Exam 4: Managing in a Global Environment

Borderless organizations ________.

Parochialism is best defined as ________.

By eliminating artificial geographical barriers,the transnational corporation reflects an ethnocentric attitude.

The European Free Trade Association (EFTA)is ________.

The primary reason for the creation of the EU was to allow Europe to assert its position against the industrial strengths of the U.S.and Japan.

________ is a measure of the degree to which people rely on social norms and procedures to alleviate the unpredictability of future events.

Managers with an ethnocentric attitude would not trust foreign employees with key decisions or technology.

Which of the following would you find in a country with a large power distance?

Understanding Hofstede's Cultural Dimensions (Scenario) Sasha has lived in Toronto her entire life and works at the head office of a large multinational corporation. She has recently become aware of several job openings for management in a number of the company's foreign subsidiaries. As she ponders the prospect of an overseas assignment, she reviews the research of Geert Hofstede to try to understand the cultural differences she would be faced with in each of the foreign subsidiaries. -One of the countries that Sasha is considering is Japan,where people look to the future and value thrift and persistence.Japan is considered high on which of the following dimensions?

What is the primary reason that the intensifying economic crisis in Europe threatens to impact the decisions of global managers in the U.S.and throughout the world?

According to the GLOBE rankings presented in our textbook,the U.S.,Taiwan,and New Zealand all rank high on which cultural dimension?

The primary reason it is difficult to gather information about a country's cultural differences is because ________.

Christopher,who is based in the head office in Toronto,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 ________.

International Entrepreneurs (Scenario) Jennifer and James have formed an entrepreneurial venture to develop software for banks and other financial institutions. Their company is growing, but in looking for opportunities in the future, they decide to explore international operations. -Jennifer and James decide to allow a company in Hong Kong to use the rights to their software,its brand name,and product specifications in return for a fee based on sales.This agreement best illustrates which of the following international expansion strategies?

Local laws do not present barriers to foreign investment as laws of the investor countries prevail in disputes.

Understanding Cultural Differences - GLOBE (Scenario) John has done well in his company. In only five years, he has risen to the position of divisional manager. However, he knows that in order to rise to the level of senior management, he needs to spend some time managing abroad in his company's foreign subsidiaries. Although he has travelled to foreign countries on business and vacations, he has never lived abroad, and he wonders what cultural differences he would find. He is considering applying for a new foreign-based position, but he first wants to learn about some of the basic differences between managing in Canada and managing in a foreign country. John researched the topic of international management and found many helpful facts about various countries and their people. But perhaps the most interesting model he found was the GLOBE framework for assessing cultural differences. Using data from thousands of managers in 62 countries, the GLOBE research team identified several dimensions on which national cultures differ. As John reviewed the GLOBE rankings, he began to appreciate why managers on foreign assignments need to be incredibly sensitive to cultural differences! -John is a high achiever who has a "can-do" attitude and believes in taking initiative.As a manager,he focuses extensively on performance improvement and he rewards excellence.If John wants to transfer to a country with a similar performance orientation,he should choose ________.

First Business Trip to Asia (Scenario) Jeff Elliott is on a flight across the Pacific and is excited about his first business trip to Asia. Born and raised in Alberta, Jeff is a manager for a rapidly growing Calgary-based company. His current mission is to scout out potential locations in Asia and develop an international expansion strategy for his company. There are many options, including maintaining the business's head office in Canada and sending over company representatives when necessary or developing a separate company in Asia and hiring locals to manage the business. Jeff's trip will take him to Japan, South Korea, Hong Kong, Taiwan, and China. He is looking forward to learning more about the business practices and customs of each country and is not too worried about the fact that he only speaks English. Jeff has heard that English is considered the main international business language, and he anticipates that most Asians will be able to speak it. -If Jeff's company decides to open a completely new operation in China,tailoring the company to local customs and marketing strategies and hiring local managers,they would be considered a ________.

Key advantages of an ethnocentric attitude include more support from host governments and committed local managers with high morale.

Both IMF and the World Bank provide temporary loans to maintain financial stability in member countries.

Managers with an ethnocentric attitude concentrate on their ________.