MGMT 3000, GGC, Chp 1-4

46) A(n) ________ attitude is characterized by parochialism. A) geocentric B) acculturated C) multilinguistic D) ethnocentric

D) ethnocentric

55) The single European Union currency is called the ________. A) deutchmark B) krona C) pound D) euro

D) euro

6) Kelly, a production supervisor, is responsible for ten employees who assemble components into a finished product. Kelly is a ________. A) top manager B) nonmanagerial employee C) middle manager D) first-line manager

D) first-line manager

71) According to the text, which of the following is a typical definition of a multinational corporation? A) It is a company that maintains operations in multiple countries. B) It is a company that maintains franchises in multiple countries. C) It is a company that has multiple home bases and manufacturing plants. D) It is a company that pays corporate taxes in at least two countries.

A) It is a company that maintains operations in multiple countries.

34) Which one of the following represents the highest level of environmental uncertainty? A) Mario's restaurant competes against 325 others in the city, the city's ethnic mix is constantly changing. B) Maria's is still the only restaurant in a small town. She took it over from her mother and still uses the same equipment. C) Millie's customers expect to see new menu items regularly and want Millie to install Wi-Fi. D) Marty has to deal with the local council, the health department, the franchisor, the zoning commission-the list keeps growing. He is grateful there are no new competitors moving in.

A) Mario's restaurant competes against 325 others in the city, the city's ethnic mix is constantly changing.

57) The North American Free Trade Agreement includes ________. A) Mexico, Canada, and the United States B) Canada, Mexico, the United States, and Costa Rica C) the United States, Canada, Mexico, and Honduras D) Canada, Mexico, Panama, and the United Sates

A) Mexico, Canada, and the United States

83) Melanie would like to become a part of the global retail community. Which of the following options should Melanie consider as her first step? A) She should engage in global sourcing. B) She should engage in licensing. C) She should engage in franchising. D) She should develop strategic alliances with foreign companies.

A) She should engage in global sourcing.

89) Melanie had been buying raw materials locally but she is being underpriced by her competitors. She thinks there might be lower-cost materials elsewhere. What advice would you give Melanie? A) She should engage in global sourcing. B) She should engage in licensing. C) She should engage in franchising. D) She should develop strategic alliances with foreign companies.

A) She should engage in global sourcing.

109) Jack moved to China to manage his company's production facility there. Immediately he instituted the company practice of recognizing an employee of the month. The Chinese employees were horrified. Why might this be so? A) The employees are acting on their national cultural behavior patterns. B) Each employee took the competition seriously and wanted to win the recognition. C) None of them wanted to lose face by not being recognized. D) The company culture was stronger than their national culture.

A) The employees are acting on their national cultural behavior patterns.

28) Assume the global economy rebounds rapidly from the Great Recession. What constraint is this likely to have on decisions managers make? A) The number of qualified candidates available for hire will become smaller. B) Managers will be asked to eliminate positions to cut labor costs. C) The hourly compensation average will have to fall, managers will be asked to offer less to job candidates. D) Positions will be easier to fill as college graduates settle for lower paying jobs

A) The number of qualified candidates available for hire will become smaller.

106) 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) a difference in the currency exchange rate B) a change in the national leadership in Italy C) a cultural change in Italian society D) a reduction in trade barriers with Italy

A) a difference in the currency exchange rate

88) Which one of the following types of global organizations reflects the geocentric attitude? A) multidomestic corporation B) transnational organization C) global company D) regional organization

B) transnational organization

30) The universality of management means that ________. A) all managers in all organizations perform the four management functions B) all managers in all organizations perform the same quantity of managerial functions C) all managers in all organizations perform managerial functions in similar ways D) any manager can work in any organization and perform any management function

A) all managers in all organizations perform the four management functions

3) After identifying the decision criteria that are important or relevant to resolving a problem, the next step in the decision-making process is ________. A) allocating weights to the criteria B) analyzing the alternatives to solving the problem C) reducing the number of criteria through the process of elimination D) implementing the alternative

A) allocating weights to the criteria

86) If Marla's company changed its organizational structure from one based on country to one based on industry groups, it would best be considered a ________. A) borderless organization B) foreign subsidiary C) global company D) multidomestic corporation

A) borderless organization

32) Which of the following are the two dimensions of environmental uncertainty? A) degree of change and degree of complexity B) degree of change and degree of volume C) degree of complexity and degree of impact D) degree of impact and degree of timing

A) degree of change and degree of complexity

27) If mortgage interest rates increase, this would be an example of changing ________ conditions in a firm's external environment. A) economic B) political C) sociocultural D) financial

A) economic

12) If your team quickly painted the wall but discovered afterward it was the wrong wall, your team would be ________. A) efficient but ineffective B) efficient and effective C) effective but inefficient D) neither effective nor efficient

A) efficient but ineffective

63) The purpose of the World Trade Organization is to ________. A) facilitate trade among member nations through a system of rules B) recommend legislation to lessen the advantages of more advanced nations relative to developing countries C) manage foreign currency exchanges to alleviate the effects of inflation D) enforce quotas and tariffs imposed by member nations

A) facilitate trade among member nations through a system of rules

104) A ________ economy is one in which resources are primarily owned and controlled by the private sector. A) free market B) planned C) command D) democratic

A) free market

80) 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 ________. A) global company B) multidomestic corporation C) polycentric company D) transnational company

A) global company

65) Critics of the WTO claim that ________. A) global trade destroys jobs and the natural environment B) it favors third-world countries over developed countries C) shifting jobs to developing countries harms the economies of member nations D) has too little power to be effective

A) global trade destroys jobs and the natural environment

20) Rules of thumb that managers use to simplify decision making are known as ________. A) heuristics B) folksonomies C) algorithms D) sophisms

A) heuristics

24) Because Sterling is a shift manager, ________. A) his technical skills are of the utmost priority B) his conceptual skills are of the utmost priority C) his interpersonal skills are not important D) he need not have any empirical skills

A) his technical skills are of the utmost priority

2) After identifying a problem, the next step in the decision-making process is ________. A) identifying decision criteria B) allocating weights to decision criteria C) analyzing alternatives D) developing alternatives

A) identifying decision criteria

17) When the mayor officiates at the ribbon-cutting ceremony for the new bridge, he is performing one of Mintzberg's ________ roles. A) interpersonal B) informational C) decisional D) organizing

A) interpersonal

116) 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 ________. A) low in institutional collectivism B) high in institutional collectivism C) high in assertiveness D) low in in-group collectivism

A) low in institutional collectivism

73) The ________ decentralizes its management and other decisions to the local country. A) multidomestic corporation B) global company C) transnational organization D) borderless organization

A) multidomestic corporation

22) Which one of the following represents the two views of managerial impact on the success or failure of the organization? A) omnipotent and symbolic B) omnipotent and reflective C) symbolic and interactive D) reflective and interactive

A) omnipotent and symbolic

42) Only speaking one language is one sign that a nation suffers from ________. A) parochialism B) ethnocentrism C) polycentrism D) geocentrism

A) parochialism

12) Harriet's machine has stopped working again. She consulted the operator's manual troubleshooting guide to find a solution. Harriet used a ________. A) programmed decision B) non-programmed decision C) structured decision D) non-structured decision

A) programmed decision

50) A manager who wishes to be successful in international business should avoid a(n) ________ attitude. A) multicultural B) multiracial C) ethnocentric D) geocentric

C) ethnocentric

9) Which one of the following is an example of an efficient manufacturing technique? A) reducing the amount of scrap created in the process of making a product B) increasing the amount of time to manufacture products C) increasing product reject rates D) meeting customers' rigorous demand

A) reducing the amount of scrap created in the process of making a product

29) Which one of the following types of managerial positions is most likely to involve clerical duties? A) supervisor B) regional manager C) project leader D) president

A) supervisor

107) Coca-Moka, an American beverage company, sells its soft drinks in Thirstania. After earning large profits, Coca-Moka discovered it could not export those profits back to its American banks because of the ________ in Thirstania. A) tax policies B) exchange rate C) inflation rate D) export policies

A) tax policies

15) A policy ________. A) typically serves as a guideline for decision making by setting general parameters B) specifically states what should or should not be done C) is a series of sequential steps a manager uses to respond to a structured problem D) is used when dealing with unstructured problems and non-programmed decisions

A) typically serves as a guideline for decision making by setting general parameters

9) Farrell has a knack for selecting candidates who become very successful workers. When asked how he does it, he answered that he "listened to his gut." Farrell is really ________. A) using his intuition B) using bounded rationality C) using perfect rationality D) satisficing

A) using his intuition

56) Heinrich, a purchaser for an optics company in Germany, must place an order for materials for use in its production process. He is most likely to order from a company ________. A) within the European Union because there would be no barriers to trade B) in the United States because we have the same quality as any European company C) in Switzerland because the Swiss are known for their fine detail work D) in Asia because labor is cheaper there

A) within the European Union because there would be no barriers to trade

61) One of the more recent trade alliances, which came into existence in 2002, is the ________ made up of 54 nations. A) East African Community B) African Union C) South Asian Association for Regional Cooperation D) Trans-Pacific Partnership

B) African Union

40) If ABC Company wanted to create an innovative culture, which of the following actions should it take? A) Create detailed job descriptions and step-by-step procedures for every position. B) Allow employees time for the generation of ideas. C) Encourage employees to report slacking and other time wasting within their departments. D) Require employees to document their activities to account for all paid hours.

B) Allow employees time for the generation of ideas.

54) The ________ was formed by twelve member countries with the primary motivation of reasserting the region's economic position against the United States and Japan. A) African Union B) European Union C) Central America Free Trade Agreement D) Association of South-East Asian Nations

B) European Union

103) 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? A) More U.S. dollars would be needed to purchase the same quantity of Tomturkistan goods as before inflation. B) One U.S. dollar would purchase more Tomturkistan currency. C) Tomturkistan currency would purchase more U.S. goods than before. D) There would be no change; inflation is a domestic problem only.

B) One U.S. dollar would purchase more Tomturkistan currency.

72) Which one of the following would be considered a multinational corporation? A) Westernet buys electricity from Canada and provides it to customers in Washington State. B) Sherri's Shipping transports manufactured goods between the U.S. and Asia, maintaining offices in both countries. C) Willy's Websites maintains Internet sites for clients the world over from his offices in New Jersey. D) Betty's Bonnets makes women's hats in Jamaica and sells them to retailers in seven Caribbean countries

B) Sherri's Shipping transports manufactured goods between the U.S. and Asia, maintaining offices in both countries.

38) ________ is a process that helps new employees learn the organization's way of doing things. A) Inculcation B) Socialization C) Enculturation D) Transculturation

B) Socialization

11) ________ are straightforward, familiar, and easily defined. A) Programmed problems B) Structured problems C) Non-structured problems D) Nonprogrammed problems

B) Structured problems

20) ________ skills tend to be more important for first-line managers since they manage employees who produce the organization's product or service the organization's customers. A) Human B) Technical C) Conceptual D) Empirical

B) Technical

108) Hofstede's Five Dimensions of National Culture would predict which of the following? A) American employees working in the United States prefer to work in teams and to share team rewards. B) The French employees believe that rank should have its privileges. C) An Italian manager will readily and comfortably make decisions with few acts; he is willing to take great risks. D) A manager in Sweden will be driven to compete, to excel, and to amass wealth.

B) The French employees believe that rank should have its privileges.

8) ________ are responsible for making organization-wide decisions and establishing the plans and goals that affect the entire organization. A) Middle managers B) Top managers C) Production managers D) Research managers

B) Top managers

67) The ________ is a group of five closely associated institutions, all owned by its member countries, that provides vital financial and technical assistance to developing countries around the world. A) International Chamber of Commerce B) World Bank Group C) Organization for Economic Cooperation and Development D) World Economic Forum

B) World Bank Group

7) When managers make decisions that are rational but limited by their ability to process the information, they are following the concept of ________. A) cognitive decision making B) bounded rationality C) escalation of commitment D) intuitive decision making

B) bounded rationality

39) The term ________ refers to repetitive sequences of activities that express and reinforce the important values and goals of the organization. A) organizational culture B) corporate rituals C) corporate rites D) employee mentoring

B) corporate rituals

26) Internal constraints that influence managers' decisions and actions come from the ________. A) attitudes of customers B) culture of the organization C) prevailing political conditions D) fluctuations in the stock market

B) culture of the organization

98) 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 ________. A) form a strategic alliance with an existing company in another country B) directly invest in a production facility in another country C) export from a single production plant D) license producers in several countries

B) directly invest in a production facility in another country

81) A global company reflects the ________. A) pancentric attitude B) ethnocentric attitude C) geocentric attitude D) polycentric attitude

B) ethnocentric attitude

90) Nathan uses ethnic craftsmen to make high quality oak furniture. If he decides to offer his furniture for sale in other countries, he will be engaging in ________. A) importing B) exporting C) licensing D) franchising

B) exporting

82) Granval manages a production facility in Aughmenistan for a multinational company headquartered in Paris. His Paris bosses emphasize the importance of operating his plant efficiently so as to conserve scarce resources. It is likely Granval's employer is A) polycentric company B) global company C) transnational company D) multidomestic corporation

B) global company

84) If Shana's company decides to open another company in France but centralizes its management in the United States, it would be considered a ________. A) transnational corporation B) global company C) borderless organization D) multidomestic corporation

B) global company

68) The OECD was formed to ________. A) settle disputes arising from trade between developed and third-world countries B) help member countries achieve sustainable economic growth C) raise the standard of living in South American countries D) control interest rates and inflation in member countries

B) help member countries achieve sustainable economic growth

115) 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 ________. A) high in institutional collectivism B) high in in-group collectivism C) low in humane orientation D) high in performance orientation

B) high in in-group collectivism

10) An automobile manufacturer increased the total number of cars produced while keeping the production costs the same. The manufacturer ________. A) increased its equity B) increased its efficiency C) increased its effectiveness D) increased its effort

B) increased its efficiency

14) The ________ roles involve collecting, receiving, and disseminating information, according to Mintzberg's managerial roles. A) interpersonal B) informational C) technical D) decisional

B) informational

45) An ethnocentric attitude ________. A) prompts managers to have a global view and look for the best approaches and people regardless of origin B) is the belief that the home country has the best work approaches and practices C) is the view that employees in the host country know the best work approaches and practices D) gives a manager a much broader understanding of what it takes to manage in a global environment

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

95) In 1984 Toyota and General Motors formed a company called NUMMI to build cars carrying both the General Motors and Toyota brands. NUMMI is an example of a(n) ________. A) equity strategic alliance B) joint venture C) global venture D) nonequity strategic alliance

B) joint venture

5) First-line managers are typically those who ________. A) perform the same work as the people they manage but earn more money B) lead those involved with producing the organization's products or providing its service C) are at the top of the organizational chart D) are the first persons new hires meet

B) lead those involved with producing the organization's products or providing its service

117) 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 ________. A) high gender differentiation B) low gender differentiation C) high humane orientation D) low humane orientation

B) low gender differentiation

113) In South America, the Sawi tribe values deceit and treachery. Taking advantage of other tribes is cause for celebration. This culture is ________. A) high in assertiveness B) low in humane orientation C) high in future orientation D) low in gender differentiation

B) low in humane orientation

7) Ben, a production plant manager, reports to Dan, a regional manager. Ben and Dan are ________. A) top managers B) middle managers C) supervisors D) first-line managers

B) middle managers

78) As 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. A) transnational B) multidomestic C) borderless D) global

B) multidomestic

48) An ethnocentric attitude stems from ________. A) nationalism B) parochialism C) polycentrism D) geocentrism

B) parochialism

102) The Corrupt Foreign Practices Act forbids U.S. citizens to offer bribes to officials in other countries, but some of those officials depend on bribes to supplement their meager incomes. This particular dilemma is part of the ________ environment. A) demographic B) political/legal C) economic D) cultural

B) political/legal

51) Managers with a(n) ________ attitude view every foreign operation as different and hard to understand. A) geocentric B) polycentric C) ethnocentric D) regiocentric

B) polycentric

52) A(n) ________ attitude is the view that employees in the host country know the best practices for running their operations. A) ethnocentric B) polycentric C) geocentric D) regiocentric

B) polycentric

75) Multidomestic corporations reflect the ________. A) ethnocentric attitude B) polycentric attitude C) geocentric attitude D) xenophobic attitude

B) polycentric attitude

19) First-line managers tend to deal with problems that are ________ while upper-level managers handle the ________ problems. A) unstructured, structured B) routine and repetitive, unusual and different C) interpersonal, customer D) machine-related, interpersonal

B) routine and repetitive, unusual and difficult

97) A domestic firm and a foreign firm sharing the cost of developing new products or building production facilities in a foreign country constitute a ________. A) franchising agreement B) strategic alliance C) foreign subsidiary D) joint venture

B) strategic alliance

19) One of Calvin's employees is having problems with a production machine so Calvin helps him troubleshoot the problem. Calvin is using his ________ skills. A) negotiator B) technical C) interpersonal D) conceptual

B) technical

29) Which of the following groups includes individuals who were born between the years 1978-1994? A) the Gen X-ers B) the Gen Y-ers C) the Baby Boomers D) Pre-Millennials

B) the Gen Y-ers

64) The purpose of the OECD is ________. A) to settle disputes arising from trade between developed and third-world countries B) to help member countries achieve sustainable economic growth C) to raise the standard of living in South American countries D) to control interest rates and inflation in member countries

B) to help member countries achieve sustainable economic growth

4) The organizational chart shows titles such as front-line manager, plant manager, and vice president of operations. It is very likely this organization has a ________. A) traditional committee structure B) traditional pyramid structure C) modern matrix structure D) flexible structure

B) traditional pyramid structure

111) 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 ________. A) with high power distance B) with high uncertainty avoidance C) with high future orientation D) with high performance orientation

B) with high uncertainty avoidance

70) One case currently before the WTO involves ________. A) the hyperinflation experienced by some small African nations that limits their ability to trade with developed countries B) copyright infringement-the use of intellectual materials created in the United States by mass producers in Asia without payment of royalties to the creators C) China's export limits of rare earth metals that are necessary for the production of high-tech devices D) the sale of pirated software by terrorist organizations

C) China's export limits of rare earth metals that are necessary for the production of high-tech devices

44) Bill Sanderson, a manager in a manufacturing firm in New York has a tendency to view the world only through his U.S.-based perspective. What can be deduced about his attitude? A) He has an elitist attitude. B) He has a polycentric attitude. C) He has a parochialistic attitude. D) He has a geocentric attitude.

C) He has a parochialistic attitude.

16) ________ developed a categorization scheme for defining what managers do, consisting of ten different but highly interrelated roles. A) Henri Fayol B) Abraham Maslow C) Henry Mintzberg D) Peter Drucker

C) Henry Mintzberg

18) Connie has an idea for a new product she would like to produce and market. Mintzberg would consider the activities necessary to form and launch her company to be part of the ________ role. A) planning B) resource allocator C) negotiator D) entrepreneur

D) entrepreneur

23) Which one of the following is true concerning the three managerial skills? A) Technical skills tend to be most important for middle-level managers. B) Conceptual skills are most important for lower-level managers. C) Interpersonal skills remain equally important to all levels of management. D) Technical skills increase and conceptual skills decrease in importance as a manager climbs the organizational chart.

C) Interpersonal skills remain equally important to all levels of management.

77) Which one of the following represents the basic difference between multidomestic corporations and global companies? A) Multidomestic corporations typically do business with more countries than global companies. B) Multidomestic corporations are run by global companies but must be owned by a local, national company. C) Multidomestic corporations decentralize management to the local country, while global companies centralize management in the home country. D) Multidomestic corporations reflect an ethnocentric attitude, while global companies reflect a polycentric attitude.

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

36) ________ has been described as the shared values, principles, traditions, and ways of doing things that influence the way organization members act. A) Corporate hierarchy B) Business configuration C) Organization culture D) Industrial psychology

C) Organization culture

62) The forerunner of the Organization for Economic Cooperation and Development was the ________ that was formed in 1947 to administer American and Canadian aid under the Marshall Plan for the reconstruction of Europe after World War II. A) Organization of European States B) Organizational Council of Europe C) Organization for European Economic Cooperation D) Organization for European Investment

C) Organization for European Economic Cooperation

1) A problem can best be described as ________. A) a change from the past B) something bad that has happened C) a difference between current conditions and some desired state D) a loss of something of value

C) a difference between current conditions and some desired state

59) One advantage of NAFTA has been ________. A) less illegal immigration into the U.S. B) lower unemployment in the U.S. C) a higher standard of living in Mexico D) lower costs for consumers in the United States

C) a higher standard of living in Mexico

3) An individual who works with and through other people by coordinating their work activities in order to accomplish organizational goals is ________. A) an assembly line worker B) a laborer C) a manager D) a salesperson

C) a manager

16) "We expect to maintain the highest standards of quality in our workmanship." This is an example of ________. A) a procedure B) a rule C) a policy D) a practice

C) a policy

5) Which of the following is important in effectively implementing the chosen alternative in the decision-making process? A) evaluating each alternative by using the established criteria B) being creative while implementing the alternatives C) allowing those impacted by the outcome to participate in the process D) ignoring criticism concerning your chosen alternative

C) allowing those impacted by the outcome to participate in the process

17) Unstructured problems ________. A) refer to the usual problems faced by organizations B) are generally solved using procedures, rules, and policies C) are accompanied by ambiguous or incomplete information D) do not require the decision maker to go through an involved decision process

C) are accompanied by ambiguous or incomplete information

79) A corporation drops its organizational structure based on countries and reorganizes into industry groups. This is an example of the company becoming a(n) ________. A) ethnocentric company B) polycentric organization C) borderless organization D) global company

C) borderless organization

87) Transnational organizations are also known as ________. A) ethnocentric organizations B) polycentric organizations C) borderless organizations D) multidomestic organizations

C) borderless organizations

25) The CEO of MindWerks must understand the industry in which his business competes, the future of that industry, and the competition. This requires strong ________ skills. A) technical B) interpersonal C) conceptual D) controlling

C) conceptual

76) Multidomestic corporations ________. A) maintain operations in multiple countries, but do not allow managers in each country to make their own decisions B) reflect ethnocentric attitudes C) decentralize management and other decisions to the local country D) attempt to replicate their domestic successes by managing foreign operations from the home country

C) decentralize management and other decisions to the local country

100) Part of Jose's company's business plan involves setting up a foreign subsidiary. This arrangement involves ________. A) making products domestically and selling them abroad B) Jose's company giving the foreign subsidiary the right to use its brand name C) directly investing in a foreign country D) minimum global investment

C) directly investing in a foreign country

11) Effectiveness is associated with ________. A) reducing inventory B) decreasing production time C) doing the right things D) doing things right

C) doing the right things

31) If the components of an organization's environment change frequently, the organization is operating in a ________ environment. A) stable B) simple C) dynamic D) complex

C) dynamic

47) 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. A) regiocentric B) polycentric C) ethnocentric D) geocentric

C) ethnocentric

58) The World Trade Organization ________. A) advises developing countries on issues of trade barriers B) promotes long-term economic development and poverty reduction C) exists to help countries conduct trade through a system of rules D) facilitates trade among third-world countries and developed nations

C) exists to help countries conduct trade through a system of rules

85) 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) ________. A) export agreement B) licensing agreement C) franchise agreement D) import agreement

C) franchise agreement

93) Theodore and James decide to enter into an agreement with a firm in Europe allowing them to use their software, brand name, and business methods in return for a lump sum payment and a percentage of sales. The European firm is a service organization that plans to use the software to serve its customers. Their agreement is a(n) ________. A) export agreement B) licensing agreement C) franchise agreement D) import agreement

C) franchise agreement

118) "In this company, what you do matters a whole lot more than your last name." Bill's father, the company founder, expected Bill's supervisor to mentor the young man, to help him set goals, to train him and to develop his managerial skills with an emphasis on continuous improvement. Bill likely lives in a country with a ________. A) high in-group collectivism culture B) high institutional collectivism culture C) high performance orientation culture D) high assertiveness culture

C) high performance orientation culture

27) Because of the emphasis her company has placed on sustainability, Darlene, a first-line manager, must now consider ________. A) her company's stock trading price B) the impact of her department's waste on the environment C) how to retain employees even during an expanding economy D) her employees' non-work obligations when scheduling workers

C) how to retain employees even during an expanding economy

91) Natalya operates a retail store in Romania. She buys consumer electronics from vendors in China and Japan to sell in her store. Natalya is engaging in ________, A) global sourcing B) licensing C) importing D) franchising

C) importing

22) When Sam Walton visited his Walmart stores, he would often lead the employees in cheers and give inspiring speeches. Sam knew the importance of ________ skills. A) decisional B) technical C) interpersonal D) conceptual

C) interpersonal

10) Intuitive decision making ________. A) is the systematic use of the best available evidence to improve decision making practice B) generally results in poor decisions and hence managers should learn to ignore their gut feelings C) is the process of making decisions based on experience, feelings, and accumulated judgment D) complements rational decision making but not bounded rational decision making

C) is the process of making decisions based on experience, feelings, and accumulated judgment

1) Time should be considered a(n) ________ resource. A) abundant B) diminishing C) limited D) renewable

C) limited

23) The dominant view in management theory suggests that ________. A) an organization's success or failure is due to external forces outside managers' control B) managers' roles are increasingly becoming peripheral and staff manage their own areas of expertise C) managers are directly responsible for an organization's success or failure D) managers cannot significantly affect an organization's performance because they are constrained by the abilities of their employees

C) managers are directly responsible for an organization's success or failure

76) Which of the following is a multinational corporation that tailors marketing strategies to the host country's unique characteristics? A) borderless organization B) global company C) multidomestic corporation D) transnational organization

C) multidomestic corporation

101) Unlike the United States, the change from one regime to another in foreign countries can be less than peaceful. Differences in the ________ environment can lead to uncertainty and risk for global managers. A) economic B) cultural C) political/legal D) demographic

C) political/legal

53) Samanex Corporation maintains production facilities in 13 different countries on three continents. Each facility is managed by a native of the country where it is located. This practice is indicative of a(n) ________ attitude. A) ethnocentric B) geocentric C) polycentric D) multicentric

C) polycentric

13) One of the workers in Henry's department submitted his two weeks' notice so Henry needs to hire a replacement. The HR department issued a set of instructions Henry must follow to initiate the search for candidates. In other words, there is a ________ Henry must follow. A) policy B) practice C) procedure D) program

C) procedure

14) A(n) ________ is an explicit statement that tells a manager what can or cannot be done. A) agenda B) objective C) rule D) solution

C) rule

99) Melamark's advisor on global affairs is concerned that ________ carries too much risk. A) a strategic alliance B) franchising C) setting up a foreign subsidiary D) a joint venture

C) setting up a foreign subsidiary

33) If the components in an organization's environment exhibit minimal change, such an environment is said to be ________. A) volatile B) dynamic C) stable D) simple

C) stable

94) 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 ________. A) licensing company B) franchising company C) strategic alliance D) foreign subsidiary

C) strategic alliance

60) The Association of Southeast Asian Nations is a trading alliance of ________. A) eight Southeast Asian nations and Japan B) eight Southeast Asian nations C) ten Southeast Asian nations D) ten Southeast Asian nations and China

C) ten Southeast Asian nations

28) Management is needed in all types and sizes of organizations, at all organizational levels and in all organizational work areas, and in all organizations, no matter where they are located. This principle is known as the ________. A) impartiality of management B) neutrality of management C) universality of management D) reality of management

C) universality of management

43) Parochialism is a tendency to ________. A) think highly of the foreign country in which the organization is doing business B) focus on best approaches and people from around the globe C) view the world solely through one's own eyes and perspectives D) let employees in the host country figure out how best to do things

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

110) Alfredo believes that the CEO is no better than the janitor of the organization and neither should receive preferential treatment. Using the GLOBE model, what can we infer about Alfredo's culture? A) Alfredo's culture is high in power distance. B) Alfredo's culture is high in assertiveness. C) Alfredo's culture is low in low in humane orientation. D) Alfredo's culture is low in power distance.

D) Alfredo's culture is low in power distance.

37) Which one of the following most accurately reflects the difference between strong cultures and weak cultures? A) Strong cultures tend to encourage employees to try new approaches to changing conditions, while weak cultures do not. B) In strong cultures, organizational values are held by top management, while in weak cultures, values are diffused throughout the organization. C) Strong cultures have less influence on employee behavior than do weak cultures. D) Company values are more deeply held and widely shared in strong cultures than in weak cultures.

D) Company values are more deeply held and widely shared in strong cultures than in weak cultures.

21) ________ skills involve the ability to work well with other people, both individually and in a group. A) Technical B) Assessment C) Planning D) Interpersonal

D) Interpersonal

8) ________ results in a solution that is considered "good enough." A) Escalating B) Linear thinking C) Intuition D) Satisficing

D) Satisficing

25) Elmo Research & Development has been going through a rough patch lately. Turnover has been high and employee morale is at an all-time low. Though employees and competitors hold management responsible for the decline, the CEO does not let the managers go or change the management style. Which of the following could explain this attitude? A) The CEO holds the omnipotent view of management, which asserts that external factors have a significant effect on performance outcomes. B) Because the organization has a "take-charge" management style, the employees are responsible for organizational policies. C) The CEO is unresponsive to the criticisms from stakeholders. D) The CEO holds the view that managers have only a limited role in organization success or failure.

D) The CEO holds the view that managers have only a limited role in organization success or failure.

35) Which of the following environments is characterized by the highest level of environmental uncertainty? A) a stable and complex environment B) a dynamic and simple environment C) a stable and simple environment D) a dynamic and complex environment

D) a dynamic and complex environment

30) Faced with incomplete information about the future national economic conditions, many employers have eschewed the tradition of hiring full-time, permanent employees in favor of ________. A) hiring only high school graduates willing to work for lower wages B) a reduced work week of no more than 30 hours per week per employee C) off-shoring as many jobs as possible to reduce costs associated with government-mandated programs D) a flexible work arrangement that includes freelancers and temporary workers

D) a flexible work arrangement that includes freelancers and temporary workers

18) Nonprogrammed decisions ________. A) involve standardized solutions B) are usually made by lower-level managers C) are associated with clear and specific goals D) are unique and nonrecurring

D) are unique and nonrecurring

41) Companies that wish to establish a culture of sustainability can ________. A) expect new hires to observe the actions of others and act in a similar fashion B) casually mention occasionally that the company is concerned about sustainability C) vary the type and timing of its sustainability activities D) create rituals to demonstrate the company's efforts to support sustainability actions

D) create rituals to demonstrate the company's efforts to support sustainability actions

4) Carla is searching the Internet for sources of Himalayan salt to make bath salts. Carla is at the ________ step in the decision-making process. A) identify-the-problem B) identify-decision-criteria C) allocate-weights D) develop-alternatives

D) develop-alternatives

15) When Brandi is sharing with her team members the information she received at this morning's production meeting, she is performing the Mintzberg role of ________. A) liaison B) monitor C) entrepreneur D) disseminator

D) disseminator

49) Melanie joined 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. A) parochialistic B) polycentric C) ethnocentric D) geocentric

D) geocentric

54) In today's global environment, managers must have a(n) ________ attitude to be successful. A) ethnocentric B) parochial C) polycentric D) geocentric

D) geocentric

74) Which of the following is a feature of a multidomestic corporation? A) all decisions are made in the home country B) reflects an ethnocentric attitude C) eliminates artificial geographic borders D) has a decentralized management

D) has a decentralized management

6) It is assumed that a rational decision maker ________. A) faces unclear and ambiguous problems B) is unlimited by his or her ability to process information C) is unaware of all the possible alternatives and consequences D) is fully objective and logical

D) is fully objective and logical

112) 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 ________. A) is high in performance orientation B) is high in in-group collectivism C) is high in future orientation D) is high in assertiveness

D) is high in assertiveness

2) Technology makes it easier to stay connected but ________. A) there is always the risk of security breaches and the theft of information necessary for good time management practices B) it raises expectations on the part of those to whom we are connected C) technology fails, batteries lose power, and their effectiveness wanes D) it also presents constant distractions, making it difficult to stay on task

D) it also presents constant distractions, making it difficult to stay on task

92) Harley Davidson makes motorcycles but in its retail stores it also sells clothing, motorcycle accessories, jewelry, and many related products carrying the Harley trademarks made by other companies. Harley Davidson is engaging in ________. A) global sourcing B) exporting C) franchising D) licensing

D) licensing

114) "Let's forget about tomorrow for tomorrow never comes." "Live for today." These expressions would be typical of a culture that is ________. A) high in assertiveness B) low in humane orientation C) high in performance orientation D) low in future orientation

D) low in future orientation

105) 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 ________. A) free market economy B) foreign economy C) free enterprise economy D) planned economy

D) planned economy

13) Today, the basic management functions include ________. A) planning, organizing, commanding, and coordinating B) planning, organizing, coordinating, and controlling C) planning, organizing, directing, and controlling D) planning, organizing, leading, and controlling

D) planning, organizing, leading, and controlling

66) The International Monetary Fund is an organization that ________. A) rules on disputes over tariffs and subsidies B) helps countries conduct trade through a system of rules C) provides technical advice to developing countries D) promotes international monetary cooperation

D) promotes international monetary cooperation

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

D) strategic alliance

26) From a business perspective, 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 is known as ________. A) accountability B) universality C) equitability D) sustainability

D) sustainability

24) Wendell interviews many middle-level managers and discovers that these individuals believe that external factors constrain managers' influence over outcomes. The mid-level managers have a(n) ________ view of management. A) traditional B) omnipotent C) omniscient D) symbolic

D) symbolic

69) Cypress Exports would like to establish retail outlets in Mongrovia, a quasi-democratic African country with a growing middle class. But the national and local officials all want "gratuities" to process the applications for permits. Cypress Exports should appeal to ________. A) the World Trade Organization B) the International Monetary Fund C) the African Union D) the Organization for Economic Cooperation and Development

D) the Organization for Economic Cooperation and Development