Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
Chapter 3: Managing Diversity in a Global Environment
Test Bank
Multiple Choice
1. ______ is the buying and selling of goods and services among different countries.
a. Global networking
b. Global business
c. Global enterprise
d. Global marketing
2. Which of the following companies are based primarily in one country but transact
business in other countries?
a. international companies
b. multinational companies
c. subsidies
d. franchises
3. A(n) ______ has ownership in operations in two or more countries.
a. international company
b. global company
c. multinational corporation
d. multicountry company
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
4. Which of the following is a company owned and controlled by another company?
a. multinational
b. parent company
c. global company
d. subsidiary
5. A(n) ______ company eliminates artificial geographic boundaries by not having a
singular national headquarters.
a. global
b. international
c. subsidiary
d. transnational
6. Kayla works for Cellular World Company and has created an ad for the newest
version of the U-Phone, using imagery of the American flag and an eagle to convey the
idea that the phone gives its users increased freedom. Kayla is based in the United
States but developed the ad for use worldwide. Citizens of other countries found the ads
offensive and improper. In this scenario, by failing to consider the perspectives of
international customers, Kayla was showing ______.
a. parochialism
b. not-invented-here syndrome
c. protectionism
d. nationalism
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
7. Kayla works for Cellular World Company and is based in the United States. During a
phone call with one of the company’s German engineers, she told them that American
engineering and quality was better than German engineering and that they should
revise their processes and operations to match those of the plant in America. Kayla is
showing ______.
a. parochialism
b. nationalism
c. ethnocentrism
d. protectionism
8. Samuel manages an automobile dealership. He overheard a customer complaining to
his salesperson, Noreen, that he wasn’t happy that the vehicles were made in Japan,
rather than in the United States. The customer clearly felt that more vehicles should be
made in his country. The customer was demonstrating ______ syndrome.
a. not in my backyard
b. not invented here
c. domestic product favoritism
d. home country product preference
9. Which of the following is NOT considered to be a trade barrier?
a. dumping
b. embargo
c. quota
d. tariffs
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
4
10. ______ decrease the supply of foreign products, which raises their prices.
a. Tariffs
b. Embargos
c. Subsidies
d. Quotas
11. Which trade barrier uses a tax method?
a. tariffs
b. quotas
c. embargos
d. subsidies
12. A company selling products in one country at a high profit and selling the products in
another country at a loss with intentions of driving out competitors is said to be ______.
a. diversifying
b. protective
c. dumping
d. embargoing
13. ______ are a total ban on the importing of a product from one or more countries.
a. Embargos
b. Quotas
c. Subsidies
d. Tariffs
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
14. ______ set a limit on the number or volume of a product that can be imported or
exported during a set period.
a. Subsidies
b. Tariffs
c. Quotas
d. Embargos
15. Government grants, loans, and tax breaks given to domestic companies are
considered to be ______.
a. quotas
b. subsidies
c. tariffs
d. embargos
16. If Smith and Wesson attempted to sell handguns directly to a distributor in another
country and that country wanted to protect their domestic firearms industry by
preventing all imports of Smith and Wesson products, they would most likely be stopped
by a(n) ______.
a. embargo
b. quota
c. subsidy
d. tariff
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
17. Wayne’s company received a very low interest loan from the federal government to
help him expand his manufacturing capacity in order to better compete with foreign
companies that make similar products. The trade barrier in this case is a(n) ______.
a. embargo
b. quota
c. subsidy
d. tariff
18. A direct tax on imports to make them more expensive is known as a ______.
a. tariff
b. embargo
c. subsidy
d. quota
19. Which of the following replaced the General Agreement on Tariffs and Trade?
a. CAFTA-DR
b. NAFTA
c. WTO
d. UNASUR
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
7
20. ASEAN stands for ______.
a. Association of Southeast Asian Nations
b. Association of Standard Ethics in Asian Nations
c. All South East Asian Nations
d. Alliance of Southeastern Asian Nations
21. BRIC stands for ______.
a. Bolivia, Romania, Indonesia, Croatia
b. Bulgaria, Republic of Korea, Iceland, Cuba
c. Belgium, Rwanda, Italy, Costa Rica
d. Brazil, Russia, India, China
22. In 2016, which country voted to drop out of the European Union?
a. Greece
b. United Kingdom
c. Romania
d. Germany
23. ______ is how much of one country’s currency one gets for that of another country.
a. Balance of trade
b. Purchasing power
c. Standard of living
d. Exchange rate
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
24. When the U.S. dollar is ______, U.S. businesses benefit because foreign-made
products are generally ______ expensive than domestically produced goods.
a. weak; less
b. strong; more
c. weak; more
d. strong; less
25. ______ is an organization of 189 countries with the primary purpose of working to
keep the international monetary system relatively stable.
a. IMF
b. WTO
c. TPP
d. EU
26. Which of the following refers to the level of wealth, comfort, material goods, and
necessities available to a certain socioeconomic class in a certain geographical area?
a. purchasing power
b. balance of trade
c. standard of living
d. exchange rate
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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27. The relative cost of a product in different countries refers to ______.
a. purchasing power
b. balance of trade
c. standard of living
d. exchange rate
28. The key to increasing the standard of living is to increase ______.
a. profits
b. productivity
c. currency strength
d. share price
29. The major argument against free trade is ______.
a. loss of jobs
b. inflation
c. increases in automation
d. exchange rate instability
30. One argument for free trade is that trade barriers lead to ______.
a. increased imports
b. decreased automation
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
c. trade wars
d. political instability
31. A country decides to put a direct tax on imported jewelry in order to encourage
citizens to purchase jewelry from their own country. What concept is at work in this
situation?
a. tariffs
b. quotas
c. subsidies
d. embargos
32. ______ is the variety of people with different group identities within the same
workplace.
a. Diversity
b. Global business
c. Ethnocentrism
d. Cultural variety
33. ______ policies are designed to improve work outcomes for underrepresented
groups by providing them with extra help in the employment process.
a. Equal employment
b. Valuing diversity
c. Affirmative action
d. Inclusion focus
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Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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34. All the following are consequences of discrimination through stereotyping, EXCEPT
______.
a. decreased turnover
b. decreased self-esteem and individual performance
c. conflict between individuals and groups
d. harassment
35. ______ people make up the largest minority group in the United States.
a. Black/African American
b. Asian
c. Hispanic
d. American Indian and Alaska native
36. According to the U.S. Census Bureau, by 2060, one in three people in the Unites
States population will be ______.
a. White
b. Black/African American
c. Asian
d. Hispanic
37. “Other types of diversity” do not include ______.
a. effort
b. weight
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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c. personality
d. attractiveness
38. All the following are benefits of diversity training, EXCEPT ______.
a. minimizing differences
b. viewing people as individuals
c. realizing that diversity improves teamwork
d. breaking down negative stereotypes
39. Sarah has been with an organization for 10 years and is considered a highly
knowledgeable employee who is a valuable asset to the organization. However, every
time she tries to apply for a promotion for which she is well qualified, she has been
declined. She’s noticed that other women in her organization appear to be having
similar experiences but that her male coworkers don’t seem to have any problems
getting promoted. The barrier Sarah and her female coworkers appear to be
experiencing is commonly called the ______.
a. glass ceiling
b. glass wall
c. glass elevator
d. glass cliff
40. The idea that women are sometimes promoted to leadership positions when the
chance of failure is greatest is known as the ______.
a. glass ceiling
b. glass wall
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
c. glass elevator
d. glass cliff
41. A ______ can be executed to see the records of diverse group hiring and efforts
made to help the groups succeed.
a. human resource audit
b. corporate culture audit
c. hiring audit
d. diversity audit
42. Which of the four types of diversity face the most discrimination?
a. age
b. gender
c. race/ethnicity
d. disability
43. ______ prohibits discrimination against people with disabilities (treating them
differently because of their disabilities).
a. Employment with Disability Act
b. Americans with Disabilities Act
c. Disability Employment Act
d. Disabled Americans Act
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
44. ______ is defined as a mental or physical impairment that substantially limits one or
more major life activities.
a. Handicap
b. Incapability
c. Disability
d. Constraint
45. All the following are traits of ethnicity, EXCEPT ______.
a. skin color
b. customs
c. allegiances
d. cultural background
46. Which one of the following is considered a myth regarding the older workforce?
a. They show better judgment.
b. They are less likely to quit.
c. They have fewer injuries on the job.
d. They are not capable of learning new technology.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
15
47. In terms of their career, which generation is most likely to believe that the ability to
work remotely is a right, not a privilege?
a. Traditionalists
b. Baby Boomers
c. Generation X
d. Generation Z
48. For the first time in history, ______ generations are working side by side.
a. three
b. four
c. five
d. six
49. Which of the following is NOT a characteristic of Generation Z?
a. They expect to be able customize things exactly to their preferences.
b. They consider themselves both more accepting and more rebellious than other
generations.
c. They have a shiny outlook on their future.
d. They view college as an investment, not an experience.
50. By 2060, the United Nations estimates that for every 100 people of working age,
there will be ______ people who are 65 and older.
a. 15
b. 25
c. 30
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
d. 45
51. Management changes including informal hierarchies, teamwork with shared
decisions, social media sharing, more flexible work schedules are a result of which
generation’s influence?
a. Traditionalists
b. Baby Boomers
c. Generation X
d. Generation Y
52. ______ is considered the most significant factor in holding both women and
minorities back from being promoted to top-level positions.
a. Training
b. Education
c. Discrimination
d. Immigration
53. Employers are required by law to make ______ for employees’ religious beliefs
without ______ on the employer.
a. all accommodations; undue hardship
b. reasonable accommodations; excessive burden
c. all accommodations; excessive burden
d. reasonable accommodations; undue hardship
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
54. When promoting diversity, be sure to do all of the following, EXCEPT ______.
a. tailor opportunities to groups, not individuals
b. treat group differences as important but not special
c. follow all Equal Employment Opportunity laws
d. make sure diverse employees have access to the same job training and other
practices at work to have equal opportunities to advance
55. Hofstede’s research identified ______ cultural dimensions.
a. 11
b. 9
c. 7
d. 5
56. Project GLOBE identified ______ cultural dimensions.
a. 11
b. 9
c. 7
d. 5