Management Ch. 4

. Companies that think _____ have a competitive edge. a. globally b. regionally c. nationally d. strategically e. "customers first"

A

. _____ refers to the degree to which people accept inequality in power among institutions, organizations, and people. a. Power distance b. Uncertainty avoidance c. Individualism d. Collectivism e. Masculinity

A

A _____ interaction requires more time because a relationship has to be developed, and trust and friendship must be established. a. high-context b. sales c. business d. low-context e. personal

A

A cultural attitude marked by the tendency to regard one's own culture as superior to others is called: a. ethnocentrism. b. polycentrism. c. geocentrism d. technocentrism. e. none of these.

A

A.R.C. is a large non-profit humanitarian aid organization that has been forced to pull out of several African markets in recent years due to civil wars and large-scale violence. This demonstrates which frequently cited problem for international companies? a. Political instability b. Communist governments c. Economic instability d. Political risk e. Financial risk

A

If you built a computer company in Africa and then found that your product was having difficulty being distributed to customers because of the road system, your problem would be related to: a. an inadequate infrastructure. b. an economy incapable of supporting growth. c. a poor resource market. d. a poor product market. e. none of these.

A

Most firms begin with which strategy to enter foreign markets? a. Exporting b. Greenfield venture c. Joint venture d. Acquisition e. Direct investment

A

Recent research by the GLOBE project has extended _____ research and offered new insights for managers. a. Hofstede's b. Walton's c. Weber's d. Fayol's e. Gilbreth's

A

Resource development, infrastructure, and exchange rates all describe which dimension in the international environment? a. Economic b. Legal c. Political d. Sociocultural e. Technological

A

Rooftop International, Inc. buys insurance against host government takeover when investing in foreign countries. This is an example of which sector of the international environment? a. Legal-political b. Sociocultural c. Technological d. Economic e. Infrastructure

A

The Digitec company has recently decided to design and manufacture a laptop that retails for under $50, in an effort to make information technology available to people in places like rural Africa and rural India. This is known as what type of strategy? a. Bottom of the pyramid strategy b. Skimming the barrel strategy c. Cream of the crop strategy d. Top of the peak strategy e. Base price strategy

A

The Nissan plant in Mississippi is an example of a _____. a. greenfield venture b. joint venture c. direct investment d. foreign affiliate e. direct acquisition

A

Which of the following countries possesses a high degree of assertiveness? a. Spain b. Sweden c. Japan d. Iceland e. Switzerland

A

Which of the following is a sociocultural factor in the international environment? a. Language b. Exchange rates c. Tariffs, taxes, and quotas d. Per capita income e. Infrastructure

A

Which of these is a low-context culture? a. German b. Chinese c. Korean d. Arab e. Japanese

A

A company's risk of loss of assets, earning power, or managerial control due to politically based events or action by host government is referred to as: a. MFN. b. political risk. c. tariffs. d. political instability. e. terrorism.

B

A country's physical facilities that support economic activities make up its _____. a. resource markets b. infrastructure c. physical markets d. product markets e. plants and equipment

B

A loosely knit social framework in which individuals are expected to take care of themselves is called: a. culture. b. individualism. c. ethnocentrism. d. masculinity. e. power distance.

B

A nation's _____ includes the shared knowledge, beliefs and values, as well as the common modes of behavior and ways of thinking, among members of a society. a. power distance b. culture c. masculinity d. individualism e. uncertainty avoidance

B

CRL, a European plastics manufacturer, is considering forming an alliance with a U.S. military goods manufacturer to develop a new type of polymer that can be used for international industrial and military applications. Such a partnership represents what type of direct investment? a. Franchising b. Joint Venture c. Wholly owned affiliate d. Greenfield venture e. Outsourcing

B

Exchange rates are included in which of the following international environments? a. The legal-political sector b. The economic environment c. The sociocultural environment d. The barter system environment e. The government sector

B

Go RVing, a U.S. company, built a subsidiary from scratch in England. This is an example of: a. franchising. b. greenfield venture. c. joint venture. d. exporting. e. licensing.

B

Heineken begins by exporting its product into new markets, and then ____ to a local brewer to establish its position in the market. a. countertrades b. licenses c. exports d. franchises e. markets

B

How many nations signed on for negotiation when GATT was created in 1947? a. 15 b. 23 c. 28 d. 40 e. 57

B

Jana has a high tolerance for the unstructured, the unclear, and the unpredictable. She can best be described as having: a. high uncertainty avoidance. b. low uncertainty avoidance. c. high degree of individualism. d. low degree of individualism. e. low level of power distance.

B

The legal-political environment, in international operations, includes which of the following? a. Shared knowledge, beliefs and values b. Political risks c. Social organizations d. Infrastructure e. None of these

B

The management of business operations conducted in more than one country is called: a. global management. b. international management. c. outsourcing management. d. planning management. e. domestic management.

B

When organization managers have a(n) _____ attitude, they value employees as an end in themselves. a. ethnocentric b. humanistic c. instrumental d. pluralistic e. performance

B

Which of the following has a goal to guide the nations of the world toward free trade and open markets? a. GATT b. WTO c. GLOBE d. EU e. NAFTA

B

Which of the following is NOT a legal-political factor in the international environment? a. Laws and regulations b. Language c. Tariffs, quotas, taxes d. Political risk e. Government takeovers

B

Which of the following is a form of franchising? a. Direct investing b. Licensing c. Exporting d. Countertrade e. Barter trade

B

Which of the following is defined as a culture in which communication is used to enhance personal relationships? a. Interpersonal culture b. High-context culture c. Power culture d. Low-context culture e. Family-oriented culture

B

Your grocery store in India is having trouble getting the local farmers to supply you with the proper produce. This is a problem with India's: a. product market. b. resource market. c. infrastructure. d. economy. e. power distance.

B

_____ places an emphasis on a worldwide perspective. a. Polycentric companies b. Geocentric companies c. Ethnocentric companies d. Regiocentric companies e. Domestic companies

B

_____ refers to a value characterized by people's intolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity. a. Power distance b. Uncertainty avoidance c. Certainty avoidance d. Conformity seekers e. None of these

B

A foreign terrorist kidnaps your firm's marketing VP while the VP is in the host country. This is a harsh example of: a. economic development. b. infrastructure. c. political risk. d. international law. e. social risk.

C

As a first step into international business, which two countries are most companies going to today? a. Russia and Japan b. Sweden and Germany c. China and India d. Brazil and Philippines e. Indonesia and Brazil

C

Carrie's Car Care receives more than 25% of its total sales revenues from operations outside of the United States. Carrie's would be considered a: a. foreign national. b. wealth company. c. multinational corporation. d. globalization corporation. e. None of these.

C

Collectivist values are represented in the social framework of which of these? a. The United States b. Australia c. Ecuador d. Great Britain e. All of these

C

Countries whose social values reflect low power distance: a. are highly undemocratic. b. accept inequality in power among institutions, organizations and people. c. expect equality in power. d. avoid uncertainty. e. none of these.

C

Cultural factors in foreign countries are _____ the political and economic factors. a. easier than b. similar to c. more perplexing than d. less important than e. none of these

C

For the past several years, foreign companies have invested more in business in _____ than in any other place in the world. a. Brazil b. India c. China d. United States e. Russia

C

In countries where women are often in positions of high status, the Globe Project would describe that culture as high in _____. a. assertiveness b. uncertainty avoidance c. gender differentiation d. societal collectivism e. performance orientation

C

In international operations, the economic environment represents all of the following factors except: a. infrastructure. b. resource and product markets. c. laws and regulations. d. inflation. e. exchange rates.

C

Sam is known by his colleagues as a great communicator, with an uncanny ability to shift speech patterns, expressions, and body language to be in tune with people from different cultures. Based on this example, Sam is strong in which component of cultural intelligence? a. Cognitive b. Emotional c. Physical d. Tangible e. Intangible

C

The European Union has expanded to a _____ nation alliance a. 14 b. 12 c. 28 d. 16 e. 21

C

The Maquiladora industry along the Texas-Mexico border on the Mexico side uses cheap labor for assembling products. This lowers the price for U.S. consumers and is an example of: a. licensing. b. joint venture. c. outsourcing. d. franchising. e. none of these.

C

The Write Pens, Inc. wants to reduce transferring costs by producing closer to the consumer in a foreign country. This will also help in reducing transportation and storage costs. Which strategy would be the best to use given the circumstances? a. Franchising b. Exporting c. Direct investing d. Barter agreement e. Licensing

C

The extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries is called _____. a. standardization b. industrialization c. globalization d. internationalism e. linguistic pluralism

C

Which of the following companies place an emphasis on their home countries? a. Polycentric b. Geocentric c. Ethnocentric d. Global e. Regiocentric

C

Which of the following countries possesses a high performance orientation? a. Israel b. Sweden c. Taiwan d. Russia e. Venezuela

C

Which of the following is an entry strategy in which the organization maintains its production facilities within its home country and transfers its products for sale in foreign markets? a. Franchising b. Licensing c. Exporting d. Greenfield venture e. Joint venture

C

Which organization originated and supports the idea of small businesses operating on a global level? a. GLOBE b. EU c. NAFTA d. ASEAN e. GATT

C

Your company is interested in producing and marketing a line of coffee that will penetrate the Chinese market. Your firm is willing to supply the equipment, products, product ingredients, trademark, and standardized operating system. What type of strategy are you going to use? a. Wholly owned foreign affiliate b. A greenfield venture agreement c. A franchise d. An export agreement e. Barter trade

C

____ generally are located in Asia, Africa and South America. a. MNCs b. EUs c. LDCs d. WTOs e. MFNs

C

_____ is a concept that proposes that corporations can alleviate poverty and other social ills by selling to the world's poorest people. a. Cream of the crop b. Skimming the barrel c. Bottom of the pyramid d. Top of the peak e. Base hierarchy

C

A country that places emphasis on fairness and values kindness would be described by the Globe Project as high in _____. a. assertiveness b. uncertainty avoidance c. gender differentiation d. humane orientation e. societal collectivism

D

A foreign subsidiary over which an organization has complete control is called a: a. joint venture. b. licensing agreement. c. franchise. d. wholly owned foreign affiliate. e. foreign venture.

D

All of the following are components of cultural intelligence, except _____. a. physical b. cognitive c. emotional d. analytical e. all of these

D

Countries that use several languages: a. are ethnocentric. b. are geocentric. c. are likely to have high uncertainty avoidance. d. have linguistic pluralism. e. are polycentric.

D

Exporting, licensing, and direct investing are called _____ strategies because they represent alternative ways to sell products and services in foreign markets. a. globalized b. expansion c. retrenchment d. market entry e. concentrated business

D

In 2010, which of the following countries formed a free trade area with the ten countries that make up the Association of Southeast Asian Nations (ASEAN)? a. Laos b. United States c. Mexico d. China e. Japan

D

In international operations, the economic environment includes: a. shared knowledge, beliefs and values. b. political risks. c. social organizations. d. infrastructure. e. tariffs, quotas, and taxes.

D

Language, values, religion, and education all describe which dimension in the international environment? a. Economic b. Legal c. Political d. Sociocultural e. Technological

D

Political risk is defined as an organization's risk of _____ due to politically based events or actions by host governments. a. loss of assets b. managerial control c. earning power d. all of these e. managerial control and earning power only

D

The _____ is a single European currency that replaced 12 national currencies and unify a huge marketplace. a. Mark b. Franc c. MFN d. Euro e. Pound

D

What is exporting? a. Countertrade b. The barter of products for products, often used in developing nations c. Items produced in the home country for sale in foreign markets d. All of these e. None of these

D

When the 2008 financial crisis began in the United States, it resulted in the collapse of the housing market and the failure of several large financial institutions. This crisis spread rapidly to the rest of the world. This example demonstrates which trend in the global economic environment? a. Economic development differs widely among countries of the world. b. Market demands differ for products and services throughout the world. c. Political instability is the primary result of economic failure. d. World markets are economically interconnected. e. Cultural factors have a greater impact on world markets than do economic factors.

D

Which of the following characteristics distinguish a multinational corporation? a. Top management is expected to take a global perspective. b. The corporation is controlled by a single management authority. c. It is managed as an integrated worldwide business system. d. All of these e. Top management is expected to take a global perspective and The corporation is controlled by a single management authority only.

D

Which of the following pairs of alternatives closely resemble each other in the amount of ownership, control and risk obtained in operating international businesses? a. Direct investment/franchising b. Wholly owned foreign affiliate/countertrade c. Exporting/licensing d. Franchising/licensing e. All of these

D

Which of the following refers to engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country? a. Franchising b. Licensing c. Market entry strategy d. Outsourcing e. Activity

D

Which of these reflects a cultural preference for cooperation, group decision making, and quality of life? a. Individualism b. Collectivism c. Masculinity d. Femininity e. Power distance

D

____ is the most widespread approach to international involvement in China and India. a. Importing b. Exporting c. Manufacturing d. Outsourcing e. Greenfield venture

D

_____ is normally used to classify countries as developed or developing. a. Exchange rates b. Interest rates c. Gross national product d. Per capita income e. Inflation rates

D

. ____ aspects of management do not change when doing business internationally. a. Planning b. Organizing c. Controlling d. Leading e. All of these

E

A form of exporting to less-developed countries is called: a. licensing. b. franchising. c. greenfield venture. d. joint venture. e. countertrade.

E

All of the following are considered emerging economies EXCEPT _____. a. Brazil b. Russia c. India d. China e. Canada

E

All of the following are cultural dimensions as defined by the GLOBE Project, except _____. a. assertiveness b. gender differentiation c. social collectivism d. humane orientation e. masculinity

E

In a(n) _____, people use communication primarily to exchange facts and information. a. power culture b. informational culture c. high-context culture d. mid-context culture e. low-context culture

E

Kim, a Japanese expatriate working in Denmark, tends to use communication primarily to build personal social relationships. She feels that relationships and trust are more important than business. Kim is surprised that her business associates in Denmark do not share the same views. Based on this information, Kim most likely grew up in what type of culture? a. Human-oriented b. Passive c. Assertive d. Low-context e. High-context

E

One of Hofstede's social values that was developed later is: a. power distance. b. uncertainty avoidance. c. masculinity. d. collectivism. e. long-term orientation.

E

Today's companies compete in a _____. a. growingly domestic b. low-context culture c. high-context culture d. Greenfield economy e. borderless world

E

Which of the following countries possesses a low degree of gender differentiation? a. China b. Brazil c. Italy d. South Korea e. Denmark

E

With its large English-speaking population, _____ has numerous companies offering services such as call-center operations, data-processing, computer programming, and technical support. a. Greenland b. Russia c. China d. Mexico e. India

E