Question 1

Gary is an English national working for an American company situated in London. He is a(n) ________.

Accepted Answer

A)  host-country national 
B)  third-country national 
C)  repatriate 
D)  expatriate 
E)  immigrant

Question 2

SNL manufactures and sells customized shoes for people with special needs. The company caters mostly to customers within the U.S., though it occasionally sends products to overseas customers. The company is very eco-friendly, and takes pride in sourcing all its raw materials locally. According to the information, SNL is a(n) ________ company.

Accepted Answer

A)  transnational 
B)  global 
C)  multinational 
D)  domestic 
E)  international

Question 3

Countries that highly promote ________ have citizenry that tends to emphasize, expect, and accept more autocratic than democratic leadership.

Accepted Answer

A)  short-term orientation 
B)  individualism 
C)  power distance 
D)  masculinity 
E)  collectivism

Question 4

Which of the following attitudes is generally thought to be the most appropriate for mangers in multinational corporations?

Accepted Answer

A)  geocentric 
B)  ethnocentric 
C)  polycentric 
D)  egocentric 
E)  regiocentric

Question 5

A company that exports products to a foreign country and establishes sales organizations abroad is considered to be a domestic company.

Accepted Answer

A) True 
 B)False

Question 6

The European Union is a(n) ________ established dedicated to facilitating trade among member nations.

Accepted Answer

A)  international joint venture 
B)  license agreement 
C)  international market agreement 
D)  transnational organization 
E)  polycentric organization

Question 7

Organization members who are citizens of one country and work in another country for an organization headquartered in still another country are known as ________.

Accepted Answer

A)  expatriates 
B)  host-country nationals 
C)  third-country nationals 
D)  repatriates 
E)  naturalized citizens

Question 8

Canada, the People's Republic of China, Indonesia, and the United States are all members of the Asian-Pacific Economic Cooperation. This agreement is an example of a(n) ________ agreement.

Accepted Answer

A)  international license 
B)  international market 
C)  international framework 
D)  international import 
E)  international export

Question 9

What can managers do to ensure that management action taken across national borders is ethical?

Accepted Answer

The answer of What can managers do to ensure that...

Question 10

________ in multinational corporations requires that standards be set, performance be measured and compared to standards, and corrective action be taken if necessary.

Accepted Answer

A)  Planning 
B)  Organizing 
C)  Leading 
D)  Controlling 
E)  Influencing

Question 11

Discuss the three types of organizational members found in multinational corporations.

Accepted Answer

The answer of Discuss the three types of organizational members...

Question 12

EasyWear Apparels is based in the U.S. and recently established a manufacturing unit in Montreal and a manufacturing unit and retail outlet in Leeds in the U.K. Which of the following scenarios mirrors EasyWear's situation?

Accepted Answer

A)  An automobile company headquartered in Austria starts production for its German market in Berlin. 
B)  A cell phone producer based in Finland starts selling its products in India. 
C)  Dell Computers has established sales organizations in major cities all over the world. 
D)  Fiona, an Italian shoe manufacturer, allows a firm in Kuala Lumpur the use of its patterns. 
E)  McDonald's has a standing contract with Coca Cola to sell its beverages in all its outlets.

Question 13

According to Hofstede, what are the five basic dimensions of culture?

Accepted Answer

The answer of According to Hofstede, what are the five...

Question 14

The manager of a multinational corporation in the U.S. thinks that following U.S. management practices is best for its operations in New Zealand because U.S. management practices are better than the management practices prevalent in New Zealand. This manager is said to have a(n) ________ attitude.

Accepted Answer

A)  ethnocentric 
B)  polycentric 
C)  geocentric 
D)  xenocentric 
E)  gynocentric

Question 15

A multinational corporation is a company that is primarily based in one country but has continuing transactions in other countries.

Accepted Answer

A) True 
 B)False

Question 16

Organization ________ is the sum of all established relationships among resources within an organization.

Accepted Answer

A)  structure 
B)  overview 
C)  mission 
D)  path 
E)  purpose

Question 17

When a United States computer manufacturer sells a shipment of 40 computers to a retailer in Germany, the computer manufacturer is engaged in the process of ________.

Accepted Answer

A)  importing 
B)  exporting 
C)  developing a license agreement 
D)  direct investing 
E)  repatriating

Question 18

Explain the three basic managerial attitudes toward the operation of multinational corporations. What are their advantages and disadvantages?

Accepted Answer

The answer of Explain the three basic managerial attitudes toward...

Question 19

Evelyn has worked for the Boston branch of Clarity Systems for the past ten years. She is being transferred to head the Madrid office of her company. Since the transfer was a hurried one, there was no time to train Evelyn in the specifics of doing business in Spanish culture. As soon as she arrived in Madrid, Evelyn had to conduct negotiations for the renewal of several supplier contracts. One of the suppliers gave her an expensive watch, saying that it was a custom of the country to give business associates gifts. Evelyn is unsure whether she should accept the gift as it seems like a bribe. Which of the following ethical guidelines will help Evelyn determine whether or not to accept the gift?

Accepted Answer

A)  respecting core human rights 
B)  respecting local traditions 
C)  determining right from wrong by examining context 
D)  using ethnocentrism 
E)  increasing power distance

Question 20

STL began as a manufacturer and retailer of customized apparel and accessories. Customers could choose their specifications online, and STL would produce and deliver the products to customers' homes. Initially, its market was limited to the U.S., but the company has begun to receive enquiries from overseas customers from many other countries. However, STL does not have the financial resources or the confidence to set up operations in other countries. Which methods could the CEO use to meet this overseas demand, taking into account the company's weaknesses?

Accepted Answer

The answer of STL began as a manufacturer and retailer...

Exam 5: Managing in the Global Arena