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Management, 11e (Robbins/Coulter) Chapter 3 Managing in a Global Environment 1) Americans tend to suffer from parochialism. Page Ref: 71 Topic: What's Your Global Perspective? Objective:

1 Difficulty: Easy Classification: Conceptual 2) Managers with an ethnocentric attitude do not trust foreign employees with key decisions or technology. Page Ref: 71 Topic: What's Your Global Perspective? Objective: 1 Difficulty: Easy Classification: Conceptual 3) Managers with a polycentric attitude tend to view every foreign operation as difficult and hard to understand. Page Ref: 72 Topic: What's Your Global Perspective? Objective: 1 Difficulty: Easy Classification: Conceptual 4) The polycentric attitude is a world-oriented view focusing on using the best approaches and people from around the globe. Page Ref: 72 Topic: What's Your Global Perspective? Objective: 1 Difficulty: Easy Classification: Conceptual 5) 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. Page Ref: 72 Topic: Understanding the Global Environment Objective: 2 Difficulty: Easy Classification: Conceptual 6) Norway is a member of the European Union. Page Ref: 73 Topic: Understanding the Global Environment Objective: 2 Difficulty: Easy Classification: Conceptual
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7) The United States, Canada, and Mexico are parties to the North American Free Trade Association. Page Ref: 74 Topic: Understanding the Global Environment Objective: 2 Difficulty: Easy Classification: Conceptual 8) Mercosur is a trading group made up of ten South American countries. Page Ref: 75 Topic: Understanding the Global Environment Objective: 2 Difficulty: Easy Classification: Conceptual 9) A transnational organization reflects an ethnocentric attitude. Page Ref: 78 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual 10) Managers who want to get into a global market with minimal investment start with global sourcing. Page Ref: 78 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual 11) The process of exporting involves acquiring products made abroad and selling them domestically. Page Ref: 79 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual 12) Licensing and franchising 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. Page Ref: 79 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual 13) Licensing is primarily used by service organizations and franchising is primarily used by
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manufacturing organizations. Page Ref: 79 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual 14) Strategic alliance is a partnership between an organization and a foreign company partner or partners in which both share resources and knowledge in developing new products or building production facilities. Page Ref: 79 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual 15) Only when a country's political/legal environment is unstable or revolutionary is it of concern to managers. Page Ref: 80 Topic: Managing in a Global Environment Objective: 4 Difficulty: Easy Classification: Conceptual 16) Mexico is an example of a Collectivistic nation. Page Ref: 83 Topic: Managing in a Global Environment Objective: 4 Difficulty: Easy Classification: Conceptual 17) The United States is an example of a country with low power distance. Page Ref: 83 Topic: Managing in a Global Environment Objective: 4 Difficulty: Easy Classification: Conceptual 18) A high uncertainty avoidance society is threatened by ambiguity and experiences high levels of anxiety. Page Ref: 83 Topic: Managing in a Global Environment Objective: 4 Difficulty: Easy Classification: Conceptual 19) The GLOBE framework for assessing cultures is similar to Hofstede's framework, but measures fewer dimensions.
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Page Ref: 82-83 Topic: Managing in a Global Environment Objective: 4 Difficulty: Easy Classification: Conceptual 20) A global mind-set refers to attributes that allow a leader to be effective in cross-cultural environments. Page Ref: 85 Topic: Managing in a Global Environment Objective: 4 Difficulty: Easy Classification: Conceptual 21) Monolingualism is one sign that a nation suffers from ________. A) parochialism B) ethnocentrism C) polycentrism D) geocentrism Page Ref: 71 Objective: 1 Difficulty: Easy Classification: Conceptual 22) 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 Page Ref: 71 Topic: What's Your Global Perspective? Objective: 1 Difficulty: Easy Classification: Conceptual 23) 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. Page Ref: 71 Topic: What's Your Global Perspective? AACSB: Analytic Skills Objective: 1 Difficulty: Moderate Classification: Application
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24) 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 Page Ref: 71 Topic: What's Your Global Perspective? Objective: 1 Difficulty: Easy Classification: Conceptual 25) A manager who wishes to be successful in international business should avoid a(n) ________ attitude. A) multicultural B) multiracial C) ethnocentric D) geocentric Page Ref: 71 Topic: What's Your Global Perspective? Objective: 1 Difficulty: Moderate Classification: Conceptual 26) A(n) ________ attitude is characterized by parochialism. A) geocentric B) acculturated C) multilinguistic D) ethnocentric Page Ref: 71 Topic: What's Your Global Perspective? Objective: 1 Difficulty: Easy Classification: Conceptual 27) Managers with a(n) ________ attitude view every foreign operation as different and hard to understand. A) geocentric B) polycentric C) ethnocentric D) regiocentric Page Ref: 72 Topic: What's Your Global Perspective? Objective: 1 Difficulty: Easy Classification: Conceptual
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28) 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 Page Ref: 72 Topic: What's Your Global Perspective? Objective: 1 Difficulty: Easy Classification: Conceptual 29) In today's global environment, managers must have a(n) ________ attitude in order to be successful. A) ethnocentric B) parochial C) bigoted D) geocentric Page Ref: 72 Topic: What's Your Global Perspective? Objective: 1 Difficulty: Easy Classification: Conceptual 30) The ________ was formed by twelve original members 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 Page Ref: 72 Topic: Understanding the Global Environment Objective: 2 Difficulty: Easy Classification: Conceptual 31) The single European Union currency is called the ________. A) krone B) krona C) pound D) euro Page Ref: 73 Topic: Understanding the Global Environment Objective: 2 Difficulty: Easy Classification: Conceptual 32) Which of the following countries is a member of the European Union?
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A) Ireland B) Iceland C) Norway D) Switzerland Page Ref: 73 Topic: Understanding the Global Environment Objective: 2 Difficulty: Easy Classification: Conceptual 33) The North American Free Trade Agreement includes ________. A) Mexico, Canada, and the United States B) Canada, Mexico, and Costa Rica C) the United States, Canada, and Honduras D) Columbia, Mexico, and the United Sates Page Ref: 74 Topic: Understanding the Global Environment Objective: 2 Difficulty: Easy Classification: Conceptual 34) Which of the following is currently under negotiation by 34 countries in the Western Hemisphere? A) African Union B) Free Trade Area of the Americas C) Mercosur D) African Community Page Ref: 74 Topic: Understanding the Global Environment Objective: 2 Difficulty: Moderate Classification: Conceptual 35) 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 Page Ref: 75 Topic: Understanding the Global Environment Objective: 2 Difficulty: Easy Classification: Conceptual 36) Which of the following is a member of the Association of Southeast Asian Nations? A) China B) Japan C) South Korea
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D) Myanmar Page Ref: 75 Topic: Understanding the Global Environment Objective: 2 Difficulty: Easy Classification: Conceptual 37) How many members does The African Union have? A) 78 B) 53 C) 64 D) 49 Page Ref: 76 Topic: Understanding the Global Environment Objective: 2 Difficulty: Easy Classification: Conceptual 38) Nepal belongs to which of the following regional trade alliances? A) Asia-Pacific Economic Cooperation B) South Asian Association for Regional Cooperation C) Common Wealth of Independent States D) Association of Southeast Asian Nations Page Ref: 76 Topic: Understanding the Global Environment Objective: 2 Difficulty: Easy Classification: Conceptual 39) The World Trade Organization was formed in the year ________. A) 1995 B) 1967 C) 1971 D) 1983 Page Ref: 76 Objective: 2 Difficulty: Easy Classification: Conceptual 40) The World Trade Organization evolved from which of the following? A) Mercosur B) General Agreement on Tariffs and Trade C) Truman Doctrine D) Marshall Plan Page Ref: 76 Topic: Understanding the Global Environment Objective: 2 Difficulty: Easy
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Classification: Conceptual 41) The World Trade Organization has ________ member countries and ________ observer governments. A) 176; 50 B) 188; 60 C) 153; 30 D) 161; 40 Page Ref: 76 Objective: 2 Difficulty: Easy Classification: Conceptual 42) The International Monetary Fund is an organization of ________ countries that promotes international monetary cooperation and provides member countries with policy advice, temporary loans, and technical assistance to establish and maintain financial stability and to strengthen economies. A) 193 B) 172 C) 160 D) 185 Page Ref: 77 Objective: 2 Difficulty: Easy Classification: Conceptual 43) 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 Page Ref: 77 Objective: 2 Difficulty: Easy Classification: Conceptual 44) 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 Page Ref: 77 Objective: 2 Difficulty: Easy
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Classification: Conceptual 45) The ________ is a Paris-based international economic organization whose mission is to help its 30 member countries achieve sustainable economic growth and employment and raise the standard of living in member countries while maintaining financial stability in order to contribute to the development of the world economy. A) Organization for European Economic Cooperation B) Organizational Council of Europe C) Organization of European States D) Organization for Economic Cooperation and Development Page Ref: 77 Objective: 2 Difficulty: Easy Classification: Conceptual 46) 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. Page Ref: 78 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual 47) The ________ decentralizes its management and other decisions to the local country. A) multidomestic corporation B) global company C) transnational organization D) borderless organization Page Ref: 78 Objective: 3 Difficulty: Easy Classification: Conceptual 48) Multidomestic corporations reflect the ________. A) ethnocentric attitude B) polycentric attitude C) geocentric attitude D) xenophobic attitude Page Ref: 78 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual
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49) 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 Page Ref: 78 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual 50) 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 Page Ref: 78 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual 51) Which of the following is a feature of a multidomestic corporation? A) decisions are taken in the home country B) reflects an ethnocentric attitude C) eliminates artificial geographic borders D) has a decentralized management Page Ref: 78 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual 52) A ________ centralizes its management and other decisions in the home country. A) global company B) multidomestic corporation C) multicultural company D) multifaceted corporation Page Ref: 78 Objective: 3 Difficulty: Easy Classification: Conceptual 53) A global company reflects the ________. A) regiocentric attitude
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B) ethnocentric attitude C) geocentric attitude D) polycentric attitude Page Ref: 78 Objective: 3 Difficulty: Easy Classification: Conceptual 54) Which of the following is 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. Page Ref: 78 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual 55) An organization 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 Page Ref: 78 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual 56) Transnational organizations are also known as ________. A) ethnocentric organizations B) polycentric organizations C) borderless organizations D) multidomestic organizations Page Ref: 78 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual

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57) Which of the following types of global organizations reflects the geocentric attitude? A) multidomestic corporation B) transnational organization C) global company D) regional organization Page Ref: 78 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual 58) An organization decides to go international. Which of the following steps should it take to do so with a minimal investment? A) It should indulge in global sourcing. B) It should indulge in licensing. C) It should indulge in franchising. D) It should indulge in forming strategic alliances. Page Ref: 79 Objective: 3 Difficulty: Easy Classification: Conceptual 59) When an organization makes products domestically and sells them abroad, it indulges in ________. A) importing B) exporting C) licensing D) franchising Page Ref: 79 Objective: 3 Difficulty: Easy Classification: Conceptual 60) When an organization acquires products made abroad and sells them domestically, it indulges in ________. A) global sourcing B) licensing C) importing D) franchising Page Ref: 79 Objective: 3 Difficulty: Easy Classification: Conceptual 61) ________ is the practice wherein an organization gives another organization the right to use its brand name, technology, or product specifications in return for a fee usually based on sales. A) Global sourcing B) Exporting
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C) Subsidizing D) Licensing Page Ref: 79 Objective: 3 Difficulty: Easy Classification: Conceptual 62) 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 Page Ref: 79 Topic: Understanding the Global Environment AACSB: Analytic Skills Objective: 3 Difficulty: Moderate Classification: Application 63) A(n) ________ is a specific type of strategic alliance in which the partners form a separate, independent organization for some business purpose. A) equity strategic alliance B) joint venture C) global venture D) nonequity strategic alliance Page Ref: 80 Objective: 3 Difficulty: Easy Classification: Conceptual 64) Joint ventures are a type of ________. A) licensee B) franchisee C) foreign subsidiary D) strategic alliance Page Ref: 80 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual 65) 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) joint venture C) foreign subsidiary
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D) brokering agreement Page Ref: 80 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual 66) Which of the following is a method that companies might adopt in order to increase their direct foreign investment? A) exporting B) global sourcing C) strategic alliances D) licensees Page Ref: 79 Topic: Understanding the Global Environment Objective: 3 Difficulty: Easy Classification: Conceptual 67) Which of the following arrangements involves the greatest commitment of resources and poses the greatest amount of risk? A) exporting B) franchising C) foreign subsidiary D) global sourcing Page Ref: 80 Objective: 3 Difficulty: Easy Classification: Conceptual 68) A ________ economy is one in which resources are primarily owned and controlled by the private sector. A) free market B) planned C) command D) technocratic Page Ref: 81 Objective: 4 Difficulty: Easy Classification: Conceptual 69) Geert Hofstede's research found that countries varied on ________ dimensions of national culture. A) eleven B) five C) seven D) nine Page Ref: 82
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Objective: 4 Difficulty: Easy Classification: Conceptual 70) ________ is a cultural dimension in which people expect others in their group to look after them and protect them. A) Low uncertainty avoidance B) Achievment C) Collectivism D) High power distance Page Ref: 83 Topic: Managing in a Global Environment Objective: 4 Difficulty: Easy Classification: Conceptual 71) A country with ________ is comfortable with risks and is tolerant towards different behavior and opinions. A) low uncertainty avoidance B) short-term orientation C) low power distance D) performance orientation Page Ref: 83 Objective: 4 Difficulty: Easy Classification: Conceptual 72) A country that is assertive, believes in acquiring money and goods, and is competitive in nature is said to ________. A) be a collectivist B) have a high power distance C) be achievement oriented D) have a long-term orientation Page Ref: 83 Objective: 4 Difficulty: Easy Classification: Conceptual 73) A country where people look to the future and value thrift and persistence is said to ________. A) have an individualistic attitude B) have a long-term orientation C) be nurturing D) be achievement oriented Page Ref: 83 Objective: 4 Difficulty: Easy Classification: Conceptual
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74) Christopher, who is based in the U.S. has been offered a chance to work in Thailand. He finds that in this society people are expected to look after others in their family (or organization) and protect them when they are in trouble. This society tends to support ________. A) collectivism B) parochialism C) individualism D) monotheism Page Ref: 83 Topic: Managing in a Global Environment AACSB: Analytic Skills Objective: 4 Difficulty: Moderate Classification: Application 75) The Global Leadership and Organizational Behavior Effectiveness program identified ________ dimensions on which national cultures differ. A) five B) seven C) nine D) eleven Page Ref: 83 Topic: Managing in a Global Environment Objective: 4 Difficulty: Easy Classification: Conceptual 76) Which of the following two dimensions of the Global Leadership and Organizational Behavior Effectiveness program fit directly with Hofstede's dimensions? A) power distance and uncertainty avoidance B) power distance and gender differentiation C) uncertainty avoidance and in-group collectivism D) gender differentiation and in-group collectivism Page Ref: 83 Objective: 4 Difficulty: Easy Classification: Conceptual 77) The Global Leadership and Organizational Behavior Effectiveness program's ________ dimension is similar to Hofstede's achievement-nurturing dimension. A) uncertainty avoidance B) humane orientation C) assertiveness D) power distance Page Ref: 83 Objective: 4 Difficulty: Easy Classification: Conceptual
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78) Which of the following dimensions of the Global Leadership and Organizational Behavior Effectiveness program is similar to Hofstede's nurturing dimension? A) in-group collectivism B) humane orientation C) future orientation D) institutional collectivism Page Ref: 83 Objective: 4 Difficulty: Easy Classification: Conceptual 79) ________ is a measure of the degree to which people rely on social norms and procedures to alleviate the unpredictability of future events. A) Power distance B) Uncertainty avoidance C) Achievement D) Nurturing Page Ref: 83 Topic: Managing in a Global Environment Objective: 4 Difficulty: Easy Classification: Conceptual 80) ________ is the extent to which a society encourages people to be tough, confrontational, and competitive rather than modest and tender. A) Future orientation B) Institutional collectivism C) Assertiveness D) Humane orientation Page Ref: 83 Objective: 4 Difficulty: Easy Classification: Conceptual Cultural Training (Scenario) Jane wants to expand her career opportunities in the international operations of a company. She is 19 years old and currently attends a university. She has only lived in her home country and has never traveled to any foreign country. 81) While talking with her advisor at the university, Jane deduces that she has a(n) ________ attitude, as she has never traveled abroad and only relates well to people from her home country. A) regiocentric B) polycentric C) ethnocentric D) geocentric Answer: C Page Ref: 71 Topic: What's Your Global Perspective?
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AACSB: Analytic Skills Objective: 1 Difficulty: Moderate Classification: Conceptual 82) Jane 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. A) parochialistic B) polycentric C) ethnocentric D) geocentric Answer: D Page Ref: 72 Topic: What's Your Global Perspective? AACSB: Analytic Skills Objective: 1 Difficulty: Moderate Classification: Application A Foreign Alliance Talk (Scenario) As manager of the international department of your company, you have been asked by the local Chamber of Commerce to deliver a speech on foreign trade. The chamber president even goes so far as to say "and be sure to include the EU, NAFTA, and all that stuff because we're afraid that Ross Perot is right all the good jobs will leave the United States." As you pour over your notes, you try to choose the best information to present in the allotted half hour. 83) You plan to explain during your talk that the acronyms EU, NAFTA, and ASEAN refer to ________. A) regional trade alliances B) foreign airlines C) soccer teams in Europe D) new multinational corporations Page Ref: 72 Topic: Understanding the Global Environment AACSB: Analytic Skills Objective: 2 Difficulty: Easy Classification: Application 84) One of the hottest topics of your talk will be the North American Free Trade Agreement. One of the points that you will emphasize is that ________. A) between 1994 and 2007, merchandise trade between the United States, Canada, and Mexico has decreased from 6.6 percent to 4.4 percent B) a large number of people have started migrating from the United States to Mexico in search of jobs and prosperity C) as of 2010, it remains the largest trade bloc in the world in terms of combined gross domestic product of its members
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D) the United States, Canada, Mexico, Costa Rica and El Salvador are its members Page Ref: 74 Topic: Understanding the Global Environment AACSB: Analytic Skills Objective: 2 Difficulty: Moderate Classification: Application Business Expansion Plan (Scenario) As business expansion director, Shana's goal is to scout for potential locations and provide input on how her company should proceed with its planned expansion to Europe. There are many options, which include maintaining the company's head office in the United States and sending over company representatives when necessary or establishing a separate operations facilities abroad and hiring locals as managers. 85) 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 Page Ref: 78 Topic: Understanding the Global Environment AACSB: Analytic Skills Objective: 3 Difficulty: Moderate Classification: Application 86) If Shana's company decides to open a completely new operation in Germany, tailoring the company to local customs and marketing strategies and hiring local managers, it would be then considered a ________. A) transnational corporation B) global company C) borderless organization D) multidomestic corporation Page Ref: 78 Topic: Understanding the Global Environment AACSB: Analytic Skills Objective: 3 Difficulty: Moderate Classification: Application

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87) If Shana's company dropped its organizational structure based on country and reorganized into industry groups, it would best be considered a ________. A) borderless organization B) foreign subsidiary C) global company D) multidomestic corporation Page Ref: 78 Topic: Understanding the Global Environment AACSB: Analytic Skills Objective: 3 Difficulty: Moderate Classification: Application 88) One section of Shana's company's business plan involves setting up a foreign subsidiary. This arrangement involves ________. A) making products domestically and selling them abroad B) Shana's company giving the foreign subsidiary the right to use its brand name C) directly investing in a foreign country D) minimum global investment Page Ref: 80 Topic: Understanding the Global Environment AACSB: Analytic Skills Objective: 3 Difficulty: Moderate Classification: Application Software Entrepreneurial Venture (Scenario) Theodore and James have formed an entrepreneurial venture to develop software for banks and other financial institutions. Their company is growing, and in exploring future opportunities decides to initiate international operations. 89) 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 Page Ref: 78 Topic: Understanding the Global Environment AACSB: Analytic Skills Objective: 3 Difficulty: Moderate Classification: Application 90) 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.
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Their agreement is a(n) ________. A) export agreement B) licensing agreement C) franchise agreement D) import agreement Page Ref: 79 Topic: Understanding the Global Environment AACSB: Analytic Skills Objective: 3 Difficulty: Moderate Classification: Application Global Management Perspectives Global firms normally carry three global perspectives or attitudes for work approaches and practices. These perspectives include ethnocentric, polycentric, and geocentric attitudes. 91) Which of the following statements, if true, would support an ethnocentric attitude for a global firm? A) The firm is extremely flexible and responsive to the needs and demands of local markets in host countries. B) The firm's hierarchical structure ensures that data flows extensively from the subsidiaries to the home location reducing the potential for duplication. C) The firm uses a loose federation of associated business units, each of which is rather independent in their strategic decisions. D) The firm has been successful in striking the right balance between centralization and decentralization of resources. Page Ref: 71 AACSB: Reflective Thinking Skills Objective: 1 Difficulty: Difficult Classification: Critical Thinking 92) Which of the following statements, if true, would support a polycentric attitude for a global firm? A) The firm has been successful in striking the right balance between centralization and decentralization of resources. B) The firm utilizes multiple networks between the home office and the subsidiaries to facilitate both communication and data sharing. C) The firm is extremely flexible and responsive to the needs and demands of local markets in host countries. D) The firm's hierarchical structure ensures that data flows extensively from the subsidiaries to the home location reducing the potential for duplication. Page Ref: 72 AACSB: Reflective Thinking Skills Objective: 1 Difficulty: Difficult Classification: Critical Thinking
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