Deck 5: Managing in the Global Arena

Question 1

A license agreement is a right granted by one company to another to use its brand name and technology in the manufacture or sale of goods and services.

Answer 1

True

Question 2

In order to be classified as a domestic corporation,a corporation must acquire all resources and sell all products within one country.

Answer 2

False

Question 3

A polycentric attitude reflects the belief that multinational corporations should regard home-country management practices as superior to foreign-country management practices.

Answer 3

False

Question 4

A multinational corporation is a company that is primarily based in one country but has continuing transactions in other countries.

Question 5

Host-country nationals do not need to be relocated or undergo training in the culture,language,or tax laws of the country where the organization is doing business.

Question 6

A company that merely exports products to a foreign country cannot be considered a multinational corporation.

Question 7

Transnational organizations usually take one particular continent as their business arena.

Question 8

International management is the performance of management activities across national borders.

Question 9

Third-country nationals are organization members who are citizens of the country in which the facility of a foreign-born organization is located.

Question 10

Expatriates are organization members who live and work in a country in which they are not citizens.

Question 11

Domestic organizations essentially operate within a single country.

Question 12

Managers with an ethnocentric attitude are prone to stereotype foreign management practices as faulty and unreasonable.

Question 13

The host company is the company investing in international operations.

Question 14

One form of international management is fighting competition in foreign markets.

Question 15

Repatriation is the process of ensuring the adjustment of a worker to a foreign country.

Question 16

Establishing a formal partnership with a foreign company is a form of international management.

Question 17

The European Union is an example of an international market agreement.

Question 18

A company that exports products to a foreign country and establishes sales organizations abroad is considered to be a domestic company.

Question 19

An international organization has a lower level of international involvement than a multinational organization.

Question 20

Transnational organizations have the least international involvement of all types of organizations involved in the international arena.

Question 21

Gary is a British citizen working for an American company situated in London.He is a(n)________.

A)host-country national
B)third-country national
C)repatriate
D)expatriate
E)immigrant

Question 22

Organization members who are citizens of one country and work in another country for an organization headquartered in still another country are known as ________.

A)expatriates
B)host-country nationals
C)third-country nationals
D)repatriates
E)naturalized citizens

Question 23

Adam & Sons is a fifty-year-old watch company based in Alabama.The major bulk of its sales has always taken place within the United States.Adam & Sons recently became the sole U.S distributors for Japanese watch manufacturer TLC.Adam & Sons would therefore be classified as a(n)________.

A)international organization
B)multinational organization
C)transnational organization
D)global organization
E)domestic organization

Question 24

Hugh is an American citizen currently living in Denmark.He works for a company that has its headquarters in France.He is a ________.

A)third-country national
B)host-country national
C)home-country national
D)dual citizen
E)repatriate

Question 25

Which of the following categories of organizations generally has the lowest level of international involvement?

A)global organizations
B)domestic organizations
C)international organizations
D)multinational organizations
E)transnational organizations

Question 26

Which of the following describes a company that is primarily based within one country but has continuing and meaningful transactions in other countries?

A)domestic organization
B)international organization
C)multinational organization
D)transnational organization
E)global organization

Question 27

According to Neil H.Jacoby,which of the following is the first stage of multinationalization?

A)establishing sales organizations abroad
B)licensing the use of the organization's patents and know-how to foreign firms that make and sell the organization's product
C)establishing foreign manufacturing facilities
D)multinationalizing the organization's management from top to bottom
E)exporting the organization's product to foreign countries

Question 28

________ organizations essentially operate within a single country.

A)Multinational
B)Transnational
C)Global
D)Domestic
E)International

Question 29

SNL manufactures and sells customized shoes for people with special needs.The organization caters mostly to customers within the United States,though it occasionally sends products to overseas customers.The organization is very eco-friendly,and takes pride in sourcing all its raw materials locally.According to the information,SNL is a(n)________.

A)transnational organization
B)global organization
C)multinational organization
D)domestic organization
E)international organization

Question 30

Citizens of a country who work in a foreign-based organization located in their own country are known as ________.

A)expatriates
B)host-country nationals
C)third-country nationals
D)repatriates
E)immigrants

Question 31

A company investing in international operations is known as the ________.

A)quasi company
B)parent company
C)subsidiary company
D)holding company
E)host company

Question 32

BLT is a sandwich chain based in Boston.It gained popularity due to word-of-mouth publicity and it is now opening branches in New Jersey and Connecticut as well.The company sources all its raw materials locally and makes it a point to use sustainable practices.Which of the following actions would make BLT a multinational company?

A)if it begins stocking organic foods produced by local farms
B)if it distributes artisanal chocolate produced by a South African firm
C)if it licenses a fast-food chain in England to use its brand name
D)if it diversifies its product lineup to include different types of foods
E)if it begins selling cheeses imported from France

Question 33

An organization that has significant operations in more than one country,disregards national boundaries,and is guided by a common strategy from a corporation center is a(n)________.

A)global organization
B)domestic organization
C)international corporation
D)multinational corporation
E)transnational organization

Question 34

In ascending order,what are the different types of organizations involved in the international arena?

A)domestic,international,multinational,transnational
B)international,transnational,domestic,multinational
C)multinational,domestic,transnational,global
D)transnational,international,multinational,domestic
E)domestic,multinational,transnational,international

Question 35

Joe is a citizen of Sri Lanka who lives and works for a company in Brazil.He is considered to be a(n)________.

A)dual citizen
B)expatriate
C)repatriate
D)host-country national
E)home-country national

Question 36

Which of the following is a characteristic of domestic management?

A)widely disparate economic conditions
B)national markets varying greatly in population and area
C)different national sovereignties
D)markets at different stages of the industrial revolution
E)people living in similar value systems

Question 37

________ are members of an organization who live and work in a country where they do not have citizenship.

A)Expatriates
B)Host-country nationals
C)Naturalized citizens
D)Repatriates
E)Dual citizens

Question 38

Which of the following types of organizations has the highest level of international involvement?

A)regional organizations
B)national organizations
C)transnational organizations
D)ethnocentric organizations
E)domestic organizations

Question 39

What is the most advanced stage in multinationalization of a company?

A)licensing its brand names to foreign firms
B)establishing foreign manufacturing facilities
C)establishing sales organizations abroad
D)exporting the organization's products to foreign countries
E)multinationalizing ownership of the corporate stock

Question 40

A country in which an investment is made by a foreign company is termed as a(n)________.

A)host country
B)parent country
C)home country
D)expatriate country
E)native country

Question 41

When a U.S.-based computer manufacturer sells a shipment of 40 computers to a retailer in Germany,the computer manufacturer is engaged in the process of ________.

A)importing
B)exporting
C)developing a license agreement
D)direct investing
E)repatriating

Question 42

An international market agreement is ________.

A)a joint venture between two companies who want to enter markets in the other country
B)an arrangement among a cluster of countries that facilitates a high level of trade among these countries
C)an international import deal between two countries
D)an agreement between an importer from one country and an exporter from another
E)an agreement between a multinational company and its franchisees in a number of countries

Question 43

If a company in the United States allows a company in England to use its brand name for a fee,the company is said to have entered into a(n)________.

A)license agreement
B)direct investing agreement
C)venture agreement
D)export agreement
E)import agreement

Question 44

In which of the following areas does international planning emphasize reaching organizational objectives through the purchase of the operating assets of another company in a foreign country?

A)direct investing
B)joint venture
C)importing
D)exporting
E)license agreements

Question 45

The manager of a multinational corporation in the United States thinks that following U.S.management practices is best for its operations in New Zealand because U.S.management practices are better than the management practices prevalent in New Zealand.This manager is said to have a(n)________.

A)ethnocentric attitude
B)polycentric attitude
C)geocentric attitude
D)xenocentric attitude
E)gynocentric attitude

Question 46

International plans that include ________ emphasize the attainment of organizational objectives through partnerships with foreign companies.

A)joint ventures
B)imports
C)exports
D)license agreements
E)direct investing

Question 47

________ is an international market agreement dedicated to facilitating trade among member nations.

A)The Asian Union
B)The American Union
C)The European Union
D)The Global Union
E)The Pan-Asian Union

Question 48

________ are least expensive to employ for organizations that operate globally.

A)Host-country nationals
B)Expatriates
C)Third-country nationals
D)Repatriates
E)Migrant workers

Question 49

Which of the following is true for employees of multinational organizations?

A)A third-country national works for a foreign organization in its home country.
B)A host-country national will face problems adjusting to the culture of the country in which he works.
C)Expatriates and third-country nationals have to be relocated and undergo training.
D)A host-country national is an organization member who lives and works in a country where he or she does not have citizenship.
E)Host-country nationals are usually the most expensive to employ.

Question 50

The ________ function of management involves determining how an organization will achieve its objectives.

A)planning
B)organizing
C)influencing
D)controlling
E)observing

Question 51

Zac,an American citizen,has worked for a company in Berlin for the last five years.Which of the following scenarios mirrors the situation Zac is in?

A)Sandra is Polish and works for a U.K-based company in Venice.
B)Winston is a U.K.national but has been sent to Canada by his company to handle the operations there for the next two years.
C)Vanessa is English and works in London for a company based in Denmark.
D)Ursula is a Finn but has been in Germany for the last four years,working for a company headquartered in Japan.
E)Nikolai works for an Irish company in Oslo and is a Norwegian by birth.

Question 52

Canada,the People's Republic of China,Indonesia,and the United States are all members of the Asian-Pacific Economic Cooperation.This agreement is an example of an ________ agreement.

A)international license
B)international market
C)international framework
D)international import
E)international export

Question 53

APEC was established in 1989 to further the economic growth and prosperity of the ________ community.

A)North American
B)Asia-Pacific
C)Commonwealth
D)European
E)African

Question 54

The process of bringing individuals who have been working abroad back to their home country and reintegrating them into the organization's home-country operations is called ________.

A)repatriation
B)expatriation
C)immigration
D)polycentrism
E)emigration

Question 55

________ is the sum of all established relationships among resources within an organization.

A)Organization structure
B)Organization overview
C)Organization mission
D)Organization path
E)Organization purpose

Question 56

Which of the following statements is true about NAFTA?

A)It aims at facilitating trade among the United States,Canada,and Mexico.
B)Its members include Denmark,the United Kingdom,Portugal,the Netherlands,Belgium.
C)It is an international market agreement aimed at facilitating trade among African nations.
D)It works to reduce tariffs and other trade barriers across the Asia-Pacific region.
E)It has 21 members,including Canada,the People's Republic of China,Indonesia,and the United States.

Question 57

A partnership formed by a company in one country with a company in another country for the purpose of pursuing some mutually desirable business undertaking is known as a(n)________.

A)international market agreement
B)direct investment
C)joint venture
D)license agreement
E)franchise agreement

Question 58

The organization chart ________.

A)establishes the organization's goals for the year
B)is the graphic illustration of organization structure
C)lists the organizational policies
D)details the organization's plans for achieving its goals
E)is the representation of the organization's financial system

Question 59

An American clothing manufacturer has recently purchased a clothing factory in Taiwan.This action is known as ________.

A)importing
B)exporting
C)licensing
D)direct investing
E)franchising

Question 60

Which of the following countries is a member of the APEC?

A)Germany
B)Egypt
C)Canada
D)Argentina
E)Brazil

Question 61

________ in multinational corporations requires that standards be set,performance be measured and compared to standards,and corrective action be taken if necessary.

A)Planning
B)Organizing
C)Leading
D)Controlling
E)Influencing

Question 62

In Jonovia,employees do not like to be in a situation they know nothing about.They like to be informed about every situation they are likely to face.It can be deduced that Jonovia is a society that has ________.

A)feminine values
B)long-term orientation
C)low power distance
D)high uncertainty avoidance
E)high individualism

Question 63

Which of the following statements is true for the various management attitudes?

A)An organization characterized by the geocentric attitude incurs high travel and training expenses.
B)The ethnocentric attitude reflects the belief that because foreign managers are closer to foreign organizational units,they understand them better.
C)The ethnocentric attitude is generally thought to be the most appropriate for managers in multinational corporations.
D)The polycentric attitude often causes resentment toward the home country within the foreign society.
E)Managers with a geocentric attitude stereotype home-country management practices as sound and reasonable and foreign management practices as faulty and unreasonable.

Question 64

A Belgium-based multinational company hires the best managers for its operations,regardless of the location of those managers.This company is said to have a(n)________.

A)ethnocentric attitude
B)polycentric attitude
C)egocentric attitude
D)geocentric attitude
E)gynocentric attitude

Question 65

Japan has a society that values competitiveness and assertiveness over nurturing others and improving their quality of life.The people believe that success and wealth are very important.Japan is said to have a society that ________.

A)emphasizes masculine values
B)has short-term orientations
C)has high power distance
D)is low on uncertainty avoidance
E)emphasizes collectivism

Question 66

The management of a company decides to take corrective action in the way they have been comparing profits generated by organizational units located in different countries and decides to represent it in terms of different currencies.Which of the following management functions is being performed here?

A)planning
B)influencing
C)controlling
D)organizing
E)leading

Question 67

Which of the following is true according to Hofstede's method of describing culture?

A)Countries with low power distance tend to emphasize,expect,and accept more autocratic than democratic leadership.
B)Highly feminine countries place a high worth on factors like competitiveness,assertiveness,success,and wealth.
C)Power distance is the extent to which a society feels threatened by uncertain or unpredictable situations.
D)Countries that are high in uncertainty avoidance prefer being in more defined and predictable situations.
E)Countries with low uncertainty avoidance deemphasize short-run success to achieve long-run success.

Question 68

________ is the degree to which people in a society operate primarily as individuals or within groups.

A)Uncertainty avoidance
B)Power distance
C)Collectivism
D)Masculinity
E)Feminity

Question 69

________ is the set of characteristics of a given group of people and their environment and includes components like norms,values,habits,education and religion.

A)Culture
B)Politics
C)Laws
D)Attitude
E)Ethics

Question 70

A(n)________ organization considers national borders to be inconsequential to its operations,with ownership,control,and management being from many different countries.

A)international
B)regional
C)pan-national
D)transnational
E)domestic

Question 71

France is a country where employees tend to follow whatever their managers say.They do not question the authority of their managers.Which of the following statements can be deduced from this information?

A)France has a culture that promotes masculinity.
B)France is a country where short-term orientation is prevalent.
C)France is a country with high power distance.
D)France is a society with low uncertainty avoidance.
E)French society promotes individualism.

Question 72

A Canada-based shoe manufacturing company in Malaysia has hired a Malaysian manager to manage it,because the company's CEO believes that the manager will understand the situation and manage the plant better than any foreign manager.This company is said to have a(n)________.

A)ethnocentric attitude
B)polycentric attitude
C)egocentric attitude
D)geocentric attitude
E)gynocentric attitude

Question 73

Organizations headquartered in Pakistan train their employees in order to enable them to tackle the job that has to be performed immediately.The managers also prefer maintaining a day-to-day perspective.Pakistan is a good example of a ________.

A)highly individualistic society
B)highly feminine society
C)short-term oriented society
D)low power distance society
E)low uncertainty avoidance society

Question 74

March Hare Entertainment is a media company in London that specializes in bizarre and sometimes shocking campaigns.The firm is looking to expand into other countries,but will require a culture that is very similar to its home culture: open to experimentation and risk and not authoritarian.Which of the following countries is the best option for March Hare?

A)Germany,which has high power distance and collectivism
B)Denmark,which has low power distance and low uncertainty avoidance
C)Japanese,which culture favors low individualism and high power distance
D)India,which has a long-term orientation and high uncertainty avoidance
E)France,which has low uncertainty avoidance and high power distance

Question 75

Countries that highly promote ________ have citizenry that tends to emphasize,expect,and accept more autocratic than democratic leadership.

A)short-term orientation
B)individualism
C)power distance
D)masculinity
E)collectivism

Question 76

The ________ attitude reflects the belief that because foreign managers are closer to foreign organizational units,they understand them better,and therefore foreign management practices are more insightful than home-country management practices.

A)ethnocentric
B)polycentric
C)egocentric
D)geocentric
E)gynocentric

Question 77

Managers with a(n)________ attitude believe that the overall quality of management recommendations,rather than the location of managers,should determine the acceptability of management practices used to guide multinational corporations.

A)ethnocentric
B)polycentric
C)geocentric
D)xenocentric
E)gynocentric

Question 78

In South Korean society,business success is pursued through people who work as a team.Managers believe that good interpersonal relationships among the members of a team are a must for success.What can be deduced from this?

A)South Korean society has a long-term orientation.
B)South Korea has high power distance.
C)South Korea is low on uncertainty avoidance.
D)South Korea has strong masculine values.
E)South Korea is a collectivist culture.

Question 79

Transnational organizations are also called ________.

A)global corporations
B)multinational corporations
C)international corporations
D)domestic corporations
E)pan-national corporations

Question 80

Which of the following attitudes is generally thought to be the most appropriate for managers in multinational corporations?

A)geocentric
B)ethnocentric
C)polycentric
D)egocentric
E)regiocentric