Exam 4: Managing in a Global Environment

Mercosur is a trading group made up of ten South American countries.

Melanie had been buying raw materials locally but she is being underpriced by her competitors. She thinks there might be lower-cost materials elsewhere. What advice would you give Melanie?

The ________ decentralizes its management and other decisions to the local country.

The Association of Southeast Asian Nations is a trading alliance of ________.

A strategic alliance is a partnership between an organization and a foreign company partner in which both share resources and knowledge in developing new products or building production facilities.

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?

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) ________.

Only when a country's political/legal environment is unstable or revolutionary is it of concern to managers.

Parochialism is a tendency to ________.

The polycentric attitude is a world-oriented view focusing on using the best approaches and people from around the globe.

If the rate of inflation in Tomturkistan increased suddenly, what effect would that have on the exchange rate of Tomturkistan currency for U.S. dollars?

In South America, the Sawi tribe values deceit and treachery. Taking advantage of other tribes is cause for celebration. This culture is ________.

"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 ________.

Discuss the dimensions of the Global Leadership and Organizational Behavior Effectiveness (GLOBE) framework. Describe how each dimension compares to Hofstede's five dimensions of national culture.

The World Trade Organization was formed in the year ________.

Melamark's advisor on global affairs is concerned that ________ carries too much risk.

The United States belongs to a trade alliance known as CAFTA, which stands for ________.

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.

The OECD was formed to ________.

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.