Chapter 3 - qna PDF

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CHAPTER 3 1) Americans tend to suffer from parochialism. Answer: TRUE

2) Managers with an ethnocentric attitude do not trust foreign employees with key decisions or technology. Answer: TRUE 3) Managers with a polycentric attitude tend to view every foreign operation as difficult and hard to understand. Answer: TRUE 4) The polycentric attitude is a world-oriented view focusing on using the best approaches and people from around the globe. Answer: FALSE 5) Norway is a member of the European Union. Answer: FALSE 6) When the twelve original members formed the European union in 1992, the primary motivation was to reassert the region's economic position against the United States and Japan. Answer: TRUE 7) Solidarity in the European Union is being undermined by protectionist pressures in some member countries. Answer: TRUE 8) The United States, Canada, and Mexico are parties to the North American Free Trade Association. TRUE 9) Mercosur is a trading group made up of 10 South American countries. Answer: TRUE 10) A transnational organization reflects an ethnocentric attitude. Answer: FALSE 11) Managers who want to get into a global market with minimal investment start with global sourcing. TRUE 12) The process of exporting involves acquiring products made abroad and selling them domestically. FALSE 13) Licensing and franchising are similar approaches involving one organization giving another organization the right to use its brand name, technology, or product specifications in return for a lump sum payment or a fee usually based on sales. Answer: TRUE 14) Licensing is primarily used by service organizations and franchising is primarily used by manufacturing organizations. Answer: FALSE 15) Strategic alliance is a partnership between an organization and a foreign company partner or partners in which both share resources and knowledge in developing new products or building production facilities. Answer: TRUE

16) Only when a country's political/legal environment is unstable or revolutionary is it of concern to managers. Answer: FALSE 17) The GLOBE framework for assessing cultures is similar to Hofstede's framework, but measures fewer dimensions. Answer: FALSE 18) Mexico is an example of a Collectivistic nation. Answer: TRUE 19) The United States is an example of a country with low power distance. Answer: TRUE 20) A high uncertainty avoidance society is threatened by ambiguity and experiences high levels of anxiety. Answer: TRUE 21) A global mind-set refers to attributes that allow a leader to be effective in cross-cultural environments. Answer: TRUE 22) Monolingualism is one sign that a nation suffers from ________. A) B) C) D)

parochialism ethnocentrism polycentrism geocentrism

23) Parochialism is a tendency to ________. A) think highly of the foreign country in which the organization is doing business B) focus on best approaches and people from around the globe C) view the world solely through one's own eyes and perspectives D) let employees in the host country figure out how best to do things 24) Bill Sanderson, a manager in a manufacturing firm in New York has a tendency to view the world only through his U.S.-based perspective. What can be deduced about his attitude? A) B) C) D)

He has an elitist attitude. He has a polycentric attitude. He has a parochialistic attitude. He has a geocentric attitude.

25) An ethnocentric attitude ________. A) prompts managers to have a global view and look for the best approaches and people regardless of origin. B) is the belief that the home country has the best work approaches and practices C) is the view that employees in the host country know the best work approaches and practices

CHAPTER 3 D) gives a manager a much broader understanding of what it takes to manage in a global environment

26) A manager who wishes to be successful in international business should avoid a(n) _______attitude. A) B) C) D)

multicultural multiracial ethnocentric geocentric

27) A(n) _____ attitude is characterized by parochialism. A) B) C) D)

geocentric acculturated multilinguistic ethnocentric

28) Managers with a(n) ________ attitude view every foreign operation as different and hard to understand. A) B) C) D)

geocentric polycentric ethnocentric regiocentric

29) A(n) ________ attitude is the view that employees in the host country know the best practices for running their operations. A) B) C) D)

ethnocentric polycentric geocentric regiocentric

30) In today's global environment, managers must have a(n) ________ attitude in order to be successful. A) B) C) D)

ethnocentric parochial bigoted geocentric

31) Which of the following countries is a member of the European Union? A) B) C) D)

Ireland Iceland Norway Switzerland

2) The ________ was formed by twelve original members with the primary motivation of reasserting the region's economic position against the United States and Japan. A) African Union B) European Union

C) Central America Free Trade Agreement D) Association of South-East Asian Nations 33) The single European Union currency is called the___. A) B) C) D)

krone krona pound euro

34) What is the primary reason that the intensifying economic crisis in Europe threatens to impact the decisions of global managers in the United States and throughout the world? A) The massive debt in Greece has caused Europe to slide into a new recession. B) New measures by the European Commission to oversee banks and to monitor national budgets have been met with resistance by euro zone members. C) The euro zone is a larger economic unit than the United States or China and is a major source of world demand for goods and services. D) The inability to trim benefits and free up labor markets prevents the region from spurring any significant growth over the next decade....