Chapter 3
Which of the following characteristics distinguishes a multinational corporation?
All of these choices are correct
A report from research firm eMarketer indicated that which of the following countries would soon overtake the United States as the world's largest retail market?
China
As a first step into international business, which two countries are most companies locating in today?
China and India
German, Swiss, and North American cultures are among the high-context cultures.
False
Licensing means engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies.
False
Market risk is defined as the risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments.
False
Which of the following refers to engaging in the international division of labor to obtain the cheapest sources of labor and supplies?
Outsourcing
Business has become a unified, global field, and events and ideas that influence organizations in one country are likely to influence organizations in other countries as well.
True
Cultural intelligence refers to a person's ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.
True
Ethnocentrism refers to a natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values.
True
Geocentric companies are truly world-oriented and favor no specific country.
True
MNC top managers regard the entire world as one market for strategic decisions; resource acquisition; and location of production, advertising, and market efficiency
True
Seeking cheaper sources of materials or labor offshore is called offshoring.
True
The basic management functions of planning, organizing, leading, and controlling are the same whether a company operates domestically or internationally.
True
The goal of the European Union is to create a powerful single market system for Europe's millions of consumers
True
Which of the following has a goal to guide the nations of the world toward free trade and open markets
WTO
MNCs that are truly world-oriented and favor no specific country are considered _____.
geocentric
Companies that have a competitive edge tend to think ___
globally
A country that places emphasis on fairness and values kindness would be described by the GLOBE Project as high in _____.
humane orientation
Jada has a high tolerance for the unstructured, the unclear, and the unpredictable. She can best be described as having ___
low uncertainty avoidance
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 _____.
outsourcing
Collectivist values are represented in the social framework of which of the following countries?
Mexico
Which trade agreement went into effect in 1994 and merged the United States, Canada, and Mexico into a single market?
NAFTA
Due to politically based events or actions by host governments, political risk is defined as an organization's risk of loss of _____.
all of these choices
The concept that proposes that corporations can alleviate poverty and other social ills by selling to the world's poorest people is known as _____.
bottom of the pyramid