Deck 3: Integrative Managerial Issues

Question 1

Which of the following would NOT be called an "American company"?

A)a multidomestic with a home base in Memphis, Tennessee
B)a global corporation that originated in Dallas, Texas and has operations in 12 countries
C)a transnational that originated in New York City with operations in 6 countries
D)a global corporation that began in Japan but has since relocated and now has its sole headquarters in Chicago

Answer 1

C

Question 2

Which of the following is usually found in the final stage of an organization's global evolution?

A)exporting products to other countries
B)outsourcing jobs to foreign countries
C)establishing strategic alliances with partners
D)licensing products in foreign countries

Answer 2

C

Question 3

A fully global organization might set up a ________ with a foreign company to create a new, independent company that produces a specific product.

A)foreign subsidiary
B)franchise
C)licensing agreement
D)joint venture

Answer 3

D

Question 4

A global corporation ________.

A)centralizes management in a single home country
B)decentralizes management so that each local country's operation is managed locally
C)decentralizes management so there is no single home location
D)has two main management locations located on different sides of the globe

Question 5

Joint ventures are a type of ________.

A)license
B)franchise
C)foreign subsidiary
D)strategic alliance

Question 6

How do global supply chains resemble biological organisms?

A)Global supply chains are highly resilient in many ways, yet show marked vulnerability to seemingly small events.
B)Global supply chains are highly resilient in many ways, yet they show a marked need for increasing amounts of energy.
C)Global supply chains are highly resilient in many ways, yet they show a marked need for conflict and war.
D)Global supply chains are highly resilient in many ways, yet show marked vulnerability to microscopic intruders.

Question 7

Which of the following best characterizes a transnational corporation?

A)a single central home-country management
B)an organization in which multiple operations function with a large degree of autonomy
C)a loose alliance of totally separate, wholly independent companies
D)a company that eliminates geographical boundaries

Question 8

Franchising is used widely by ________.

A)universities
B)accounting firms
C)restaurant chains
D)electric power companies

Question 9

A global village can be best characterized as a business climate in which there are ________.

A)rigid international boundaries
B)no international boundaries
C)rigid rules and standards
D)no rules or standards

Question 10

Of the approaches to pursuing international markets, developing a ________ involves the greatest commitment and risk.

A)franchise
B)joint venture
C)strategic alliance
D)foreign subsidiary

Question 11

Which of the following factors has contributed to the current view that management is more unethical today than before?

A)increasing publicity
B)increasing government standards
C)decreasing employee morale
D)changes in shareholder expectations

Question 12

When a U.S.ship yard purchases raw materials from locations around the world, for example steel from China, this is called ________.

A)licensing
B)a joint venture
C)global sourcing
D)a global alliance

Question 13

________ is a good example of a multidomestic corporation.

A)Coca-Cola
B)John Deere
C)Procter & Gamble
D)The New York Yankees

Question 14

Parochialism is ________.

A)acceptance of diverse points of view
B)a desire to leave one's own culture for a foreign culture
C)a tendency to view the world through a single perspective
D)recognition of diverse religious beliefs

Question 15

Which of the following is NOT a key characteristic of a global organization?

A)exchanges goods and services with consumers in other countries
B)employs high-level technical employees and managerial talent from other countries
C)uses resources from other countries
D)has a home country in which all decisions are made and all profits flow

Question 16

Which choice constitutes the typical first step for an organization that is "going global"?

A)outsourcing
B)franchising
C)licensing
D)strategic alliance

Question 17

Which statement most closely represents the true state of managerial ethics?

A)There has been little reporting on managerial ethics by the press.
B)Younger managers are more ethical than older managers.
C)Managers from foreign companies are less ethical than those from the United States.
D)Managers are more ethical today than in the past.

Question 18

A Coca-Cola bottling plant in Bolivia is wholly owned by a local businessperson.What kind of venture is this plant likely to be?

A)a franchise
B)a licensed plant
C)a foreign subsidiary
D)a joint venture

Question 19

A multinational corporation (MNC)________.

A)is any organization that maintains operations in more than one country
B)is defined as a company that has its home base in the United States and various operations overseas
C)includes any company that exports goods overseas
D)is defined as any company that has no home base

Question 20

Which of the following is the best synonym for the word parochial?

A)religious
B)catholic
C)broad
D)narrow

Question 21

As a business expansion director, Shana's goal is to scout potential locations for her company's planned expansion to other countries. There are many options, some of which include maintaining the business's head office in the United States. Other options send company representatives to foreign operations when necessary, or establishing separate operation facilities abroad and hiring locals as managers.

-If Shana's company decides to open operations in France but maintain company management in the United States, it would be considered a ________.

A)transnational corporation
B)global corporation
C)multidomestic corporation
D)joint venture

Question 22

A country with a high uncertainty avoidance ________.

A)is highly structured and depends on rules and social institutions to cope with uncertainty
B)is highly structured and does not depend on rules and social institutions to cope with uncertainty
C)has no rules
D)has no structure or social institutions

Question 23

A game company in Thailand wants TJ Soft to join it and work together to create a new game that bears the brand name of both companies.What would be an appropriate approach for this venture?

A)global strategic alliance
B)licensing agreement
C)joint venture
D)franchise

Question 24

In his study of differences in cultural environments, Geert Hofstede found that ________.

A)people are largely the same from culture to culture with respect to values
B)the views of managers differ greatly from those of employees with respect to values
C)the views of IBM employees differ widely from the general population with respect to values
D)people vary from culture to culture in five value categories

Question 25

As a business expansion director, Shana's goal is to scout potential locations for her company's planned expansion to other countries. There are many options, some of which include maintaining the business's head office in the United States. Other options send company representatives to foreign operations when necessary, or establishing separate operation facilities abroad and hiring locals as managers.

-Shana is considering forming a partnership with a Dutch corporation that will create an entirely new company called Half Moon.What kind of enterprise will Half Moon be?

A)a multidomestic corporation
B)a foreign subsidiary
C)a joint venture
D)a domestic subsidiary

Question 26

As a business expansion director, Shana's goal is to scout potential locations for her company's planned expansion to other countries. There are many options, some of which include maintaining the business's head office in the United States. Other options send company representatives to foreign operations when necessary, or establishing separate operation facilities abroad and hiring locals as managers.

-If Shana's company decides to open a new operation in Germany that has local managers and is run locally but still exists under the umbrella of the home company, it would be considered a ________.

A)national corporation
B)borderless organization
C)trade alliance
D)multidomestic corporation

Question 27

In a country with a low uncertainty avoidance, people cope with uncertainty ________.

A)by following rules and depending on social institutions
B)by making new rules
C)largely without rules or strong social institutions
D)by looking to the religious teachings

Question 28

As a business expansion director, Shana's goal is to scout potential locations for her company's planned expansion to other countries. There are many options, some of which include maintaining the business's head office in the United States. Other options send company representatives to foreign operations when necessary, or establishing separate operation facilities abroad and hiring locals as managers.

-If Shana's company reorganizes based on industry groups with no designated home country, the entire organization would be considered a ________.

A)transnational organization
B)strategic alliance
C)multidomestic corporation
D)global corporation

Question 29

A firm in South America wants to open a TJ Store in a shopping mall.What is the best approach for this firm?

A)strategic alliance
B)licensing agreement
C)franchise
D)foreign subsidiary

Question 30

________ is a cultural dimension measured by Hofstede in which people identify strongly with a group within a society.

A)Power distance
B)Collectivism
C)Individualism
D)Uncertainty avoidance

Question 31

Which of the following dimensions from the GLOBE framework has no equivalent counterpart in Hofstede's framework?

A)gender differentiation
B)humane orientation
C)future orientation
D)individualism/collectivism

Question 32

Which of the following would be likely to be true in a country with a high power distance?

A)Hundreds of statues, billboards, and posters of the leader would appear all over the capital.
B)The leader's likeness would appear only in the newspaper from time to time.
C)Top managers and employees would dress in similar ways.
D)Rather than employ a driver, top managers would drive their own cars to work.

Question 33

Status in France within a corporation is largely ________.

A)measured in the same way it is in the United States
B)based on how much money a person makes
C)based on such things as seniority and educational level
D)based on an individual's personal accomplishments

Question 34

A foreign company wants to be able to copy and manufacture TJ Soft programs and sell them in its stores.What would be an appropriate approach for them to use?

A)licensing
B)franchising
C)renting
D)appropriating

Question 35

As a business expansion director, Shana's goal is to scout potential locations for her company's planned expansion to other countries. There are many options, some of which include maintaining the business's head office in the United States. Other options send company representatives to foreign operations when necessary, or establishing separate operation facilities abroad and hiring locals as managers.

-Shana's company hopes to become a fully global corporation in the coming years.Which of the following would best indicate that the company is fully "global"?

A)exporting and importing
B)licensing
C)setting up a foreign subsidiary
D)franchising

Question 36

Societies with a high assertiveness rating on GLOBE would tend to be ________.

A)passive
B)excessively polite
C)competitive
D)uncertain

Question 37

Which feature of Hofstede's work lends the study a great deal of validity?

A)It measured attitudes of IBM employees.
B)It measured attitudes of many successful people.
C)The survey was carried out in the 1970s.
D)It surveyed 116,000 people.

Question 38

________ on Hofstede's dimensions of natural culture is an attribute that describes how materialistic a society is.

A)Power distance
B)Quality of life
C)Quantity of life
D)Individualism

Question 39

As a business expansion director, Shana's goal is to scout potential locations for her company's planned expansion to other countries. There are many options, some of which include maintaining the business's head office in the United States. Other options send company representatives to foreign operations when necessary, or establishing separate operation facilities abroad and hiring locals as managers.

-Shana's company "went global" several years ago.Which of the following was likely to have been the first step it took in going global?

A)outsourcing
B)importing
C)exporting
D)licensing

Question 40

In a society with high ________ on GLOBE, you would expect members of a corporation to have a strong identification with the corporation.

A)gender differentiation
B)future orientation
C)in-group collectivism
D)humane orientation

Question 41

In Greece Jana visited a pharmaceutical operation.She found that managers there were charming but not at all shy.If they thought they were right they tended to be aggressive and confrontational.How would you characterize this trait?

A)high uncertainty avoidance
B)assertive
C)future oriented
D)low uncertainty avoidance

Question 42

Transnational corporations run their businesses from their home country.

Question 43

In Denmark Jana met people who marveled about the ability of Americans to be so "bold" and flexible when it came to making decisions about the future, while the Danish tended to rely on rules when facing uncertainty.How would you characterize this trait that Americans appear to have?

A)low uncertainty avoidance
B)high uncertainty avoidance
C)high power distance
D)individualistic

Question 44

Multinational corporations maintain significant operations in two or more countries simultaneously.

Question 45

In Venezuela Jana found that people tended to show great deference toward their superiors.When meeting with one higher-up, she noticed that the local managers seemed to exhibit extremely obsequious behavior.How would you characterize this trait?

A)future oriented
B)high uncertainty avoidance
C)low power distance
D)high power distance

Question 46

In a strategic alliance, companies join together to form a separate entity to produce a product.

Question 47

Sony is an example of a multidomestic company.

Question 48

The reality is that managers are more unethical than in the past.

Question 49

After the global sourcing stage, companies that are going global often turn to exporting and importing goods across international borders.

Question 50

Licensing and franchising typically follow the export-import phase of globalization.

Question 51

The boundaries of the global village are drawn by the major economic powers-the United States, China, and Japan.

Question 52

Global supply chains are similar to biological systems in being resilient and resistant to change but surprisingly vulnerable at the same time.

Question 53

When organizations go global, they often start by simply exporting products to one or more foreign countries.

Question 54

In Mexico and Japan, Jana noticed that it seemed easy to convince people to work together for the good of the group.How would you characterize this trait?

A)collectivist
B)individualist
C)humane
D)assertive

Question 55

An organization can be considered "global" simply if it carries out trade with other countries.

Question 56

The strength of global supply chains is clearly illustrated by their response to such events as unrest in the Middle East or an earthquake in Japan.

Question 57

An organization that hires employees from other countries but does not obtain financing from a foreign source cannot be considered global.

Question 58

A common myth is that managers are less ethical today than in the past.

Question 59

John Deere is an example of a multidomestic company.

Question 60

One of the reasons the public believes business leaders are more unethical is the attention it receives in the press.

Question 61

Which of the following is the best example of a company being socially responsive?

A)meeting hazardous materials standards
B)giving Christmas bonuses to worthy employees
C)displaying "think green" posters
D)building a community day-care center

Question 62

In a short essay, discuss the value of Hofstede's values study to managers.

Question 63

The classical view of social responsibility is that a for-profit organization's responsibility is ________.

A)to help as many people as possible
B)to maximize both profits and the general welfare
C)to maximize profits only
D)to maximize opportunity for all

Question 64

Managers with a parochial view of the world tend to see things from the point of view of a foreign culture.

Question 65

The socioeconomic view of social responsibility is that a for-profit organization's responsibility is ________.

A)to maximize stockholder wealth
B)to maximize both profits and the general welfare
C)to do what only the law requires
D)to maximize opportunities for citizens in developing countries

Question 66

In a short essay, explain the differences between a multidomestic corporation, a global corporation, and a transnational corporation.

Question 67

Which of the following best summarizes Blake Mycoskie's (the founder of TOMS shoes)business philosophy?

A)A business should be ethical but not socially responsible.
B)A business should be socially responsible but not ethical.
C)A business should be both ethical and socially responsible.
D)A business should not worry about being either ethical or socially responsible.

Question 68

Hofstede's findings have received little support in the academic world and were not confirmed by later studies.

Question 69

Cultures with a high assertiveness rating tend to have people who are timid and shy.

Question 70

In a short essay, list and explain the first three of Hofstede's dimensions of national culture.

Question 71

A society with high uncertainty avoidance relies on rules and trusts its social institutions to deal with an uncertain future.

Question 72

In a short essay, define parochialism and explain why it can be a problem for U.S.managers.

Question 73

In a short essay, describe the steps a company takes in going global.

Question 74

The United States is an example of a country with small power distance.

Question 75

According to Hofstede, countries such as Singapore and Japan are more collectivist than the United States.

Question 76

Hofstede based his ratings on the traits of people of different nationalities with whom he was personally acquainted.

Question 77

A company that meets its social obligation ________.

A)fulfills its economic responsibilities only
B)fulfills its legal and economic responsibilities only
C)goes beyond its legal and economic responsibilities and responds to some pressing social need
D)does not need to obey local laws

Question 78

Future orientation is a measure of how successful a society is at delaying gratification.

Question 79

In a short essay, list and explain the last two of Hofstede's dimensions of national culture.

Question 80

French organizations have a very different view of status than American organizations.