Deck 5: Managing Globally

Question 1

Grupo Bimbo has 73 worldwide plants and a 26,000-truck fleet that allows products to reach the thousands of grocery stores it serves.

Answer 1

True

Question 2

Grupo Bimbo attempts to compete by producing bread and other products of higher quality and by trying to reach customers more quickly than its competitors.

Answer 2

False

Question 3

In a recent poll, most of the people thought that expanded trade leads to a loss in U.S. jobs.

Answer 3

True

Question 4

Increasingly, trade today is often between different parts of the same corporation or through alliances (joint ventures).

Question 5

A driving force of global activity is the information revolution that permits instantaneous worldwide communication.

Question 6

As domestic policies become more market oriented, governments are responding by opening access to multinational trade.

Question 7

One of the most important factors that has fueled the growth of the global economy is the availability of financial capital and advanced infrastructures in different parts of the world.

Question 8

One-fourth of the world's population has never used a telephone.

Question 9

People of many non-Western cultures view change as part of the evolution of human being and the universe.

Question 10

Five aspects of a culture that have direct implications for managing globally are views of power distance, social orientation, diversity, value system, and cultural distance.

Question 11

Many people in Canada think of time as an extremely scarce commodity.

Question 12

Language serves to bind as well as to separate cultures.

Question 13

When Coca-Cola first marketed Coke in Japan, its ad "Coke ads life" was translated into Japanese to mean "bite the wax tadpole."

Question 14

Americans prefer small power distances, whereas Germans are comfortable with large power distances.

Question 15

The combination of high uncertainty avoidance and power distance produces the desire to have a powerful manager who can be blamed or praised.

Question 16

A country's cultural values determine how people interact with one another and with companies and institutions.

Question 17

At Grupo Bimbo, managers in Mexico use referent power to motivate employees to a greater extent than managers in the United States.

Question 18

Grupo Bimbo feels that having soccer fields located next to their plant contributes to a group mind-set, fosters pride and loyalty, and helps maintain a high-performance work culture.

Question 19

When assessing political risk, factors are grouped into five categories: domestic instability, foreign conflict, political conflict, corruption, and economic climate.

Question 20

Domestic instability is the amount of subversion, revolution, assassinations, guerrilla warfare and government crisis in a country.

Question 21

The political climate reflects the extent of government control of markets and financial investments, as well as government support services and capabilities.

Question 22

Protectionism, bribery, and extortion are significant types of international political mechanisms.

Question 23

Four widely used protectionism mechanisms are imports, exports, subsidies, and cartels.

Question 24

Extortion is a payment made to ensure that the recipient doesn't harm the payer in some way.

Question 25

The World Trade Organization (WTO) has 149 member countries, which account for about 97% of world trade.

Question 26

Three principles are fundamental to World Trade Organization (WTO) operations. Among these, the reciprocity principle means that when country A grants a tariff concession to country B, the same concession automatically applies to all other countries that are member of the WTO.

Question 27

NAFTA essentially created a giant free-trade zone among the United States, Canada and Mexico by reducing barriers to trade, such as tariffs, quotas, and licenses.

Question 28

With the passage of NAFTA, France has become a very competitive nation because of the low cost of labor and well-trained engineers.

Question 29

Currently, labor unions in Mexico are focusing on promoting job stability for their members.

Question 30

An essential stage of the EU program is to complete formation of a common internal market. This involves eliminating financial barriers, which prevent the free movement of investment capital.

Question 31

Organizations typically choose from among six strategies for conducting international business, ranging from low to high in complexity and in resource commitment.

Question 32

An exporting strategy involves maintaining facilities within a home country and transferring goods and services abroad for sale in foreign markets.

Question 33

Under a licensing strategy, the licensor must be concerned about making major capital investments abroad or becoming involved in the daily production, technical, marketing, or management details of the international operation.

Question 34

A franchising strategy involves a parent organization (the franchiser) granting other companies or individuals (franchisees) the right to use its trademarked name and to produce and sell its goods or services.

Question 35

When Singer introduced its sewing machine in the 1850s, Singer decided that the best way to market its machine was to use a network of commissioned sales agents.

Question 36

To tap into a huge upper-middle-class market, Singer offered a discount for cash purchases versus credit card sales.

Question 37

An alliance strategy involves agreeing with other companies to share physical, financial, and human resources to achieve common goals.

Question 38

A profit center is an organizational unit that is only accountable for the revenues generated by its activities.

Question 39

As one of the world's largest companies, Imperial Chemical Industries sales exceed $15.5 million.

Question 40

Imperial Chemical Industries gets more than 30 percent of sales from the United States.

Question 41

Grupo Bimbo, established in Mexico City, Mexico in 1945 as a small bread production and delivery company, now has more than 100 brands including :

A) Tia Rosa
B) Mrs. Baird's
C) Oroweat
D) All of the above are Grupo Bimbo brands

Question 42

Grupo Bimbo's extensive _________________ creates a competitive advantage for the company.

A) distribution network
B) communication channels
C) product development
D) low cost

Question 43

Trade is now so important to the U.S. economy that __________ jobs depends on it.

A) one in three
B) one in four
C) one in six
D) one in ten

Question 44

In a recent poll, most people identified _________ as the biggest threat to U. S. jobs.

A) increased imports
B) immigration
C) poor quality of domestic products
D) cheap foreign labor

Question 45

Since 1995, U.S. exports of goods and services have soared ______ percent, accounting for much of the overall growth in the economy.

A) 15
B) 25
C) 33
D) 45

Question 46

The globalization of business has placed a premium on ____________.

A) tariffs
B) information
C) free trade
D) worker fringe benefits

Question 47

______________ has created a new group of rapid-growth countries in Central and Eastern Europe.

A) The establishment of the European Union
B) The establishment of a common European currency, the Euro
C) NAFTA
D) The collapse of communism in 1989

Question 48

As domestic policies in many foreign countries are becoming more market-oriented, governments are opening their countries to multinational trade and joining regional trade associations. This has led to the emergence of __________.

A) political forces that advocate a return to state-managed economies
B) new strategic partnerships of foreign and domestic organizations
C) corruption
D) NAFTA

Question 49

The people of many non-Western cultures, such as those of India, Saudi Arabia, and China, view change as __________.

A) rapid
B) slow
C) turbulent
D) stable

Question 50

Culture as it relates to __________ in India and Turkey are countries characterized by high uncertainty avoidance.

A) time orientation
B) value systems
C) economic systems
D) social change

Question 51

Which of the following statements is not true about Mexican society?

A) Mexicans feel threatened by uncertain and ambiguous situations.
B) Identifying yourself by title is considered rude.
C) Preserving harmony and saving face is important.
D) Consensus and social harmony is something to be sought.

Question 52

Erin Hyslop works for a company and is compensated on an hourly basis. Her manager has asked her to be more conscientious about her individual productivity and punctuality. Hyslop probably works for a __________ company.

A) Mexican
B) U.S.
C) Chinese
D) British

Question 53

Tony Escabar has received many written and verbal warnings due to excessive tardiness. His philosophy is best characterized as mañana. Escabar's work ethic could probably be attributed to his __________ culture.

A) Japanese
B) Chinese
C) Mexican
D) British

Question 54

Although their attitude is changing, for many managers in Mexico, time commitments are considered ___________________.

A) desirable but not binding
B) undesirable
C) not binding
D) binding

Question 55

______________ serve(s) to bind as well as to separate cultures.

A) The Euro
B) Language
C) Quotas
D) Status systems

Question 56

Matthew Hansen's habit of putting his feet up on the desk during meetings will be perceived as an insulting nonverbal gesture by his __________ coworkers.

A) German
B) Mexican
C) Japanese
D) Jordanian

Question 57

In Mexico, managers are used to giving only ___________ to their employees and to expressing views that only agree with their bosses.

A) positive feedback
B) constructive criticism
C) candid information
D) abrupt dialogue

Question 58

When Coca-Cola first marketed Coke in China in the 1920s, it developed a group of Chinese characters that when translated meant ______________.

A) bring your ancestors back from the dead
B) bite the wax tadpole
C) our drink leaves you nothing to hope for
D) get loose with our drink

Question 59

In __________, clocks, straw sandals, and the colors white, blue, and black are associated with death.

A) China
B) Brazil
C) Mexico
D) Sweden

Question 60

Americans prefer _________ power distances, and Mexicans are comfortable with ____________ power distances.

A) large, moderate
B) small, moderate
C) large, small
D) small, large

Question 61

Paul Dyson is a new manager with Aztec, a company based in Mexico City, Mexico. Dyson was trained in American business, so on his first day with the company in Mexico, he delegated decision making for a new project to his subordinates. Dyson's delegation would most likely make his subordinates __________.

A) uncomfortable
B) grateful for the experience
C) challenged
D) excited for new opportunities

Question 62

__________ refers to differences in religious beliefs, race, social norms, and language between two countries.

A) Power distance
B) Social orientation
C) Cultural distance
D) Multiculturalism

Question 63

Managers in Mexico use ___________ to motivate employees to a greater extent than managers in the United States.

A) coercive power
B) positive reinforcement
C) legitimate power
D) negative reinforcement

Question 64

Grupo Bimbo found that tying project completion to __________________ did little to increase the probability of its success; instead, it stimulated the excuses offered as to why the project was not completed.

A) verbal recognition
B) intrinsic satisfaction
C) corporate success
D) financial incentives

Question 65

_________________ is the probability that governmental decisions or events in a country will negatively affect the long-term profitability of an investment.

A) Political risk
B) Domestic conflict
C) Diplomatic immunity
D) Political climate

Question 66

Domestic instability and corruption are components of _____________.

A) economic risk
B) political risk
C) foreign conflict
D) political climate

Question 67

In his job with Microsoft, Piyali Ghosh monitors political events and decisions in Saudi Arabia to determine the likelihood that these events will adversely affect the profitability of Microsoft's investments in that country. Ghosh works to assess Microsoft's __________.

A) economic risk
B) political risk
C) foreign conflict
D) political climate

Question 68

__________ is not considered a political risk.

A) Corruption
B) Foreign conflict
C) Protectionism
D) Economic climate

Question 69

The amount of subversion, revolution, assassinations, guerrilla warfare, and government crisis in a country is referred to as __________.

A) international stability
B) domestic instability
C) foreign conflict
D) political climate

Question 70

The degree of hostility one nation shows toward others is known as __________.

A) domestic instability
B) international stability
C) foreign conflict
D) political coalitions

Question 71

In 2003, before waging war with Iraq, President George W. Bush determined that the actions of the government of Iraq were an unusual and extraordinary threat to the national security and foreign policy of the United States. This is an example of __________.

A) political risk
B) international instability
C) economic climate
D) foreign conflict

Question 72

The likelihood that a government will swing to the far left or far right politically is known as __________.

A) domestic coercion
B) international control
C) political climate
D) foreign propaganda

Question 73

A number of variables should be assessed to determine the political climate. These variables include all of the following except __________.

A) inequality of the governmental bureaucracy
B) role of the military in the political process
C) number of factions in the legislature
D) extent of racial and nationality tensions

Question 74

Mark Harris has developed an interest in assessing the variables involved in the economic climate. He found that all of the following are included except ____________.

A) government regulatory and economic control prices
B) government inability to manage its own economic affairs
C) government provision of support services
D) government capabilities in general

Question 75

All of the following are considered to be a part of a country's infrastructure, except ___________.

A) wages
B) roads
C) airports
D) electricity

Question 76

____________ relates to the degree to which institutions, including the government, are perceived to be untrustworthy, are open to bribes, and conduct fraudulent business practices.

A) Foreign instability
B) Foreign conflict
C) Political climate
D) Corruption

Question 77

______________ is not a country that ranks low on the corruption index.

A) Venezuela
B) Finland
C) United States
D) New Zealand

Question 78

_________ are not an example of protectionism.

A) Tariffs
B) Joint ventures
C) Quotas
D) Cartels

Question 79

The primary purpose of a tariff is to __________.

A) create a "level playing field"
B) raise the price of imported goods
C) subsidize domestic industries
D) create tax revenue

Question 80

A restriction on the quantity of a country's imports is known as a __________.

A) quota
B) tariff
C) price control
D) boycott