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