Fundamentals of Management, 10e (Robbins)
Chapter 3 Integrative Managerial Issues
1) Which of the following factors has contributed to the current view that management is more
unethical today than before?
A) increasing publicity
B) increasing government standards
C) decreasing employee morale
D) changes in shareholder expectations
2) Which statement most closely represents the true state of managerial ethics?
A) There has been little reporting on managerial ethics by the press.
B) Younger managers are more ethical than older managers.
C) Managers from foreign companies are less ethical than those from the United States.
D) Managers are more ethical today than in the past.
3) How do global supply chains resemble biological organisms?
A) Global supply chains are highly resilient in many ways, yet show marked vulnerability to
seemingly small events.
B) Global supply chains are highly resilient in many ways, yet they show a marked need for
increasing amounts of energy.
C) Global supply chains are highly resilient in many ways, yet they show a marked need for
conflict and war.
D) Global supply chains are highly resilient in many ways, yet show marked vulnerability to
microscopic intruders.
4) When a U.S. ship yard purchases raw materials from locations around the world, for example
steel from China, this is called ________.
A) licensing
B) a joint venture
C) global sourcing
D) a global alliance
5) A global village can be best characterized as a business climate in which there are ________.
A) rigid international boundaries
B) no international boundaries
C) rigid rules and standards
D) no rules or standards
6) Which of the following is NOT a key characteristic of a global organization?
A) exchanges goods and services with consumers in other countries
B) employs high-level technical employees and managerial talent from other countries
C) uses resources from other countries
D) has a home country in which all decisions are made and all profits flow
7) A multinational corporation (MNC) ________.
A) is any organization that maintains operations in more than one country
B) is defined as a company that has its home base in the United States and various operations
overseas
C) includes any company that exports goods overseas
D) is defined as any company that has no home base
8) A global corporation ________.
A) centralizes management in a single home country
B) decentralizes management so that each local country’s operation is managed locally
C) decentralizes management so there is no single home location
D) has two main management locations located on different sides of the globe
9) ________ is a good example of a multidomestic corporation.
A) Coca-Cola
B) John Deere
C) Procter & Gamble
D) The New York Yankees
10) Which of the following best characterizes a transnational corporation?
A) a single central home-country management
B) an organization in which multiple operations function with a large degree of autonomy
C) a loose alliance of totally separate, wholly independent companies
D) a company that eliminates geographical boundaries
11) Which of the following would NOT be called an “American company”?
A) a multidomestic with a home base in Memphis, Tennessee
B) a global corporation that originated in Dallas, Texas and has operations in 12 countries
C) a transnational that originated in New York City with operations in 6 countries
D) a global corporation that began in Japan but has since relocated and now has its sole
headquarters in Chicago
12) Which choice constitutes the typical first step for an organization that is “going global”?
A) outsourcing
B) franchising
C) licensing
D) strategic alliance
13) Franchising is used widely by ________.
A) universities
B) accounting firms
C) restaurant chains
D) electric power companies
14) Which of the following is usually found in the final stage of an organization’s global
evolution?
A) exporting products to other countries
B) outsourcing jobs to foreign countries
C) establishing strategic alliances with partners
D) licensing products in foreign countries
15) A fully global organization might set up a ________ with a foreign company to create a new,
independent company that produces a specific product.
A) foreign subsidiary
B) franchise
C) licensing agreement
D) joint venture
16) Of the approaches to pursuing international markets, developing a ________ involves the
greatest commitment and risk.
A) franchise
B) joint venture
C) strategic alliance
D) foreign subsidiary
17) Joint ventures are a type of ________.
A) license
B) franchise
C) foreign subsidiary
D) strategic alliance
18) A Coca-Cola bottling plant in Bolivia is wholly owned by a local businessperson. What kind
of venture is this plant likely to be?
A) a franchise
B) a licensed plant
C) a foreign subsidiary
D) a joint venture
19) Which of the following is the best synonym for the word parochial?
A) religious
B) catholic
C) broad
D) narrow
20) 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
21) Status in France within a corporation is largely ________.
A) measured in the same way it is in the United States
B) based on how much money a person makes
C) based on such things as seniority and educational level
D) based on an individual’s personal accomplishments
22) In his study of differences in cultural environments, Geert Hofstede found that ________.
A) people are largely the same from culture to culture with respect to values
B) the views of managers differ greatly from those of employees with respect to values
C) the views of IBM employees differ widely from the general population with respect to values
D) people vary from culture to culture in five value categories
23) ________ is a cultural dimension measured by Hofstede in which people identify strongly
with a group within a society.
A) Power distance
B) Collectivism
C) Individualism
D) Uncertainty avoidance
24) Which of the following would be likely to be true in a country with a high power distance?
A) Hundreds of statues, billboards, and posters of the leader would appear all over the capital.
B) The leader’s likeness would appear only in the newspaper from time to time.
C) Top managers and employees would dress in similar ways.
D) Rather than employ a driver, top managers would drive their own cars to work.
25) A country with a high uncertainty avoidance ________.
A) is highly structured and depends on rules and social institutions to cope with uncertainty
B) is highly structured and does not depend on rules and social institutions to cope with
uncertainty
C) has no rules
D) has no structure or social institutions
26) In a country with a low uncertainty avoidance, people cope with uncertainty ________.
A) by following rules and depending on social institutions
B) by making new rules
C) largely without rules or strong social institutions
D) by looking to the religious teachings
27) Societies with a high assertiveness rating on GLOBE would tend to be ________.
A) passive
B) excessively polite
C) competitive
D) uncertain
28) In a society with high ________ on GLOBE, you would expect members of a corporation to
have a strong identification with the corporation.
A) gender differentiation
B) future orientation
C) in-group collectivism
D) humane orientation
29) ________ on Hofstede’s dimensions of natural culture is an attribute that describes how
materialistic a society is.
A) Power distance
B) Quality of life
C) Quantity of life
D) Individualism
30) Which feature of Hofstede’s work lends the study a great deal of validity?
A) It measured attitudes of IBM employees.
B) It measured attitudes of many successful people.
C) The survey was carried out in the 1970s.
D) It surveyed 116,000 people.
31) Which of the following dimensions from the GLOBE framework has no equivalent
counterpart in Hofstede’s framework?
A) gender differentiation
B) humane orientation
C) future orientation
D) individualism/collectivism
Business Expansion Plan (Scenario)
As a business expansion director, Shana’s goal is to scout potential locations for her company’s
planned expansion to other countries. There are many options, some of which include
maintaining the business’s head office in the United States. Other options send company
representatives to foreign operations when necessary, or establishing separate operation facilities
abroad and hiring locals as managers.
32) If Shana’s company decides to open operations in France but maintain company management
in the United States, it would be considered a ________.
A) transnational corporation
B) global corporation
C) multidomestic corporation
D) joint venture
33) If Shana’s company decides to open a new operation in Germany that has local managers and
is run locally but still exists under the umbrella of the home company, it would be considered a
________.
A) national corporation
B) borderless organization
C) trade alliance
D) multidomestic corporation
34) If Shana’s company reorganizes based on industry groups with no designated home country,
the entire organization would be considered a ________.
A) transnational organization
B) strategic alliance
C) multidomestic corporation
D) global corporation
35) Shana is considering forming a partnership with a Dutch corporation that will create an
entirely new company called Half Moon. What kind of enterprise will Half Moon be?
A) a multidomestic corporation
B) a foreign subsidiary
C) a joint venture
D) a domestic subsidiary
36) Shana’s company “went global” several years ago. Which of the following was likely to have
been the first step it took in going global?
A) outsourcing
B) importing
C) exporting
D) licensing
37) Shana’s company hopes to become a fully global corporation in the coming years. Which of
the following would best indicate that the company is fully “global”?
A) exporting and importing
B) licensing
C) setting up a foreign subsidiary
D) franchising
Software Entrepreneurial Venture (Scenario)
Theodore and James have formed TJ Soft, an entrepreneurial venture to develop games and other
kinds of software for consumers. Their company, which includes TJ Soft stores, is looking for
opportunities in the future that include international operations.
38) A foreign company wants to be able to copy and manufacture TJ Soft programs and sell
them in its stores. What would be an appropriate approach for them to use?
A) licensing
B) franchising
C) renting
D) appropriating
39) A firm in South America wants to open a TJ Store in a shopping mall. What is the best
approach for this firm?
A) strategic alliance
B) licensing agreement
C) franchise
D) foreign subsidiary
40) A game company in Thailand wants TJ Soft to join it and work together to create a new
game that bears the brand name of both companies. What would be an appropriate approach for
this venture?
A) global strategic alliance
B) licensing agreement
C) joint venture
D) franchise
A Different View (Scenario)
Jana has spent the last year traveling to different operations for her company. She visited
factories in Mexico and Thailand, a finance operation in Singapore, a pearl company in Japan,
and many other venues. She now has collected her thoughts about the various places she visited.
41) In Mexico and Japan, Jana noticed that it seemed easy to convince people to work together
for the good of the group. How would you characterize this trait?
A) collectivist
B) individualist
C) humane
D) assertive
42) In Greece Jana visited a pharmaceutical operation. She found that managers there were
charming but not at all shy. If they thought they were right they tended to be aggressive and
confrontational. How would you characterize this trait?
A) high uncertainty avoidance
B) assertive
C) future oriented
D) low uncertainty avoidance
43) In Venezuela Jana found that people tended to show great deference toward their superiors.
When meeting with one higher-up, she noticed that the local managers seemed to exhibit
extremely obsequious behavior. How would you characterize this trait?
A) future oriented
B) high uncertainty avoidance
C) low power distance
D) high power distance
44) In Denmark Jana met people who marveled about the ability of Americans to be so “bold”
and flexible when it came to making decisions about the future, while the Danish tended to rely
on rules when facing uncertainty. How would you characterize this trait that Americans appear to
have?
A) low uncertainty avoidance
B) high uncertainty avoidance
C) high power distance
D) individualistic