Management, 14e (Robbins/Coulter)
Chapter 4 Managing in a Global Environment
1) Employers in the global marketplace look for which one of the following?
A) a college degree in multicultural awareness
B) critical thinking skills
C) multi-lingual skills
D) respect for differences
2) The advantages of operating globally include ________.
A) higher profits
B) higher employee satisfaction
C) higher stock trading prices
D) lower employee turnover
3) American business students may be at a disadvantage because ________.
A) competition from foreign-born students makes it more difficult to be accepted at the better
universities
B) scholarships are being awarded to undocumented students
C) many colleges and universities no longer require courses in foreign language
D) tuition costs have risen beyond the reach of most high school graduates
4) Only speaking one language is one sign that a nation suffers from ________.
A) parochialism
B) ethnocentrism
C) polycentrism
D) geocentrism
5) 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
6) 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) He has an elitist attitude.
B) He has a polycentric attitude.
C) He has a parochialistic attitude.
D) He has a geocentric attitude.
7) 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
D) gives a manager a much broader understanding of what it takes to manage in a global
environment
8) A(n) ________ attitude is characterized by parochialism.
A) geocentric
B) acculturated
C) multilinguistic
D) ethnocentric
9) While talking with her advisor at the university, Jane deduces that she has a(n) ________
attitude, as she has never traveled abroad and relates well only to people from her home country.
A) regiocentric
B) polycentric
C) ethnocentric
D) geocentric
10) An ethnocentric attitude stems from ________.
A) nationalism
B) parochialism
C) polycentrism
D) geocentrism
11) Melanie joined an international student association in order to better understand the views of
students from other countries. She is trying to become more ________ in her attitude.
A) parochialistic
B) polycentric
C) ethnocentric
D) geocentric
12) A manager who wishes to be successful in international business should avoid a(n) ________
attitude.
A) multicultural
B) multiracial
C) ethnocentric
D) geocentric
13) Managers with a(n) ________ attitude view every foreign operation as different and hard to
understand.
A) geocentric
B) polycentric
C) ethnocentric
D) regiocentric
14) A(n) ________ attitude is the view that employees in the host country know the best
practices for running their operations.
A) ethnocentric
B) polycentric
C) geocentric
D) regiocentric
15) Samanex Corporation maintains production facilities in 13 different countries on three
continents. Each facility is managed by a native of the country where it is located. This practice
is indicative of a(n) ________ attitude.
A) ethnocentric
B) geocentric
C) polycentric
D) multicentric
16) In today’s global environment, managers must have a(n) ________ attitude to be successful.
A) ethnocentric
B) parochial
C) polycentric
D) geocentric
17) Americans tend to suffer from parochialism.
18) Managers with an ethnocentric attitude do not trust foreign employees with key decisions or
technology.
19) Managers with a polycentric attitude tend to view every foreign operation as different and
hard to understand.
20) The polycentric attitude is a world-oriented view focusing on using the best approaches and
people from around the globe.
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21) Define parochialism. Discuss why parochialism is a problem for U.S. managers and discuss
reasons why it is important to overcome parochialism in today’s business environment.
22) List and discuss the three attitudes managers might have toward international business.
23) The ________ was formed by twelve member countries 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
24) The single European Union currency is called the ________.
A) deutchmark
B) krona
C) pound
D) euro
25) The World Trade Organization was formed in the year ________.
A) 1995
B) 1967
C) 1971
D) 1983
26) Heinrich, a purchaser for an optics company in Germany, must place an order for materials
for use in its production process. He is most likely to order from a company ________.
A) within the European Union because there would be no barriers to trade
B) in the United States because we have the same quality as any European company
C) in Switzerland because the Swiss are known for their fine detail work
D) in Asia because labor is cheaper there
27) The World Trade Organization evolved from which of the following?
A) Mercosur
B) General Agreement on Tariffs and Trade
C) Truman Doctrine
D) Marshall Plan
28) The North American Free Trade Agreement includes ________.
A) Mexico, Canada, and the United States
B) Canada, Mexico, the United States, and Costa Rica
C) the United States, Canada, Mexico, and Honduras
D) Canada, Mexico, Panama, and the United Sates
29) The World Trade Organization ________.
A) advises developing countries on issues of trade barriers
B) promotes long-term economic development and poverty reduction
C) exists to help countries conduct trade through a system of rules
D) facilitates trade among third-world countries and developed nations
30) One advantage of NAFTA has been ________.
A) less illegal immigration into the U.S.
B) lower unemployment in the U.S.
C) a higher standard of living in Mexico
D) lower costs for consumers in the United States
31) The United States belongs to a trade alliance known as CAFTA, which stands for ________.
A) Canadian American Free Trade Alliance
B) Columbian Argentine Free Trade Alliance
C) China Australia Free Trade Agreement
D) Central America Free Trade Agreement
32) The Association of Southeast Asian Nations is a trading alliance of ________.
A) eight Southeast Asian nations and Japan
B) eight Southeast Asian nations
C) ten Southeast Asian nations
D) ten Southeast Asian nations and China
33) One of the more recent trade alliances, which came into existence in 2002, is the ________
made up of 54 nations.
A) East African Community
B) African Union
C) South Asian Association for Regional Cooperation
D) Trans-Pacific Partnership
34) The forerunner of the Organization for Economic Cooperation and Development was the
________ that was formed in 1947 to administer American and Canadian aid under the Marshall
Plan for the reconstruction of Europe after World War II.
A) Organization of European States
B) Organizational Council of Europe
C) Organization for European Economic Cooperation
D) Organization for European Investment
35) The purpose of the World Trade Organization is to ________.
A) facilitate trade among member nations through a system of rules
B) recommend legislation to lessen the advantages of more advanced nations relative to
developing countries
C) manage foreign currency exchanges to alleviate the effects of inflation
D) enforce quotas and tariffs imposed by member nations
36) The purpose of the OECD is ________.
A) to settle disputes arising from trade between developed and third-world countries
B) to help member countries achieve sustainable economic growth
C) to raise the standard of living in South American countries
D) to control interest rates and inflation in member countries
37) Critics of the WTO claim that ________.
A) global trade destroys jobs and the natural environment
B) it favors third-world countries over developed countries
C) shifting jobs to developing countries harms the economies of member nations
D) has too little power to be effective
38) The International Monetary Fund is an organization that ________.
A) rules on disputes over tariffs and subsidies
B) helps countries conduct trade through a system of rules
C) provides technical advice to developing countries
D) promotes international monetary cooperation
39) The ________ is a group of five closely associated institutions, all owned by its member
countries, that provides vital financial and technical assistance to developing countries around
the world.
A) International Chamber of Commerce
B) World Bank Group
C) Organization for Economic Cooperation and Development
D) World Economic Forum
40) The OECD was formed to ________.
A) settle disputes arising from trade between developed and third-world countries
B) help member countries achieve sustainable economic growth
C) raise the standard of living in South American countries
D) control interest rates and inflation in member countries
41) Cypress Exports would like to establish retail outlets in Mongrovia, a quasi-democratic
African country with a growing middle class. But the national and local officials all want
“gratuities” to process the applications for permits. Cypress Exports should appeal to ________.
A) the World Trade Organization
B) the International Monetary Fund
C) the African Union
D) the Organization for Economic Cooperation and Development
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42) One case currently before the WTO involves ________.
A) the hyperinflation experienced by some small African nations that limits their ability to trade
with developed countries
B) copyright infringement–the use of intellectual materials created in the United States by mass
producers in Asia without payment of royalties to the creators
C) China’s export limits of rare earth metals that are necessary for the production of high-tech
devices
D) the sale of pirated software by terrorist organizations
43) Solidarity in the European Union is being undermined by protectionist pressures in some
member countries.
44) The United States, Canada, and Mexico are parties to the North American Free Trade
Association.
45) Mercosur is a trading group made up of ten South American countries.
46) When the 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.
47) The United States, Canada, Mexico, and Honduras are parties to the North American Free
Trade Association.
48) Explain why countries would choose to participate in a regional trading alliance.
49) Explain some of the benefits and challenges faced by American businesses because of
America’s membership in NAFTA.
50) What is the purpose of the WTO? Give an example of the type of issue that might come
before this organization.
51) What is the International Monetary Fund? What does it do?
52) What is the World Bank Group and what does it do?
53) According to the text, which of the following is a typical definition of a multinational
corporation?
A) It is a company that maintains operations in multiple countries.
B) It is a company that maintains franchises in multiple countries.
C) It is a company that has multiple home bases and manufacturing plants.
D) It is a company that pays corporate taxes in at least two countries.
54) Which one of the following would be considered a multinational corporation?
A) Westernet buys electricity from Canada and provides it to customers in Washington State.
B) Sherri’s Shipping transports manufactured goods between the U.S. and Asia, maintaining
offices in both countries.
C) Willy’s Websites maintains Internet sites for clients the world over from his offices in New
Jersey.
D) Betty’s Bonnets makes women’s hats in Jamaica and sells them to retailers in seven Caribbean
countries.
55) The ________ decentralizes its management and other decisions to the local country.
A) multidomestic corporation
B) global company
C) transnational organization
D) borderless organization
56) Which of the following is a feature of a multidomestic corporation?
A) all decisions are made in the home country
B) reflects an ethnocentric attitude
C) eliminates artificial geographic borders
D) has a decentralized management
57) Multidomestic corporations reflect the ________.
A) ethnocentric attitude
B) polycentric attitude
C) geocentric attitude
D) xenophobic attitude
58) Which of the following is a multinational corporation that tailors marketing strategies to the
host country’s unique characteristics?
A) borderless organization
B) global company
C) multidomestic corporation
D) transnational organization
59) Multidomestic corporations ________.
A) maintain operations in multiple countries, but do not allow managers in each country to make
their own decisions
B) reflect ethnocentric attitudes
C) decentralize management and other decisions to the local country
D) attempt to replicate their domestic successes by managing foreign operations from the home
country
60) Which one of the following represents the basic difference between multidomestic
corporations and global companies?
A) Multidomestic corporations typically do business with more countries than global companies.
B) Multidomestic corporations are run by global companies but must be owned by a local,
national company.
C) Multidomestic corporations decentralize management to the local country, while global
companies centralize management in the home country.
D) Multidomestic corporations reflect an ethnocentric attitude, while global companies reflect a
polycentric attitude.
61) As the international operations of their firm continues to grow, Theodore and James have
realized that decentralized management using foreign nationals to run operations in the host
countries works best. Their firm has developed into a ________ organization.
A) transnational
B) multidomestic
C) borderless
D) global
62) A corporation drops its organizational structure based on countries and reorganizes into
industry groups. This is an example of the company becoming a(n) ________.
A) ethnocentric company
B) polycentric organization
C) borderless organization
D) global company
63) Marco works for a multinational corporation as a plant manager but must receive approval
from the home office for any management changes to production processes. Marco most likely
works for a ________.
A) global company
B) multidomestic corporation
C) polycentric company
D) transnational company