chapter 3

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) a franchise B) a licensed plant. C) a foreign subsidiary D) a joint venture

B) a licensed plant.

planned expansion to other countries. There are many options, some of which include maintaining the business's head office in the United States. Other options send company representatives to foreign operations when necessary, or establishing separate operation facilities abroad and hiring locals as managers. 19) If Shana's company decides to open operations in France but maintain company management in the United States, it would be considered a ________. A) transnational corporation B) global corporation. C) multidomestic corporation D) joint venture

B) global corporation.

A global village can be best characterized as a business climate in which there are ________. A) rigid international boundaries B) no international boundaries C) rigid rules and standards D) no rules or standards

B) no international boundaries

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? A) assertiveness B) parochialism C) humane orientation D) collectivism

B) parochialism

Status in France within a corporation is largely ________. A) measured in the same way it is in the United States B) based on how much money a person makes C) based on such things as seniority and educational level D) based on an individual's personal accomplishments

D) based on an individual's personal accomplishments

Of the approaches to pursuing international markets, developing a ________ involves the greatest commitment and risk. A) franchise B) joint venture C) strategic alliance D) foreign subsidiary

D) foreign subsidiary

- Maintaining management in the home office in the United States gives Shana's company the profile of a global corporation. A global corporation is a multinational corporation that maintains its management in its home country. A multidomestic corporation, on the other hand, has a central home-country management but allows local management to run the company in its foreign locations. This differs from a borderless or transnational corporation that has no "home country" and is instead organized by industry and function. A joint venture is not a branching out of a home corporation but rather a joining of the home corporation with a foreign corporation. 20) If Shana's company decides to open a new operation in Germany that has local managers and is run locally but still exists under the umbrella of the home company, it would be considered a ________. A) national corporation B) borderless organization C) trade alliance D) multidomestic corporation.

D) multidomestic corporation.

Joint ventures are a type of ________. A) license B) franchise C) foreign subsidiary D) strategic alliance

D) strategic alliance

________ is a cultural dimension measured by Hofstede in which people identify strongly with a group within a society. A) Power distance B) Collectivism C) Individualism D) Uncertainty avoidanc

A) Power distance

Social responsiveness refers to the capacity of a firm to ________. A) address some pressing public need B) follow all government regulations C) differentiate between right and wrong D) be a role model for other organizations

A) address some pressing public need

A global corporation ________. A) centralizes management in a single home country. B) decentralizes management so that each local country's operation is managed locally C) decentralizes management so there is no single home location D) has two main management locations located on different sides of

A) centralizes management in a single home country.

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 ________. A) financial globalization. B) talent globalization C) creating a strategic alliance D) marketplace globalization

A) financial globalization.

A multinational corporation (MNC) ________. A) is any organization that maintains operations in more than one country. B) is defined as a company that has its home base in the United States and various operations overseas C) includes any company that exports goods overseas D) is defined as any company that has no home base

A) is any organization that maintains operations in more than one country

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? A) outsourcing B) importing C) exporting D) licensing

A) outsourcing

Which choice constitutes the typical first step for an organization that is "going global"? A) outsourcing B) franchising C) licensing D) strategic alliance

A) outsourcing

When an organization engages in ________, it uses managerial and technical employee skills and abilities from other countries. A) talent globalization. B) marketplace globalization C) financial globalization C) financial globalization D) resource globalization

A) talent globalization.

________ dictates that being socially responsible is the "right thing to do." A) A public image B) An ethical obligation C) A public expectation D) A dilution of purpose

B) An ethical obligation

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? A) Mary did not understand gender differences related to the Spanish culture. B) The supervisor was a very assertive person. C) Spain ranks high in power distance.. D) Spain ranks low in uncertainty avoidance.

C) Spain ranks high in power distance..

22) 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) a multidomestic corporation B) a foreign subsidiary C) a joint venture. D) a domestic subsidiary

C) a joint venture.

When a firm advertises that it only uses recycled paper products, it is ________. A) meeting its social obligation B) being cynical C) being socially responsive D) paying attention to the bottom line

C) being socially responsive

Which one of the following is usually found in the final stage of an organization's global evolution? A) exporting products to other countries B) outsourcing jobs to foreign countries C) establishing strategic alliances with partners. D) licensing products in foreign countries

C) establishing strategic alliances with partners.

When a U.S. ship yard purchases raw materials from locations around the world, for example steel from China, this is called ________. A) licensing B) a joint venture C) global sourcing. D) a global alliance

C) global sourcing.

Franchising is used widely by ________. A) universities B) accounting firms C) restaurant chains D) electric power companies

C) restaurant chains