Managing in a Global Environment
Americans tend to suffer from parochialism.
True
Which of the following is a multinational corporation that tailors marketing strategies to the host country's unique characteristics? A) borderless organization B) global company C) multidomestic corporation D) transnational organization
...
A ________ centralizes its management and other decisions in the home country. A) global company B) multidomestic corporation C) multicultural company D) multifaceted corporation
A
A country with ________ is comfortable with risks and is tolerant towards different behavior and opinions. A) low uncertainty avoidance B) short-term orientation C) low power distance D) performance orientation
A
According to the text, which of the following is a typical definition of a multinational corporation? A) It is a company that maintains operations in multiple countries. B) It is a company that maintains franchises in multiple countries. C) It is a company that has multiple home bases and manufacturing plants. D) It is a company that pays corporate taxes in at least two countries.
A
An organization decides to go international. Which of the following steps should it take to do so with a minimal investment? A) It should indulge in global sourcing. B) It should indulge in licensing. C) It should indulge in franchising. D) It should indulge in forming strategic alliances.
A
Monolingualism is one sign that a nation suffers from ________. A) parochialism B) ethnocentrism C) polycentrism D) geocentrism
A
The ________ decentralizes its management and other decisions to the local country. A) multidomestic corporation B) global company C) transnational organization D) borderless organization
A
A domestic firm and a foreign firm sharing the cost of developing new products or building production facilities in a foreign country constitute a ________. A) franchising agreement B) joint venture C) foreign subsidiary D) brokering agreement
B
A global company reflects the ________. A) regiocentric attitude B) ethnocentric attitude C) geocentric attitude D) polycentric attitude
B
A(n) ________ attitude is the view that employees in the host country know the best practices for running their operations. A) ethnocentric B) polycentric C) geocentric D) regiocentric
B
A(n) ________ is a specific type of strategic alliance in which the partners form a separate, independent organization for some business purpose. A) equity strategic alliance B) joint venture C) global venture D) nonequity strategic alliance
B
Managers with a(n) ________ attitude view every foreign operation as different and hard to understand. A) geocentric B) polycentric C) ethnocentric D) regiocentric
B
Multidomestic corporations reflect the ________. A) ethnocentric attitude B) polycentric attitude C) geocentric attitude D) xenophobic attitude
B
Which of the following types of global organizations reflects the geocentric attitude? A) multidomestic corporation B) transnational organization C) global company D) regional organization
B
Adam has been hired by an organization that has a partnership with a foreign company. Both the partners share resources and knowledge while developing new products. Adam's organization has formed a ________. A) licensing company B) franchising company C) strategic alliance D) foreign subsidiary
C
Parochialism is a tendency to ________. A) think highly of the foreign country in which the organization is doing business B) focus on best approaches and people from around the globe C) view the world solely through one's own eyes and perspectives D) let employees in the host country figure out how best to do things
C
Transnational organizations are also known as ________. A) ethnocentric organizations B) polycentric organizations C) borderless organizations D) multidomestic organizations
C
Which of the following arrangements involves the greatest commitment of resources and poses the greatest amount of risk? A) exporting B) franchising C) foreign subsidiary D) global sourcing
C
Which of the following is a method that companies might adopt in order to increase their direct foreign investment? A) exporting B) global sourcing C) strategic alliances D) licensees
C
Which of the following is the basic difference between multidomestic corporations and global companies? A) Multidomestic corporations typically do business with more countries than global companies. B) Multidomestic corporations are run by global companies but must be owned by a local, national company. C) Multidomestic corporations decentralize management to the local country, while global companies centralize management in the home country. D) Multidomestic corporations reflect an ethnocentric attitude, while global companies reflect a polycentric attitude.
C
Which of the following is a feature of a multidomestic corporation? A) decisions are taken in the home country B) reflects an ethnocentric attitude C) eliminates artificial geographic borders D) has a decentralized management
D
Licensing is primarily used by service organizations and franchising is primarily used by manufacturing organizations.
False
A global mind-set refers to attributes that allow a leader to be effective in cross-cultural environments.
True
Managers who want to get into a global market with minimal investment start with global sourcing.
True
Managers with a polycentric attitude tend to view every foreign operation as difficult and hard to understand.
True
Strategic alliance is a partnership between an organization and a foreign company partner or partners in which both share resources and knowledge in developing new products or building production facilities.
True
The United States is an example of a country with low power distance.
True