Deck 4: Global Management: Managing Across Borders

Question 1

Dawn grew up helping her father work on cars in his auto repair shop and developed into an excellent auto technician.Because of stereotypes regarding women in this field,she is interested in finding a shop that minimizes gender discrimination and role inequalities.Dawn wants to work for a company that highly values gender egalitarianism.

Answer 1

True

Question 2

Over the last two years,an American computer manufacturer has partnered with a technology organization in Japan to develop and produce computers and printers.The partnership benefits both organizations and is an example of countertrading.

Answer 2

False

Question 3

Which of the following is NOT a good piece of advice for those who travel for business?

A)Understand that face-to-face meetings are crucial for developing and maintaining business relationships.
B)Technology-based meetings conducted through videoconferencing are often as effective as expensive,time-consuming domestic or business travel.
C)Expect that business practices will vary widely from country to country,and learn to work within cultural expectations.
D)Before traveling to another country,it is a good idea to follow the news relating to the region,and also to have at least a basic understanding of its history.
E)Use downtime during business travel to network and make new contacts.

Answer 3

B

Question 4

Great systems of _____ are the hallmark of great civilizations.

A)laws
B)diversity
C)leadership
D)communications
E)manufacturing

Question 5

Two managers from an Electronics Mart were talking to Ty,their district manager,about Harriet,the unpopular store manager.Susan,the assistant manager,said,"I believe I speak for other managers and employees when I say that Harriet acts like she knows it all.We all feel that Harriet does not listen to any of us because she always thinks her way is right and does not want to consider any other opinion." Harriet is an example of a geocentric or parochial manager.

Question 6

The "most favored nation" trading status describes a condition in which a country grants other countries favorable trading treatment,such as the reduction of import duties.

Question 7

Globalization is the trend

A)of the world economy becoming a less dependent system.
B)of the world economy adding more independent markets.
C)toward one world language and culture.
D)of the world economy toward becoming a more interdependent system.
E)toward one world economy and banking system.

Question 8

Greg,a manager at the Rome,Italy,store of an American-owned clothing company,understands the differences and similarities between American and Italian customers,customs,culture,and practices.As a result,Greg uses his understanding of Italian culture,tastes,and business practices to help him market his products to Italian customers in Rome-and he uses his understanding of American culture to sell his products to American tourists who are visiting Rome.Greg is an example of a geocentric manager.

Question 9

There are two types of tariffs: a revenue tariff,designed simply to raise money for the government;and a protective tariff,which raises the price of imported goods to make the prices of domestic products more competitive.

Question 10

Joe,who is from Michigan,is transferring to the Paris office.As one who has studied the effects of globalization on business,Joe understands that it crucial to

A)learn to speak French.
B)understand the local culture.
C)work with his customers primarily through Skype or other apps.
D)manage his Parisian employees exactly as he would manage his U.S.employees.
E)be less concerned with profit and more concerned with philanthropy.

Question 11

Last week Paul,CEO of Quality Furniture in South Carolina,traveled to Europe to visit customers.While overseas,Paul checked his e-mail daily and showed his company's website to customers,explaining how the website will help them place orders and receive merchandise more quickly.After visiting the last customer Friday morning,Paul was able to return to the corporate office in South Carolina to meet with his board of directors that night._______ is the "shrinking" of time and space with air travel and electronic media.

A)the intranet
B)synergy
C)the small-world philosophy
D)e-commerce
E)the global village

Question 12

While in Italy,Tony was able to communicate important information to George,his business partner,via e-mail.Later that day,Tony remarked to George about how helpful it was that he was able to return to their office in New York in less than nine hours.The "global village" refers to this "shrinking" of time and space as air travel and the electronic media have made it easier for people around the globe to communicate with one another.

Question 13

Philippe is from the Mediterranean coast of Greece and Sasha is from Iran.In their grocery store,this married couple is accustomed to focusing on one task at a time rather than multitasking.Philippe and Sasha work on a system of polychronic time.

Question 14

Before you travel and conduct business abroad,spend some time learning about the way business is conducted in foreign countries.For example,in Asia and the Middle East,personal relationships are crucial to getting things done,so you should plan to engage in small talk and to avoid business talk during after-hours outings.

Question 15

In 1999,the top exporting nation was the United States,but in 2015 the world's top exporting nation was China.

Question 16

A greenfield venture is a strategic alliance with individuals and organizations in developing nations;the venture's goals are to assist,educate,and share the risks and rewards of starting a new nonprofit organization in the developing country.

Question 17

NAFTA is a trading bloc consisting of the United States,Canada,Panama,and Mexico.

Question 18

After a morning of global cultural training,Marie,the vice president of marketing,is having lunch with Ann,who will be managing the company's new office in South Korea.Marie tells Ann,"There are cultural differences between the United States and South Korea that will affect the success of our office.For example,I suggest giving a couple of cans of Spam to your larger customers,because Spam is considered elegant in South Korea." Marie's advice to Ann is good because it takes into account the many kinds of cultural differences between the United States and other countries.

Question 19

Susan,a teacher,is interested in helping children in other countries learn how to read.She has formed an international nonprofit organization,Read to the World,whose employees travel to Africa to donate books and work in schools as tutors.Read to the World is an example of a multinational corporation.

Question 20

Sally has seen such great interest in her scented candles that she has decided to start her own small business selling them.Sally's company can use the Internet and the World Wide Web to operate globally,helping her get a global business started more easily because she can put products on a website and sell worldwide.So,in a sense,the Internet wipes out the former advantages of distribution and scope that large companies used to have.

Question 21

Tom,who owns a successful business with two locations and a few international clients,was approached by a large organization about dramatically expanding his company.Tom later told his wife that he is happy with his success,but he wants to stay small because if he decides to add new products,small companies

A)take more time to start new endeavors.
B)typically maneuver slowly with new ideas.
C)can get started more easily and maneuver faster.
D)tend not to change due to inexperienced management.
E)can adjust more easily to capital shortages.

Question 22

Alice's Pasta Kitchen makes quality pasta and sells its products to customers in other countries.Alice's Pasta Kitchen is ____ its products.

A)bartering
B)countermarketing
C)exporting
D)dumping
E)importing

Question 23

Many companies are interested in expanding globally in order to

A)gain access to supplies,new markets,and lower labor costs.
B)gain access to natural resources,new markets,and a diverse workforce.
C)implement tariffs and import quotas.
D)utilize export embargoes to increase business.
E)increase synergy and diversity.

Question 24

Shoes International is a global nonprofit organization that works with schools and various companies to donate shoes to poor children throughout the world.Shoes International is an example of a

A)multinational corporation.
B)conglomerate.
C)foreign firm.
D)philanthropic corporation.
E)multinational organization.

Question 25

Quality Air,a company that builds airplanes,typically orders parts for its airplanes from other companies._______ is the practice Quality Air is using.

A)Countertrading
B)Bartering
C)Trading
D)Outsourcing
E)Diversifying

Question 26

George,a regional manager for a global corporation,is meeting with several upset managers from the Rome plant about Steve,who is originally from Florida but moved to Italy to manage the Rome facility.Phillipe,the assistant manager,tells George,"We all feel that Steve sees things only one way-his-and very seldom considers our perspective on things." Steve is employing a ______ management style.

A)synergy-based
B)ecocentric
C)geocentric
D)polycentric
E)parochial

Question 27

_____ is another word for ethnocentrism.

A)Geocentrism
B)Ecocentrism
C)Parochialism
D)Open-mindedness
E)A flexible management style

Question 28

Tops Burger,a _____________ based in Amarillo,Texas,has restaurants in 25 countries.

A)multinational corporation
B)conglomerate
C)multinational organization
D)foreign partner
E)foreign firm

Question 29

Maria,the vice president of sales for an international organization,believes that employees in her foreign offices understand best how to handle the personnel and practices in their offices.So when the corporate HR manager approached Maria about reprimanding Robert,a native Parisian who is the Paris office manager,for not doing things according to corporate policy,Maria backed Robert and said,"I believe that the home office should leave Robert alone because he best understands the local culture." Maria is a(n)___ manager.

A)ethnocentric
B)global
C)native
D)polycentric
E)parochial

Question 30

Dominique owns an international grocery store,the World Food Market,where customers can purchase foods and canned goods from other countries.World Food Market is an example of a company that

A)exports.
B)globalizes.
C)inputs.
D)imports.
E)countertrades.

Question 31

Technology philosopher Nicholas Negroponte proposed that the global market driven by electronic information

A)"causes products to become more expensive."
B)"increases diversity within organizations but results in culture shock."
C)"results in new laws but less synergy and less ethical behavior."
D)"causes an increase in the types of goods available but decreases in product quality."
E)"forces things to get bigger and smaller at the same time."

Question 32

Ethnocentric managers believe that their native country,culture,language,and behavior

A)are equal to all other cultures.
B)are hurtful to others.
C)need to be changed.
D)are outdated.
E)are superior to all others.

Question 33

According to Rosabeth Moss Kantor of the Harvard Business School,which three events of the 1980s paved the way for the global economy?

A)The Berlin Wall came down,countries worldwide opened their economies to foreign investors,and there was a worldwide trend of governments increasingly regulating their economies.
B)The Berlin Wall was built,Asian countries formed their own stock market,and NAFTA was implemented.
C)The Berlin Wall came down,Asian countries opened their economies to foreign investors,and there was a worldwide trend of governments deregulating their economies.
D)The governments of China and India implemented certain aspects of capitalism,Nixon opened China to international trade,and the value of the U.S.dollar skyrocketed.
E)The Berlin Wall came down,NAFTA and CAFTA were implemented,and the Dow Jones Industrial Average hit 10
,000.

Question 34

John,a construction manager,has been having problems finding quality employees in some of the company's foreign offices.While speaking with his attorney,Alisha,he mentioned that "in our locations overseas,many of our good employees have been quitting,and as you know,we have numerous lawsuits over personnel policies." Alisha explained that historically,problems with employee turnover and lawsuits are a result of ____ policies.

A)geocentric
B)ethnocentric
C)synergy
D)MBO
E)polycentric

Question 35

Countertrading is ___ goods for goods.

A)outsourcing
B)sourcing
C)bartering
D)selling
E)licensing

Question 36

Using ________,Don's Carpet installed carpet at no cost for City Office Supply,in exchange for $1,000 of office supplies.

A)outsourcing
B)sourcing
C)inputting
D)countertrading
E)importing

Question 37

Hannah,an engineer for an oil company,is interested in working overseas at this stage of her life because she knows that foreign work experience demonstrates ____ to potential employers.

A)independence,resourcefulness,and discipline
B)good management skills
C)independence and strong leadership skills
D)independence,resourcefulness,and entrepreneurship
E)discipline and a strong will

Question 38

______ are Mexican manufacturing plants with low labor costs that give special privileges to their American owners in return for employing Mexican citizens.

A)Diversedoras
B)Barteristas
C)Globalists
D)Internationaladoras
E)Maquiladoras

Question 39

Don,who owns an investment firm with customers worldwide,has witnessed how dangerous global economic interdependency can be.During a lunch meeting he mentioned to a customer,"In my opinion,______________ have been two negative effects of global economic interdependency for the United States."

A)other countries stealing U.S.technology and the loss of well-paying jobs in the United States
B)a huge surplus of funds from global investments flowing into the United States and huge cost increases
C)lack of global investments flowing into the United States and lower-quality goods being produced domestically
D)more expensive goods being produced domestically and bigger markets for American imports
E)fewer organizations utilizing MBO and poorer-quality goods imported from abroad

Question 40

Roberto,the vice president of marketing,is talking to Francis,a sales manager in a foreign office,about several local situations that Francis's reps are facing in their territory.Roberto tells Francis that he believes there are differences and similarities between home and foreign personnel and practices,and that Francis should use whatever techniques are most effective.Roberto is a(n)____ manager.

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

Question 41

Which of the following is an example of licensing?

A)When a company allows another company to pay it a fee to train its employees.
B)When a company allows a foreign company to pay it a fee to make or distribute the first company's product or service.
C)When a company pays a competitor a fee to stop the competitor from selling its products in the company's territory.
D)When a company develops a strategic plan for another organization.
E)When a company barters goods for goods in lieu of a monetary payment.

Question 42

Donald is the owner of The Party Hat,a U.S.event-planning company.He plans to open an event-planning company,Events & Adventures,in London.Events & Adventures will be totally owned and controlled by The Party Hat,which makes Events & Adventures a ____ of The Party Hat.

A)joint venture
B)total investment agreement
C)strategic alliance
D)wholly-owned subsidiary
E)maquiladora

Question 43

An import quota is a(n)

A)trade barrier.
B)embargo.
C)sanction.
D)export fee.
E)type of dumping.

Question 44

The United States uses government regulations,such as tariffs,embargoes,and import quotas,to limit the import of goods and services and to protect U.S.industries against foreign competition.______ is the use of these regulations.

A)Domestic protectionism
B)Blocking
C)Trade protectionism
D)Dumping
E)Export protectionism

Question 45

Luxere Hotels International,an American company,sells the rights to other hospitality companies globally to open hotels with the Luxere name for a fee and a share of the profit,in return for using Luxere's brand name and a package of materials and services.Luxere is engaged in

A)franchising.
B)importing.
C)offshoring.
D)exporting.
E)countertrading.

Question 46

The World Bank

A)finances worldwide mergers.
B)provides low-interest loans for improvements in developing nations.
C)provides banking operations for multinational organizations.
D)provides loans to communist nations.
E)monitors banks and credit unions globally.

Question 47

Shrimpers in South Louisiana have accused China of selling shrimp in the United States at a lower price than U.S.suppliers.The goal of the Chinese,they argue,is to drive down the price of U.S.shrimp.The U.S.shrimpers are accusing the Chinese of

A)outsourcing.
B)applying import quotas.
C)trade protectionism.
D)dumping.
E)establishing an embargo.

Question 48

Technology Experts is a U.S.company that specializes in IT research.It has formed a joint venture with Processor Inc. ,a Canadian organization that has a reputation for producing quality PCs.The two companies will work together to market laptops in China,sharing the risks and rewards of starting the new enterprise together.Technology Experts and Processor Inc.are partners in a(n)

A)strategic alliance.
B)global strategy.
C)export strategy.
D)import strategy.
E)franchising strategy.

Question 49

Prior to 1990,the United States imposed a tax,known as a(n)________,on automobiles imported from Mexico.

A)licensing fee
B)tariff
C)embargo
D)import quota
E)export quota

Question 50

NAFTA and the EU are both

A)greenfield ventures.
B)world banks.
C)terrorist-monitoring associations.
D)monetary funds.
E)trading blocs.

Question 51

The WTO

A)oversees mergers between large multinational corporations.
B)monitors business start-ups globally.
C)monitors and enforces trade agreements.
D)ensures that multinational organizations are behaving ethically.
E)keeps an eye on suspected terrorists.

Question 52

According to the watchdog group Public Citizen,NAFTA is responsible for

A)a decrease in illegal immigration into the United States.
B)the loss of 845,000 U.S.jobs.
C)a higher standard of living among its trading partners.
D)closing the wage gap between Mexico and the United States.
E)the formation of the IMF and World Bank.

Question 53

________ is prevented by quotas.

A)Outsourcing
B)Tariffs
C)Exporting
D)An embargo
E)Dumping

Question 54

The United States limits the amount of cheese purchased from other countries;this is a(n)____ policy .

A)export quota
B)import dump
C)import quota
D)trade embargo
E)import tariff

Question 55

Free trade is the

A)movement of customers between nations that do not have trade embargoes.
B)policy of cost-free exchange of goods.
C)bartering of goods or services locally or globally.
D)bartering or sale of goods without taxes.
E)movement of products between countries without political or economic obstruction.

Question 56

Recent protests against World Bank operations involve complaints that the World Bank (1)supports countries that permit sweatshop labor or restrict religious freedom,and (2)

A)financially assists al Qaeda-linked governments.
B)encourages fraudulent lending practices in Latin America.
C)ignores major human-rights violations in western Africa.
D)institutes an unfavorable balance of payments in developing nations.
E)finances projects that could damage the ecosystem.
In recent years,the World Bank has been the target of demonstrations.Protesters believe it finances projects that could damage the ecosystem,such as the Three Gorges Dam on China's Yangtze River.Others complain that the World Bank supports countries that permit low-paying sweatshops or that suppress religious freedom.

Question 57

The IMF has

A)helped support some weaker European countries during the recent financial crisis.
B)been very helpful in monitoring international terrorists.
C)ignored the cause of income inequality.
D)provided significant funding for business start-ups globally.
E)provided support to global terrorists.

Question 58

Sometimes a country's laws forbid foreigners from owning a business in the nation.In the presence of such laws,a(n)_____ is one way for an American company to have a presence in that foreign country.

A)export agreement
B)MBO pact
C)import agreement
D)bartering union
E)joint venture

Question 59

A tax on automobiles imported into the United States that raises prices on imported vehicles to make the price of cars produced in the United States more competitive is a(n)______;a tax on all oil imported into the United States,which is implemented to raise money for the U.S.government,is a(n)

A)protective tariff;revenue tariff
B)revenue tariff;protective tariff
C)quota tariff;revenue tariff
D)embargo agreement;income tariff
E)import barrier;income tariff

Question 60

At one time,the United States used a(n)________ to prohibit the import of all products made in Cuba.

A)tariff
B)limit agreement
C)export ban
D)embargo
E)protective quota

Question 61

When planning a trip to France,Jim and his wife,both Americans,were concerned about how much they could afford to spend in Europe because sometimes the U.S.dollar will buy more goods and sometimes it will buy less,based on changing economic conditions.The ____ rate is the rate at which the currency of one area or country can be exchanged for the currency of another's.

A)fluctuation
B)dividend
C)exchange
D)transaction
E)international

Question 62

Susan,from California,arrived in Saudi Arabia and immediately noticed that the way Saudi men treat women is vastly different than the way men in the United States treat women.Susan was feeling uncomfortable and disoriented because she was experiencing

A)culture shock.
B)ethnocentrism.
C)reverse assimilation.
D)acculturation.
E)gender equality.

Question 63

According to the GLOBE project,in-group collectivism refers to

A)how much patriotism and loyalty people should have for their country.
B)the degree to which a society's members expect power to be unequally shared.
C)the extent that individuals are encouraged and rewarded for group loyalty versus pursuing individual goals.
D)the extent to which a society encourages investment in the future,as by planning and saving.
E)the extent to which people should take pride in being members of their family,circle of close friends,and work organization.

Question 64

Monochronic time is a

A)preference for multitasking.
B)desire to do as little as possible for a period of time.
C)time for the open discussion of problems or challenges.
D)time when little is accomplished.
E)preference for doing one thing at a time.

Question 65

Which of the following statements is FALSE?

A)The United States was the world's largest economy in
2014.
B)Global trade has helped lift hundreds of millions of Chinese out of poverty.
C)The presence of a few dominant companies in an industry makes it more difficult for entrepreneurs to start a business in that sector.
D)Around the world,consumers are showing a robust appetite for the sharing-based economy.
E)Most Americans use their mobile devices for getting directions or listening to music rather than making purchases.

Question 66

_______ is a trading bloc consisting of 28 trading partners in Europe.

A)The WTO
B)Mercosur
C)The European Union
D)The Eastern Union
E)The Atlantic-Mediterranean Union

Question 67

ASEAN is a(n)

A)trading bloc consisting of 10 countries in Asia.
B)association of American and Southeast Asian nations.
C)trading bloc consisting of 10 countries along the Atlantic Ocean.
D)worldwide banking association.
E)union of global nations that strives to bring world peace.

Question 68

The GLOBE project is an ongoing cross-cultural investigation of nine cultural dimensions involved in ___ processes.

A)family and relationship
B)leadership and organizational
C)MBO and planning
D)diversity and synergy
E)profit and cost-cutting

Question 69

______ is a government's seizure of a domestic or foreign company's assets.

A)Expropriation
B)Diversification
C)Nationalization
D)An embargo
E)Appropriation

Question 70

George owns an international grocery store in New Jersey,the Global Food Bazaar.He has benefited highly from the trading bloc that allows him to purchase food products from Central American nations at a nice discount.With many of his customers from Costa Rica,the Dominican Republic and Guatemala,he is particularly grateful for ______,a trading bloc.

A)APEC
B)CAFTA-DR
C)NAFTA
D)EU
E)Mercosur

Question 71

The United States granted most favored nation trading status to China,which means that

A)Chinese tourists pay lower sales taxes when they visit the United States.
B)the United States has promised to aid China in its counter-terrorist activities.
C)China receives favorable trading treatment,such as the reduction of import duties.
D)more Chinese immigrants are allowed to enter the United States.
E)China and the United States have agreed to place a trade embargo on certain nations in Southeast Asia.

Question 72

A nation's culture is

A)the shared set of beliefs,values,knowledge,and patterns of behavior common to its people.
B)synonymous with its religious beliefs.
C)a shared set of business traditions common to the nation.
D)its constitution and written codes of behavior.
E)the laws that are accepted as moral imperatives by most of the citizens.

Question 73

Greg,a geologist from Kansas who works for ExxonMobil,has decided to transfer to one of ExxonMobil's offices in Saudi Arabia.Greg is a(n)____ while living in Saudi Arabia,

A)globalist
B)internationalist
C)traitor
D)expatriate
E)migrator

Question 74

Tom and his fiancée Susan decided to have their wedding on a beach in Acapulco,Mexico.Local businesses provided most of the services for the wedding,such as the limousine and the catering services.Throughout the weekend of the wedding,the couple found that workers and limos arrived late;so did the priest who was performing the wedding.In response to the couple's frustration,the Mexican workers remarked,"Ustedes tienen que ser flexibles," which in English means "You have to be flexible with time." This attitude regarding time is

A)inflexible.
B)polychronic.
C)cultural.
D)monochronic.
E)one-dimensional.

Question 75

______ in a low-context culture.

A)E-mail is a very popular method of communicating
B)Citizens prefer to meet face-to-face rather than electronically
C)Shared meanings are derived primarily from written and spoken words
D)Meanings are derived primarily from situational cues
E)Life moves at a very slow pace

Question 76

The _____ is the law that makes it illegal for employees of U.S.companies to make "questionable" or "dubious" contributions to political decision makers in foreign nations.

A)Global Ethics Accord
B)Internationalist Agreement
C)PATRIOT Act
D)Expatriate Accord
E)Foreign Corrupt Practices Act

Question 77

According to the findings of the GLOBE project,the assertiveness dimension represents the extent to which a society values

A)power distance and sharing.
B)in-group collectivism and loyalty.
C)confrontation and competitiveness.
D)performance improvement and excellence.
E)altruism and caring.

Question 78

When communicating across cultures,the best strategy regarding language use is to

A)learn the local language.
B)assume that business is always conducted in English.
C)employ a translator.
D)rely on the goodwill and knowledge of others.
E)use a translation app or device.

Question 79

During global culture training for a group of employees who are being transferred to Egypt,Samira,the HR training manager,remarked that "in the Arab world,men often hold hands,which is meant to express

A)the acceptance of a business deal."
B)solidarity and friendship."
C)the acceptance of a future son-in-law into the family."
D)concentration and focus."
E)personal dominance."

Question 80

______ is the group of 21 Pacific Rim countries whose purpose is to improve economic and political ties,and to reduce tariffs and other trade barriers across the region.

A)PEC
B)ASEAN
C)EU
D)APEC
E)CAFTA