Deck 3: Managing in a Global Environment

Question 1

The criterion traditionally used to classify countries as developed or developing is per capita income.

Answer 1

True

Question 2

Some economic environments of business include resource and product markets,language,religion,and per capita income.

Answer 2

False

Question 3

Because of cheap labor,most international business firms are headquartered in the less developed countries of Asia and South America.

Answer 3

False

Question 4

Countertrade is the barter of products for products rather than the sale of products for currency.

Question 5

With exporting,the corporation transfers its products for sale and its production facilities in foreign countries.

Question 6

When Harbor Trades,a Korean-based company,makes resources including technology,managerial skills,and patent and trademark rights available to Nano Technologies,a Russian company whereby allowing Nano to make products similar to CBA,it is engaging in a countertrade agreement.

Question 7

A country's physical facilities that support economic activities make up its infrastructure.

Question 8

Seeking cheaper sources of materials or labor offshore is called offshoring.

Question 9

The countries experiencing political stability face the greatest threat of violence.

Question 10

Infrastructure management is the management of business operations conducted in more than one country.

Question 11

In today's world,every manager needs to think locally.

Question 12

Business has become a unified,global field as trade barriers fall,communication becomes faster and cheaper,and consumer tastes converge.

Question 13

An example of global outsourcing is seen when Gap,Inc.uses low-cost Caribbean labor to cheaply produce its clothing,and then finishes off and sells its clothing in the United States.

Question 14

An estimated 55 percent of world trade is countertrade.

Question 15

LDCs are less developed countries and tend to be found in the Southern Hemisphere including Africa,Asia and South America.

Question 16

The sub-divisions of the international environment are the economic,the sociocultural,and the legal-political environments.

Question 17

Market risk is defined as the risk of loss of assets,earning power,or managerial control due to politically based events or actions by host governments.

Question 18

Outsourcing is perhaps the most widespread approach to international involvement in China and India.

Question 19

The basic management functions of planning,organizing,leading,and controlling are the same whether a company operates domestically or internationally.

Question 20

The second stage in the process of globalization is the international stage,where the company usually adopts a multidomestic approach.

Question 21

When an organization has an instrumental attitude toward people it treats employees as a resource to be used.

Question 22

According to the GLOBE Project,gender differentiation refers to the extent to which a society maximizes gender role differences.

Question 23

A low-context culture is a culture in which communication is used to enhance personal relationships.

Question 24

The fifth dimension of Hofstede's social values is preliminary-term orientation and extended-term orientation.

Question 25

Ethnocentrism refers to a natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values.

Question 26

German,Swiss,and North American cultures are among the high-context cultures.

Question 27

According to Spotlight on Skills box in Chapter 3,being on-time for appointments is very important in Brazil.

Question 28

When an organization has a humanistic attitude,it values employees as an end in themselves.

Question 29

Collectivism means a preference for a tightly knit social framework in which individuals look after one another and organizations protect their members' interests.

Question 30

A company's political risk includes riots,revolutions,civil disorders,and frequent changes in government.

Question 31

Linguistic pluralism occurs in countries like India where more than one language exist.

Question 32

According to the GLOBE Value Dimensions,Japan and Russia both have very high performance orientation.

Question 33

Countries that value high power distances normally have cities that are geographically separated and so have the need to transport electrical energy over large distances.

Question 34

A high-context interaction requires more time because a relationship has to be developed,and trust and friendship must be established.

Question 35

According to the GLOBE Project,a society with a high performance orientation places high emphasis on performance and rewards people for performance improvements and excellence.

Question 36

The social value of uncertainty avoidance is evident in countries like Japan which support beliefs that provide stability and conformity among its citizenry.

Question 37

In countries with strong masculine social values including Austria and Japan,both men and women subscribe to the dominant masculine value.

Question 38

According to Spotlight on Skills box in Chapter 3,the polite way to give your business card to a Japanese business person is when first meeting,presenting your card with both hands.

Question 39

Social values greatly influence organizational functioning and management styles.

Question 40

Unfortunately,many U.S.managers fail to realize that the values and behaviors that typically govern how business is done in the United States do not translate to the rest of the world.

Question 41

There are three components to cultural intelligence: cognitive,emotional,and physical.

Question 42

Fifteen member states of the EU have adopted the rupee,as a single European currency.

Question 43

Licensing means engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies.

Question 44

Brazil is known to have a young,vibrant population and a rapidly growing middle class that is eager to experience the finer things in life.

Question 45

An organization developed for the purpose of eliminating tariffs in trading between Japan and the United States is called The North American Freedom of Tariffs Administration (NAFTA).

Question 46

The goal of the European Union is to create a powerful single market system for Europe's millions of consumers.

Question 47

Globalization reached its peak in the 1970s,and is decreasing at a gradual rate.

Question 48

The estimated 2010 misery index figures suggest significantly less misery for almost every country as compared to figures at the beginning of the century.

Question 49

The United States has the largest mobile phone market in the world.

Question 50

Cultural intelligence refers to a person's ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.

Question 51

In India,it is not uncommon for social media companies such as Facebook and Twitter to be required by law to comply with requests to take down content considered incendiary by government entities.

Question 52

A high performance orientation means that a society encourages toughness,assertiveness,and competitiveness.

Question 53

A manager's reality is that isolation from international forces is entirely possible.

Question 54

A tendency to regard their own culture as superior and to downgrade other cultures reflects an attitude called geocentric.

Question 55

Whereas China is strong in software services,India is a rising power in manufacturing.

Question 56

Culture shock refers to the frustration and anxiety that result from constantly being subjected to strange and unfamiliar cues about what to do and how to do it.

Question 57

High cultural intelligence requires that a manager be open and receptive to new ideas and approaches.

Question 58

Culture shock refers to a person's ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.

Question 59

Ethnocentrism refers to a natural tendency of people to regard their own culture as inferior to other cultures.

Question 60

High-context cultures include Asian and Arab countries,whereas low-context cultures tend to be American and Northern European.

Question 61

____ is the most widespread approach to international involvement in China and India.

A) Importing
B) Exporting
C) Manufacturing
D) Outsourcing
E) Greenfield venture

Question 62

The Maquiladora industry along the Texas-Mexico border on the Mexico side uses cheap labor for assembling products.This lowers the price for U.S.consumers and is an example of

A) licensing.
B) joint venture.
C) outsourcing.
D) franchising.
E) none of these.

Question 63

As a first step into international business,which two countries are most companies going to today?

A) Russia and Japan
B) Sweden and Germany
C) China and India
D) Brazil and Philippines
E) Indonesia and Brazil

Question 64

The term top of the pyramid refers to the more than four billion people who earn the least,as defined by per capita income.

Question 65

Which of the following is an entry strategy in which the organization maintains its production facilities within its home country and transfers its products for sale in foreign markets?

A) Franchising
B) Licensing
C) Exporting
D) Greenfield venture
E) Joint venture

Question 66

The process of globalization typically passes through all of the following stages EXCEPT

A) domestic stage.
B) global stage.
C) international stage.
D) interdomestic stage.
E) multinational stage.

Question 67

Global Dandelion,with explosion of international operations stage of developement,is participating at what stage of globalization in the international arena?

A) International stage
B) Global stage
C) Domestic stage
D) Multinational stage
E) Interdomestic stage

Question 68

A form of exporting to less-developed countries is called

A) licensing.
B) franchising.
C) greenfield venture.
D) joint venture.
E) countertrade.

Question 69

____ aspects of management do not change when doing business internationally.

A) Planning
B) Organizing
C) Controlling
D) Leading
E) All of these

Question 70

China and India are ranked first and second on the 2009-2010 Global Competitiveness Ranking of World Economic Forum.

Question 71

Language,values,religion,and education all describe which dimension in the international environment?

A) Economic
B) Legal
C) Political
D) Sociocultural
E) Technological

Question 72

Quality-cast Telecom with an export-oriented,multidomestic strategic orientation would be participating in what stage of the international arena?

A) Domestic stage
B) International stage
C) Multinational stage
D) Global stage
E) Binational stage

Question 73

In the ____ stage a company usually adopts a multidomestic approach.

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

Question 74

In a recent Fortune magazine poll,68 percent of Americans say other countries benefit the most from free trade.

Question 75

Today's companies compete in a ____.

A) growingly domestic economy
B) low-context culture
C) high-context culture
D) Greenfield economy
E) borderless world

Question 76

In which stage,market potential is limited to home country,with all production and marketing facilities located at home?

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

Question 77

Most firms begin with which strategy to enter foreign markets?

A) Exporting
B) Greenfield venture
C) Joint venture
D) Acquisition
E) Direct investment

Question 78

The management of business operations conducted in more than one country is called

A) global management.
B) international management.
C) outsourcing management.
D) planning management.
E) domestic management.

Question 79

What is exporting?

A) Countertrade
B) The barter of products for products, often used in developing nations
C) Items produced in the home country for sale in foreign markets
D) All of these
E) None of these

Question 80

Which of the following refers to engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country?

A) Franchising
B) Licensing
C) Market entry strategy
D) Outsourcing
E) Activity