differences Semantics
d. semantics
Which of the following best describes communication? The process through which we receive, filter, organize, interpret, and attach meaning to information taken in from the environment The process of transforming information into understandable symbols The process of interpreting and attaching personal meaning to the message The process through which information and meaning are transferred from one person to another
d. the process through which information and meaning are transferred from one person to another
All of the following are advantages of virtual teams EXCEPT time constraints are less limiting because members have a greater ability to work during times that are more convenient for their schedule. they allow experts from across the world to collaborate on projects. the diversity of team members can increase the organization's understanding of different consumers. they always lead to greater efficiency and results.
d. they always lead to greater efficiency and results