Deck 4: Managing Globally

Question 1

Many people in the United States and Canada think of time as an abundant commodity.

Answer 1

False

Question 2

Four aspects of a culture that have direct implications for international management are views of social change, time orientation, language, and value system.

Answer 2

True

Question 3

Organizations typically choose from among four strategies for conducting international business.

Answer 3

False

Question 4

Which of the following is not a problem Wal-Mart is facing in its overseas operations?

A) highways are not as good as North America
B) low education and motivation of store employees
C) purchasing strategy is more of a problem
D) ability to manage high-volume inventory

Question 5

By becoming a contractor, importer, and wholesaler, Wal-Mart expects to __________.

A) cut off supplies to its competitors
B) sell its own brands cheaper than name brands
C) bring lower cost merchandise to America
D) speed up supply lines

Question 6

The Wal-Mart preview case illustrated the effect of several global forces that an increasing number of companies face. Which of the following is not one of these forces?

A) entrenched local competitors
B) pressures on prices
C) need for cost cutting
D) All of the above are global forces that Wal-Mart faces.

Question 7

__________ refers to the deeply rooted system of unspoken principles that guide individuals in their everyday behaviors.

A) Collectivism
B) Social norms
C) Cultural distance
D) Values

Question 8

For Mexican workers, the combination of high uncertainty avoidance and power distance produces the desire for __________.

A) a powerful manager who can be praised or blamed
B) high government intervention in everyday life
C) guaranteed salaries rather than production bonuses
D) minimal levels of direct supervision on the job

Question 9

Motorola's managers in Malaysia found that cultural forces caused local employees to __________.

A) not communicate honestly with Americans
B) try to avoid making decisions
C) be disrespectful to the women workers
D) not complain about unsafe work conditions

Question 10

Motorola's team building initiative in their Malaysian operation emphasized treating people with respect, giving rewards to achievers, and sharing every success story. The outcome observed from this approach was __________.

A) a complete failure
B) copied by many other Malaysian companies
C) only effective with one team
D) highly successful

Question 11

Infrastructure is one of the elements of ___________.

A) domestic integration
B) international negotiation
C) foreign climate
D) economic climate

Question 12

A company in violation of the U.S. Foreign Corrupt Practices Act of 1977 may be fined up to __________.

A) $250,000
B) $10,000,000
C) $10,000
D) $1,000,000

Question 13

Japanese rice farmers have their local markets protected by a number of mechanisms similar to the paint industry. Foreigners who would like to enter the Japanese market are primarily exposed to obstacles arising from __________.

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

Question 14

Which of the following is not a technique used by Japanese paint producers to keep out foreign competitors?

A) predatory pricing
B) tariffs and quotas
C) just-in-time delivery
D) complicated distribution systems

Question 15

France has a protected market for paint used on __________ that foreign producers are unable to gain access to.

A) airplanes
B) government buildings
C) roads
D) road signs

Question 16

The World Trade Organization (WTO) has 144 member countries, which account for about ______ percent of world trade.

A) 65
B) 75
C) 85
D) 95

Question 17

Which of the following is not one of the goals of the European Union?

A) the creation of a single market among member countries
B) educational degree standardization for professionals
C) establishing the free movement of goods, people, services and investment capital
D) All of the above are goals of the European Union.

Question 18

The formation of alliances, especially joint ventures, has been stimulated by all of the following needs and desires except __________.

A) the need to share and lower the costs of high-risk, technologically intensive development projects, such as computer-based information systems
B) the desire to maximize costs by sharing the large fixed-cost investments for manufacturing plants in some locations and in industries such as autos and steel.
C) the desire to learn another firm's technology and special processes or to gain access to customers and distribution channels
D) the desire to participate in the evolution of competitive activity in growing global industries

Question 19

__________ requires foreign companies to form some sort of alliance with local participants rather than establish wholly owned subsidiaries in the country.

A) Mexico
B) Finland
C) China
D) South Africa

Question 20

ICI makes paint products for global markets at its Delaware headquarters because __________.

A) huge local sales volume invites product development
B) aggressive global marketing talent is available
C) American paint researchers have proven to be the best
D) special tax incentives are available to Delaware corporations

Question 21

Wal-Mart is pursuing continued growth by going global. Although it depends on a proven business model that translates internationally, there are some serious issues that the company must address. What are these problems?