Quiz 4 Information
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?
Alfredo's culture is low in power distance.
In today's global environment, managers must have a(n) ________ attitude to be successful.
Geocentric
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
A global company reflects the ________.
ethnocentric attitude
Melanie would like to become a part of the global retail community. Which of the following options should Melanie consider as her first step?
She should engage in global sourcing
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?
The employees are acting on their national cultural influences.
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 difference in the currency exchange rate
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 planned economy
A corporation drops its organizational structure based on countries and reorganizes into industry groups. This is an example of the company becoming a(n) ________.
borderless organization
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 ________.
borderless organization
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 ________.
exporting
Multidomestic corporations ________.
decentralize management and other decisions to the local country
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 ________.
directly invest in a production facility in another country
A manager who wishes to be successful in international business should avoid a(n) ________ attitude.
ethnocentric
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.
ethnocentric
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) ________.
franchise agreement
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
global company
Which of the following is a feature of a multidomestic corporation?
has a decentralized management
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
"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 ________.
high performance orientation culture
The advantages of operating globally include ________.
higher profits
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 ________,
importing
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 ________.
licensing
"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
In South America, the Sawi tribe values deceit and treachery. Taking advantage of other tribes is cause for celebration. This culture is ________.
low in humane orientation
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 ________.
low in institutional collectivism
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.
multidomestic
The ________ decentralizes its management and other decisions to the local country.
multidomestic corporation
Only speaking one language is one sign that a nation suffers from ________.
parochialism
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.
political/legal
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.
political/legal environment
A(n) ________ attitude is the view that employees in the host country know the best practices for running their operations.
polycentric
Managers with a(n) ________ attitude view every foreign operation as different and hard to understand.
polycentric
Multidomestic corporations reflect the ________.
polycentric attitude
Melamark's advisor on global affairs is concerned that ________ carries too much risk.
setting up a foreign subsidiary
Parochialism is a tendency to ________.
view the world solely through one's own eyes and perspectives
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 ________.
with high uncertainty avoidance