Deck 4: Managing in a Global Environment

Question 1

'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
E)acceptance of one dominant and one secondary 'correct' cultural view

Answer 1

C

Question 2

Ethnocentric views concentrate on their ________.

A)home country
B)host country
C)world orientation
D)racial orientation
E)countries that use the same language

Answer 2

A

Question 3

In a survey of 1250 manufacturing firms, it was found that companies that operated in multiple countries had half the sales growth and the profitability of domestic firms.

Answer 3

False

Question 4

The polycentric attitude is a world-oriented view focusing on using the best approaches and people from around the globe.

Question 5

Like Americans, Australians and New Zealanders tend to suffer from parochialism.

Question 6

One reason for parochialism in Australia and New Zealand is that their students tend to seriously study ________ in school.

A)only English
B)only two languages
C)English and French
D)English and German
E)German and Spanish

Question 7

Which of the following is the least favourable attitude for an Australian or New Zealand manager who wishes to be successful in international business?

A)multicultural
B)multi-country
C)geocentric
D)polycentric
E)ethnocentric

Question 8

Which of the following events did NOT contribute to the involvement of Australian and New Zealand based companies in global operations?

A)Australia and New Zealand lost European markets due to the forming of the EU.
B)Australia and New Zealand have come of age.
C)Australia and New Zealand have not had multicultural education.
D)Australia and New Zealand have had an influx of immigrants from Southeast Asia.
E)Australia and New Zealand have recognised the need to develop economic ties with their immediate neighbours in the Asia-Pacific region.

Question 9

A(n)________ attitude is a parochialist belief that home-country practices are best.

A)ethnocentric
B)polycentric
C)geocentric
D)international
E)global

Question 10

Managers with a polycentric attitude would view every foreign operation as different and hard to understand.

Question 11

Which of the following describes the current state of world use of languages?

A)Germans and Italians, unlike other Europeans, only speak their native language.
B)Americans tend to study many other languages in school.
C)Most Japanese begin learning English by their third year of high school.
D)Competitive advantage can only be maintained by speaking several languages.
E)Japanese is expected to be the most used international language by the year 2020.

Question 12

A world-oriented view that focuses on using the best approaches and people from around the globe is referred to as ________.

A)ethnocentric
B)polycentric
C)geocentric
D)international
E)global

Question 13

Geocentric views centre on ________.

A)a global view in the organisation's headquarters
B)a global view in the organisation's foreign work facilities
C)a global view in the organisation's headquarters and foreign work facilities
D)a manager's religious and spiritual perspective
E)regional trading and cooperation agreements

Question 14

Managers with an ethnocentric attitude would not trust foreign employees with key decisions or technology.

Question 15

A(n)________ attitude is the view that host-country managers know best practices for running their operations.

A)ethnocentric
B)polycentric
C)geocentric
D)international
E)global

Question 16

A geocentric attitude is characterised by parochialism.

Question 17

A drawback of the geocentric perspective is that it is inflexible.

Question 18

For Australian businesses to have successful global management, which of the following statements provides the best advice?

A)Australians should continue to push for the use of English only.
B)Stick to your own customs to avoid embarrassing incidents.
C)Make sure foreign business people know you are Australian so they will speak to you in English.
D)Patronise foreign customs until your counterparts become comfortable with the Australian values.
E)Develop an understanding of cross-cultural differences.

Question 19

Which of the following would be an example of a manager displaying a parochial attitude in a foreign environment?

A)enjoying the silence in a meeting with Japanese
B)learning how to drink alcohol with meals while negotiating with French counterparts
C)trying to negotiate a business deal in Japan without paying attention to local manners and customs
D)speaking Spanish in Mexico
E)reading about the Muslim faith prior to visiting Iraq

Question 20

Which of the following is an Australian global corporation?

A)ExxonMobil
B)Citigroup
C)Proctor & Gamble
D)BHP
E)Ford

Question 21

Which of the following is NOT an advantage of a polycentric perspective?

A)extensive knowledge of foreign markets
B)best people and work approaches used regardless of origin
C)more support from host government
D)extensive knowledge of foreign workplaces
E)committed local managers with high morale

Question 22

Mercosur is a trading group made up of South American countries.

Question 23

________ management requires enhanced sensitivity to differences in national customs and practices.

A)Ethnocentric
B)Polycentric
C)Global
D)Parochial
E)Domestic

Question 24

The Australian-New Zealand Closer Economic Relations (CER)is the only bilateral free trade agreement that Australia is a party to.

Question 25

Scenario-based questions: First Visit Abroad
Bill Sanderson is in the air over the Middle East and is excited about his first European business trip.His goal is to scout out potential locations and basically provide input as to how the company should proceed with expanding abroad.There are many options, including maintaining the business' head office in Australia and sending over company representatives when necessary or developing a separate company in Europe and hiring locals as managers.In any case, he is confident about this trip but is somewhat concerned about the strange habits and foreign languages.(If only they would just speak English like everyone else!)
Refer to First Visit Abroad (Scenario).Bill's tendency to view the world only through his Australian-based eyes and perspectives is an international business problem known as which of the following?

A)non-diversity
B)discrimination
C)parochialism
D)monolingualism
E)bigotry

Question 26

The primary motivation for the creation of the Association of South East Asian Nations (ASEAN)was to accelerate economic progress and increase stability in the Asian region.

Question 27

The three original partners of NAFTA are the United States, Canada and Mexico.

Question 28

In a short essay, list and discuss the three attitudes managers might have toward international business.

Question 29

Successful global management requires an attitude that is best described as ________.

A)ethnocentric
B)parochial
C)polycentric
D)geocentric
E)duocentric

Question 30

What is the goal of the World Trade Organization?

A)to eliminate border taxes, but increase border subsidies between the countries
B)to remove all barriers between countries
C)to help countries conduct trade through a system of rules
D)to increase the profits of multinational companies
E)to prevent the exploitation of people and the environment worldwide

Question 31

All members of the EU have united under the same currency - the euro.

Question 32

Which trade agreement began with 10 Southeast Asian nations and now encompasses a market of more than 622 million people with a combined GDP of US $2.6 trillion?

A)NAFTA
B)The EU
C)ASEAN
D)SAARC
E)FTAA

Question 33

Before the current round of regional trading alliances, what was international competition like?

A)Competition existed only within continents.
B)Competition was country against country.
C)Opportunities were defined by global trading alliances.
D)There was a general agreement to not charge tariffs.
E)both A and B

Question 34

Scenario-based questions: First Visit Abroad
Bill Sanderson is in the air over the Middle East and is excited about his first European business trip.His goal is to scout out potential locations and basically provide input as to how the company should proceed with expanding abroad.There are many options, including maintaining the business' head office in Australia and sending over company representatives when necessary or developing a separate company in Europe and hiring locals as managers.In any case, he is confident about this trip but is somewhat concerned about the strange habits and foreign languages.(If only they would just speak English like everyone else!)
Refer to First Visit Abroad (Scenario).If Bill is to successfully manage in a global environment, he must ________.

A)attempt to change other cultures to Australian ways
B)learn and accept other cultures
C)compete internationally but remain in Australia
D)learn to manipulate other business cultures
E)learn to not say anything in foreign business meetings to avoid making mistakes

Question 35

Which of the following was formed to reassert the region's economic position against the United States and Japan?

A)Association of Southeast Asian Nations
B)African Union
C)NAFTA
D)European Union
E)Australia-New Zealand Closer Economic Relations Agreement

Question 36

The geocentric attitude is a ________ view.

A)nationalistic
B)world-oriented
C)culture-bound
D)franchise-based
E)best management approach

Question 37

In a short essay, define 'parochialism'.Next, discuss why parochialism is a problem for Australian managers and discuss reasons it is important to overcome parochialism in today's business environment.

Question 38

Which country does NOT have a bilateral trade agreement with Australia?

A)Singapore
B)New Zealand
C)Thailand
D)Bahrain
E)United States

Question 39

Successful global management requires ________.

A)rigid application of home-country practices
B)enhanced sensitivity to differences in national customs and practices
C)Americanisation of foreign managers
D)teaching English to foreign nationals
E)a 'hands-off' attitude

Question 40

Which of the following is NOT yet a member of the European Union?

A)Greece
B)Ireland
C)Sweden
D)Turkey
E)Finland

Question 41

The transnational corporation characterises the ethnocentric attitude towards the management of an organisation's global business.

Question 42

The Southern Common Market is also known as ________.

A)EU
B)Mercosur
C)NAFTA
D)SAFTA
E)Association of South American Countries

Question 43

When organisations first go international, they often start with global sourcing.

Question 44

Scenario-based questions: A Foreign Alliance Talk
As manager of the international department for your company, you have been asked by the local Chamber of Commerce to deliver a speech on 'foreign trade'.You are requested to include the EU, ASEAN because many members believe that the extreme right of politics is correct when it asserts that Australia must protect Australian business and jobs.As you work through your notes, you are trying to decide on the best information you can present in the allotted half-hour.
Refer to A Foreign Alliance Talk (Scenario).You will close by giving a likely view of the future of the Australian and New Zealand Closer Economic Relations Agreement (CER)which suggests that ________.

A)it will likely disband by the year 2012
B)it is expected to merge with NAFTA by 2020
C)it increases the size of two relatively small domestic markets
D)it is likely to become a sub-set of ASEAN
E)it is of particular benefit to Australia's agricultural producers

Question 45

The process of exporting involves acquiring products made abroad and selling them domestically.

Question 46

In a short essay, describe three major regional trading alliances.

Question 47

Which of the following is NOT a member of the East African Community (EAC)?

A)Burundi
B)Rwanda
C)Democratic Republic of the Congo
D)Tanzania
E)Uganda

Question 48

Australia and New Zealand have traditionally produced highly tradeable products for the international market.

Question 49

The primary motivation for joining the European Union was ________.

A)to reduce the economic competitiveness with other parts of the world
B)to increase the political power of European countries in worldwide peace negotiations
C)to control tax exemptions within Europe and encourage inter-member cooperation in apprehending tax cheats
D)to reduce union organisation that had threatened to make some countries less competitive
E)to reassert their economic power against America and Japan

Question 50

Which of the following statements is true regarding the European Union?

A)Its membership, originally at 17 countries, has shrunk to its present 10 countries.
B)19 of the EU countries are currently using the euro.
C)Other European countries are avoiding relationships with the EU.
D)Though some progress has been made, the EU has basically been a failure.
E)The EU is seeking to discourage trade.

Question 51

Scenario-based questions: A Foreign Alliance Talk
As manager of the international department for your company, you have been asked by the local Chamber of Commerce to deliver a speech on 'foreign trade'.You are requested to include the EU, ASEAN because many members believe that the extreme right of politics is correct when it asserts that Australia must protect Australian business and jobs.As you work through your notes, you are trying to decide on the best information you can present in the allotted half-hour.
Refer to A Foreign Alliance Talk (Scenario).You should also mention that Europe comprises the largest - and still growing - economic market.Originally, there were ________ members in the EU and now there are ________.

A)4; 7
B)21; 35
C)12; 28
D)12; 7
E)15; 50

Question 52

Scenario-based questions: A Foreign Alliance Talk
As manager of the international department for your company, you have been asked by the local Chamber of Commerce to deliver a speech on 'foreign trade'.You are requested to include the EU, ASEAN because many members believe that the extreme right of politics is correct when it asserts that Australia must protect Australian business and jobs.As you work through your notes, you are trying to decide on the best information you can present in the allotted half-hour.
Refer to A Foreign Alliance Talk (Scenario).Latin American nations are clamouring to become part of free trade blocs.Such a free trade bloc is known as the Southern Common Market or ____________.

A)TAFTA
B)Mercosur
C)ASEAN
D)SAFTA
E)BAPUB

Question 53

Multinational corporations maintain operations in multiple countries.

Question 54

The single European Union (EU)currency is called the ________.

A)franc
B)franc-mark
C)pound
D)euro
E)EUC

Question 55

Multinational corporations became commonplace in the mid-1960s.

Question 56

The trading bloc made of Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Cambodia, Laos and Myanmar is ________.

A)NAFTA
B)EU
C)TAFTA
D)ASEAN
E)Mercosur

Question 57

Scenario-based questions: A Foreign Alliance Talk
As manager of the international department for your company, you have been asked by the local Chamber of Commerce to deliver a speech on 'foreign trade'.You are requested to include the EU, ASEAN because many members believe that the extreme right of politics is correct when it asserts that Australia must protect Australian business and jobs.As you work through your notes, you are trying to decide on the best information you can present in the allotted half-hour.
Refer to A Foreign Alliance Talk (Scenario).One issue you must cover is the European Union, which started in late 1992, and today united more than a half billion people of _____ nations, including France, Denmark, Austria and others.

A)100
B)20
C)34
D)38
E)28

Question 58

Scenario-based questions: A Foreign Alliance Talk
As manager of the international department for your company, you have been asked by the local Chamber of Commerce to deliver a speech on 'foreign trade'.You are requested to include the EU, ASEAN because many members believe that the extreme right of politics is correct when it asserts that Australia must protect Australian business and jobs.As you work through your notes, you are trying to decide on the best information you can present in the allotted half-hour.
Refer to A Foreign Alliance Talk (Scenario).One of the hottest topics of your talk will be ASEAN, an issue that has the attention of the local business community.How did the GFC affect ASEAN?

A)Australia, China, Japan, South Korea, India and New Zealand have joined the alliance as a result of the GFC.
B)It has led to free trade among all ASEAN members.
C)The adverse effects on countries in the region have created more interest in integrating ASEAN members.
D)The GFC had no impact on ASEAN members, and they are now the second largest trading block in the world.
E)The economic impact was significant.And the alliance is not expected to last.

Question 59

Transnational corporations run their business from their home country.

Question 60

In one of the early stages of an organisation going international, managers may enter international markets by license or franchise to another firm the right to use the organisation's brand name, technology or product specifications.

Question 61

Which of the following is NOT a feature of a multidomestic corporation?

A)Decision making takes place at the local level.
B)Nationals are typically hired to run operations in each country.
C)Marketing strategies are tailored to each country's culture.
D)Product strategies are tailored to each country's culture.
E)Products are manufactured only in the local country.

Question 62

When a company expands internationally, importing and exporting represent a more significant global investment than which of the following?

A)licensing
B)franchising
C)global sourcing
D)strategic alliance
E)joint ventures

Question 63

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

A)exporting its products to other countries
B)cross-culturally training its managers
C)establishing strategic alliances with partners
D)licensing another firm to use its brand name
E)global sourcing for materials and labour

Question 64

The ________ organisation approaches global business from the geocentric attitude.

A)multinational
B)transnational
C)polycentric
D)regional
E)multidomestic

Question 65

Which of the following is a basic definition of a multinational corporation?

A)a company that maintains significant operations in at least two different countries
B)a company that maintains significant operations in at least two different countries and has multiple home bases
C)an international company that maintains operations in multiple countries
D)a company that does business and pays taxes in at least two countries
E)a transnational or borderless organisation but not a multidomestic corporation

Question 66

Which of the following type of international company reflects the polycentric attitude?

A)multidomestic
B)transnational
C)polycentric
D)regional
E)global company

Question 67

Joint ventures are also termed ________.

A)licenses
B)franchises
C)foreign subsidiaries
D)subsidiaries
E)strategic alliances

Question 68

Scenario-based questions: First Visit Abroad
Bill Sanderson is in the air over the Middle East and is excited about his first European business trip.His goal is to scout out potential locations and basically provide input as to how the company should proceed with expanding abroad.There are many options, including maintaining the business' head office in Australia and sending over company representatives when necessary or developing a separate company in Europe and hiring locals as managers.In any case, he is confident about this trip but is somewhat concerned about the strange habits and foreign languages.(If only they would just speak English like everyone else!)
Refer to First Visit Abroad (Scenario).If Bill's company decides to open a completely new operation in Germany, tailoring the company to local customs and marketing strategies and hiring local managers, they would be considered ________.

A)a multidomestic corporation
B)an international company
C)a regional trade alliance
D)a borderless organisation
E)a global business alliance

Question 69

In an attempt to extend international activity, a company might export and import more.These steps usually require ________.

A)minimal investment and minimal risk
B)conducting business in a polycentric manner
C)the establishment of strategic alliances
D)franchising agreements
E)a large injection of capital

Question 70

According to the textbook, the ________ approaches global business from a polycentric attitude.

A)multinational corporation
B)transnational corporation
C)polycentric corporation
D)borderless corporation
E)multidomestic organisation

Question 71

A domestic and a foreign firm sharing the cost of developing new products or building production facilities in a foreign country is called a ________.

A)franchising agreement
B)joint venture
C)foreign subsidiary
D)brokering agreement
E)production agreement

Question 72

Scenario-based questions: First Visit Abroad
Bill Sanderson is in the air over the Middle East and is excited about his first European business trip.His goal is to scout out potential locations and basically provide input as to how the company should proceed with expanding abroad.There are many options, including maintaining the business' head office in Australia and sending over company representatives when necessary or developing a separate company in Europe and hiring locals as managers.In any case, he is confident about this trip but is somewhat concerned about the strange habits and foreign languages.(If only they would just speak English like everyone else!)
Refer to First Visit Abroad (Scenario).If Bill's company decided to open another company in France but maintain its management and other decisions in Australia, it would be considered ________.

A)a transnational corporation
B)an international company
C)a regional trade alliance
D)a multidomestic corporation
E)a global company

Question 73

Multinational Corporations (MNCs)have only become commonplace since approximately what date?

A)mid-1960s
B)mid-1970s
C)1945
D)mid-1980s
E)1990

Question 74

According to the textbook, most organisations start doing business globally by ________.

A)exporting and importing
B)licensing and franchising
C)strategic alliances
D)joint ventures
E)global sourcing

Question 75

Which of the following would most likely occur last in an organisation's global evolution?

A)cross-cultural training of the company's managers
B)giving a foreign organisation the right to use its name and operating methods
C)sending domestic employees on regular foreign business trips
D)hiring foreign brokers to represent the organisation's product line
E)creating a joint venture with suppliers around the globe

Question 76

International businesses have been around since about what date?

A)the 15th century
B)the 17th century
C)the 19th century
D)the 20th century
E)about 1955

Question 77

An early, initial stage of a company going international is called 'global sourcing', which means ________.

A)exporting its products to other countries
B)cross-culturally training its managers
C)hiring foreign brokers to represent the organisation's product line
D)sending domestic employees on regular foreign business trips
E)purchasing cheaper materials or labour from around the world

Question 78

Which of the following is the basic difference between multidomestic corporations and global companies?

A)Multidomestic corporations typically do business with more countries than global companies.
B)Global companies are run by the parent company but must be owned by a local, national company.
C)Decision making in multidomestic corporations takes place locally rather than from the home country.
D)Multidomestic corporations pay more in taxes than transnational corporations.
E)There is basically no difference between the two forms of business.

Question 79

Multidomestic corporations are known for ________.

A)ethnocentric attitudes
B)polycentric attitudes
C)centralising management and other decisions in the home country
D)multi-centric attitudes
E)having their holdings in one country

Question 80

Scenario-based questions: First Visit Abroad
Bill Sanderson is in the air over the Middle East and is excited about his first European business trip.His goal is to scout out potential locations and basically provide input as to how the company should proceed with expanding abroad.There are many options, including maintaining the business' head office in Australia and sending over company representatives when necessary or developing a separate company in Europe and hiring locals as managers.In any case, he is confident about this trip but is somewhat concerned about the strange habits and foreign languages.(If only they would just speak English like everyone else!)
Refer to First Visit Abroad (Scenario).If Bill's company eliminated country-designated locations and reorganised based on industry groups, it would best be considered a ________.

A)borderless organisation
B)multidomestic corporation
C)global business alliance
D)multinational corporation
E)regional trade alliance