MGMT Ch. 4

Which of the following is a multinational corporation that tailors marketing strategies to the host country's unique characteristics?

multidomestic corporation

A(n) ________ attitude is characterized by parochialism.

ethnocentric

While talking with her advisor at the university, Jane deduces that she has a(n) ________ attitude, as she has never traveled abroad and relates well only to people from her home country.

ethnocentric

A global company reflects the ________

ethnocentric attitude

Licensing is primarily used by service organizations and franchising is primarily used by manufacturing organizations.

FALSE

The GLOBE framework for assessing cultures is similar to Hofstede's framework, but measures fewer dimensions.

FALSE

According to the text, which of the following is a typical definition of a multinational corporation?

It is a company that maintains operations in multiple countries

Which of the following is the basic difference between multidomestic corporations and global companies?

Multidomestic corporations decentralize management to the local country, while global companies centralize management in the home country

If the rate of inflation in Tomturkistan increased suddenly, what effect would that have on the exchange rate of Tomturkistan currency for U.S. dollars?

One U.S. dollar would purchase more Tomturkistan currency

Melanie would like to become a part of the global retail community. Which of the following options should Melanie consider as her first step?

She should engage in global sourcing

A global mind-set refers to attributes that allow a leader to be effective in cross-cultural environments.

TRUE

A high uncertainty avoidance society is threatened by ambiguity and experiences high levels of anxiety

TRUE

A strategic alliance is a partnership between an organization and a foreign company partner in which both share resources and knowledge in developing new products or building production facilities.

TRUE

Licensing and franchising are similar approaches involving one organization giving another organization the right to use its brand name, technology, or product specifications in return for a lump sum payment or a fee usually based on sales

TRUE

Mexico is an example of a collectivistic nation.

TRUE

The United States is an example of a country with low power distance

TRUE

Hofstede's Five Dimensions of National Culture would predict which of the following?

The French employees believe that rank should have its privileges

For American company Leather Exporters, first quarter sales in Italy were higher compared to the preceding year but profits were down. What could account for this difference?

a difference in the currency exchange rate

Marco works for a multinational corporation as a plant manager but must receive approval from the home office for any management changes to production processes. Marco most likely works for ________.

a global company

In Malbadia, a central committee formed by the political powers decides what products and how many of each will be produced. This situation is typical of ________.

a planned economy

A corporation drops its organizational structure based on countries and reorganizes into industry groups. This is an example of the company becoming a(n) ________.

borderless organization

Transnational organizations are also known as ________.

borderless organizations

Melamark LLC has customers on four continents. It would like to increase its global presence as a supplier to its global customers. The most expensive option would be to ________.

directly invest in a production facility in another country

One section of Jose's company's business plan involves setting up a foreign subsidiary. This arrangement involves ________.

directly investing in a foreign country

Theodore and James decide to enter into an agreement with a firm in Europe allowing them to use the rights to their software, brand name, and software specifications in return for a lump sum payment. The firm is a service organization that plans to use the software to assist its customers. Their agreement is a(n) ________.

franchise agreement

A ________ economy is one in which resources are primarily owned and controlled by the private sector

free market

Melanie joins an international student association in order to better understand the views of students from other countries. She is trying to become more ________ in her attitude.

geocentric

If Shana's company decides to open another company in France but centralizes its management in the United States, it would be considered a ________.

global company

Caron admits she's a tough cookie. She thrives in an environment in which employees compete against each other for big rewards. It is likely that Caron's culture ________.

is high in assertiveness

An ethnocentric attitude ________.

is the belief that the home country has the best work approaches and practices

Harley Davidson makes motorcycles but in its retail stores it also sells clothing, motorcycle accessories, jewelry, and many related products made by other companies. Harley Davidson is engaging in ________.

licensing

The hero is always a loner, riding off into the sunset. Employers expect key employees to make critical decisions alone; rewards are given to individuals, not to teams. This describes a culture that is ________

low in institutional collectivism

The international operations of their firm continues to grow. Theodore and James have realized that decentralized management using foreign nationals to run operations in the host countries works best. Their firm has developed into a ________ organization.

multidomestic

The ________ decentralizes its management and other decisions to the local country.

multidomestic corporation

Only speaking one language is one sign that a nation suffers from ________.

parochialism

Unlike the United States, the change from one regime to another in foreign countries can be less than peaceful. Differences in the ________ can lead to uncertainty and risk for global managers.

political/legal environment

A(n) ________ attitude is the view that employees in the host country know the best practices for running their operations.

polycentric

Managers with a(n) ________ attitude view every foreign operation as different and hard to understand.

polycentric

Multidomestic corporations reflect the ________.

polycentric attitude

Melamark's advisor on global affairs is concerned that ________ carries too much risk

setting up a foreign subsidiary

A domestic firm and a foreign firm sharing the cost of developing new products or building production facilities in a foreign country constitute a ________.

strategic alliance

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 ________.

strategic alliance

Joint ventures are a type of ________.

strategic alliance

Which of the following types of global organizations reflects the geocentric attitude?

transnational organization

Parochialism is a tendency to ________.

view the world solely through one's own eyes and perspectives

Bettina likes to know the end from the beginning. She gathers as much information as possible before making a decision. Bettina likely lives in a culture ________.

with high uncertainty avoidance