Management Chapter 4

A global company reflects the ________.

ethnocentric attitude

The single European Union currency is called the ________.

euro

A transnational organization reflects an ethnocentric attitude.

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.

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

Americans tend to suffer from parochialism.

True

Managers who want to get into a global market with minimal investment start with global sourcing.

True

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

True

When the twelve original members formed the European Union in 1992, the primary motivation was to reassert the region's economic position against the United States and Japan.

True

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

Outsiders would call them clannish. Ianos and his family are very close. At work, he gives his all to the team. His neighbors support each other but exclude people they do not know. This describes a culture that is ________.

high in in-group collectivism

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

Helga has noticed an increasing number of female CEOs of large corporations and also that more fathers are staying home to raise children while the mothers assume positions of leadership in business. This is a culture with ________.

low gender differentiation

"Let's forget about tomorrow for tomorrow never comes." "Live for today." These expressions would be typical of a culture that is ________.

low in future orientation

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

multidomestic corporation

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

parochialism

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

setting up a foreign subsidiary

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

transnational organization