MGT 487 Chapter 7
38) A ________ decentralizes management and other decisions to the local country. A) multidomestic corporation B) global company C) glocal company D) transnational organization E) borderless organization
A
16) ________ refers to the values and attitudes shared by individuals from a specific country that shape their behavior and their beliefs about what is important. A) National culture B) National values C) International value systems D) Global culture E) None of the above
A
18) The global approach to strategy is designed to help develop a (n) ________ advantage. A) low-cost B) differentiation C) integrated D) niche E) None of the above
A
20) A multicountry approach is based on developing a ________ advantage. A) differentiation B) low-cost C) integrated D) focused E) None of the answer choices is correct.
A
29) Because they entail minimal investment and risk, many small businesses often use ________ and ________ to do business globally. A) exporting, importing B) exporting, sourcing C) importing, sourcing D) exporting, licensing E) importing, licensing
A
37) One type of MNC is a A) multidomestic corporation. B) transformational company. C) border organization D) All of the above answer choices are correct E) None of the answer choices is correct.
A
39) A ________ doesn't attempt to replicate its domestic successes by managing foreign operations from its home country. A) multidomestic corporation B) global company C) glocal company D) transnational organization E) boundryless organization
A
44) A ________ centralizes its management and other decisions in the home country. A) global company B) glocal company C) multidomestic corporation D) transnational organization E) borderless organization
A
46) ________ focus on the need for global efficiency and cost savings. A) Global companies B) Multidomestic corporations C) Transnational organizations D) Focused organizations
A
47) When a company says, "We don't want people to think we're based anyplace," the company is organized as a A) transnational organization. B) global company. C) multidomestic corporation. D) focused corporation.
A
48) A transnational organization is also called a A) borderless organization. B) multidomestic corporation. C) global company. D) focused organization.
A
49) A ________ eliminates artificial geographic barriers. A) transnational organization B) multidomestic corporation C) global company D) focused organization
A
50) When IBM dropped its organizational structure based on country and reorganized into industry groups worldwide, it became a A) transnational organization. B) multidomestic corporation. C) global company. D) focused organization.
A
52) Ms. Mulcahy wants to understand the advantages of being international. Which of the following would you suggest? A) Interdependencies among multiple countries can be exploited. B) Potentially higher operational costs C) Increased global competition for jobs, markets, and talents D) Quality issues E) None of the answer choices is correct.
A
19) A ________ approach is one in which the organization's strategies vary according to the country in which it does business. A) global B) multicountry C) transnational D) differentiated E) integrated
B
21) In the ________ approach, products are tailored to fit consumer tastes and preferences. A) global. B) multicountry C) integrated D) focused E) reactor
B
22) ________ is purchasing materials or labor from around the world wherever it is cheapest. A) Transnational sourcing B) Global sourcing C) Value chain sourcing D) Niche-based sourcing E) Cooperative sourcing
B
25) ________ involves acquiring products made abroad and selling them domestically. A) Exporting B) Importing C) Licensing D) Franchising E) Focusing
B
26) ________ is primarily used by manufacturing companies. A) Franchising B) Licensing C) Focusing D) Procuring E) None of the answer choices is correct.
B
27) ________ is primarily used by service organizations. A) Licensing B) Franchising C) Sourcing D) Procuring E) Importing
B
30) Setting up a(n) ________ involves directly investing in a foreign country. A) licensee B) subsidiary C) franchisee D) international division E) None of the answer choices is correct.
B
32) In relative terms, which of the following involves significant global investment? A) Global sourcing B) Foreign subsidiary C) Licensing D) Franchising E) Exporting
B
41) When Frito-Lay (a division of PepsiCo) markets a Dorito chip in the British market that differs in both taste and texture from the U.S. and Canadian version, Frito-Lay is most likely operated as a A) global company. B) multidomestic corporation. C) glocal company. D) transnational organization. E) borderless organization.
B
42) Many consumer product companies that compete in the global market organize themselves as a ________ because they must adapt their products to meet the needs of local markets. A) global company B) multidomestic corporation C) transnational organization D) borderless organization E) None of the answer choices is correct.
B
53) One of the countries that Megan Mulcahy wants to enter is North Korea. You explain to her that North Korea is a ________ economy because economic decisions are planned by a central government. A) tourist B) planned C) free market D) focused E) differentiated
B
55) As a manufacturing company, CCP should probably use ________ in going international. A) franchising B) licensing C) focusing D) preempting E) transitioning
B
17) The ________ approach is one in which the strategies are basically the same in all countries in which the organization does business. A) transnational B) multidomestic C) global D) country-specific E) ethnocentric
C
23) Which of the following is NOT an international strategy alternative? A) Exporting B) Importing C) Deporting D) Licensing E) Franchising
C
24) ________ and ________ are similar approaches involving one organization giving another organization the right to use its brand name, technology, or product specifications in return for a lump sum payment or a fee usually based on sales. A) Importing, exporting B) Sourcing, procuring C) Licensing, franchising D) Globalizing, internationalizing E) None of the answer choices is correct.
C
31) In relative terms, which of the following involves minimal global investment? A) Exporting B) Importing C) Global sourcing D) Licensing E) Franchising
C
34) A subsidiary in a global organization is managed through A) local control. B) decentralized control. C) centralized control. D) national control. E) None of the answer choices is correct.
C
36) A(n)________ is any type of international company that maintains operations in multiple countries. A) international company B) conglomerate C) multinational corporation D) prospector. E) None of the answer choices is correct.
C
45) ________ treat the world market as an integrated whole. A) Multidomestic corporations B) Transnational organizations C) Global companies D) Glocal organizations E) None of the answer choices is correct.
C
51) Megan Mulcahy and CCP believe that because the company has been extremely successful in the U.S., its home country work approaches and practices are the best and that these should be used globally. What is CCP's global perspective? A) Geocentric attitude B) Polycentric attitude C) Ethnocentric attitude D) Regiocentric attitude E) None of the answer choices is correct.
C
28) Anheuser-Busch InBev uses a ________ strategy in foreign markets. A) franchising B) sourcing C) importing D) licensing E) None of the answer choices is correct.
D
33) A subsidiary in a multidomestic organization is managed through A) transnational control. B) globalized control. C) centralized control. D) local control. E) None of the answer choices is correct.
D
40) Nestle has operations in almost every country on the globe and its managers match the company's products to its consumers. Nestle is an example of a A) global company. B) glocal company. C) transnational organization. D) multidomestic corporation. E) None of the answer choices is correct.
D
43) When Walmart Stores "thinks locally to act globally," it is most likely approaching the global market as a A) global company. B) transnational organization. C) borderless organization. D) multidomestic corporation. E) None of the answer choices is correct.
D
54) Mulcahy believes that in the skincare industry, local responsiveness is important because significant country-to-country differences exist. She is suggesting a ________ approach. A) global B) ethnocentric C) regiocentric D) multicountry E) regional
D
35) Which of the following involves the greatest commitment of resources and poses the greatest amount of risk? A) Global sourcing B) Exporting and importing C) Licensing D) Franchising E) Foreign subsidiary
E
