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57. Which of the following is NOT one of the cultural dimensions as defined by
Hofstede?
a. uncertainty avoidance or acceptance
b. performance orientation vs. humane orientation
c. assertiveness vs. nurturing
d. long-term vs. short-term orientation
58. Which of the following is NOT a frequent result of working outside one’s native
country?
a. difficulty adjusting to a different language, culture, and society
b. culture shock
c. unknowing use of inappropriate behaviors
d. loss of productivity
59. The capability to manage ______ has become one of the most important skills for
global leaders.
a. international employees
b. multinational corporations
c. cultural diversity
d. international finance
60. Being abruptly transferred to a very different foreign country can lead to what is
called ______, which can lead to unknowingly using inappropriate behaviors.
a. ethnocentric shock
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b. culture shock
c. parochial shock
d. expatriate shock
61. Lay’s potato chips are sold around the globe, but the selection of available flavors
varies from country to country to accommodate different taste preferences. This is an
example of the ______ practices of international and multinational corporations.
a. think locally, act globally
b. think globally, act locally
c. think locally, act locally
d. think globally, act globally
62. All of the following are methods a company can use to become global, EXCEPT
______.
a. importing/exporting
b. contracting
c. leasing and renting
d. direct investment
63. The lowest cost/lowest risk form of global business is ______.
a. franchising
b. direct investment
c. contracting
d. global sourcing
Instructor Resource
Lussier, Management Fundamentals 8e
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64. The highest cost/highest risk form of global business is ______.
a. franchising
b. direct investment
c. contracting
d. global sourcing
65. ______ saves money and better allocates global resources, as it benefits everyone
because countries specialize in what they can do better than others.
a. Joint ventures
b. Global sourcing
c. Direct investment
d. Franchising
66. ______ is similar to global sourcing, but it tends to be on a large scale.
a. Franchising
b. Direct investment
c. Contracting
d. Importing/exporting
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67. Apple designs and markets products that are actually manufactured by a Taiwanese
company. This is an example of ______.
a. joint ventures
b. contracting
c. licensing
d. importing/exporting
68. Toyota, a Japanese company, owns manufacturing plants in Kentucky, Indiana,
West Virginia, and several other states as well as in more than a dozen other countries
outside of Japan. This is an example of ______.
a. direct investment
b. contracting
c. franchising
d. importing/exporting
69. Which of the following is most characteristic of multinational corporations?
a. strategic alliances and joint ventures
b. licensing and franchising
c. direct investment
d. importing/exporting
70. Licensing and franchising are also known as ______.
a. contract manufacturing
b. diversification
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c. cooperative contracts
d. investments
71. An agreement to share resources that does not necessarily involve creating a new
company is a ______.
a. joint venture
b. direct investment
c. strategic alliance
d. contracting
72. A ______ is created when two or more firms share ownership of a new company.
a. joint venture
b. strategic alliance
c. direct investment
d. contract
73. The buying and building of operating facilities in a foreign country is a ______.
a. joint venture
b. strategic alliance
c. direct investment
d. global manufacturing decision
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74. Which of the following is NOT one of the six forms of global business?
a. global sourcing
b. strategic alliances
c. global marketing
d. contracting
True/False
1. A domestic business conducts business in more than one country.
2. A multinational corporation can have partial or full ownership of operations in another
country.
3. In order to be a subsidiary of a company, the subsidiary must be located in a different
country than the controlling company.
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Lussier, Management Fundamentals 8e
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4. Protectionism refers to trade barriers to protect domestic companies and their
workers from foreign competition.
5. Workplace diversity includes customers.
6. Diversity and work aren’t separate because we tend to judge the nature of workers by
the gender, race, and other diversity of the people who do the work.
7. Inclusion is a practice of ensuring that employees feel a sense of pride of
membership within their diversity group.
8. By around 2025, less than half of the total U.S. population will be Caucasian.
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Lussier, Management Fundamentals 8e
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9. Discrimination is an illegal practice that gives unfair treatment to diversity groups in
employment decisions.
10. There is relatively little evidence that diversity helps teams and organizations
perform better in terms of creativity, innovation, revenue, and profits.
11. The aging of the global population suggests an increased need for health care
workers and a decreased need for factory workers.
12. Although the current workforce is essentially split between men and women, women
earn about 77% of what men make.
13. The terms sex and gender are often used interchangeably, but they are different.
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Lussier, Management Fundamentals 8e
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14. The pay differences between men and women are greater for women and men with
less education in lower level jobs, while the differences for highly educated women and
men in higher level jobs are relatively small.
15. Women in America hold around half of the top management positions in Fortune
500 corporations.
16. Women are more likely than men to be promoted to CEO when the company is
struggling or in crisis.
17. The greatest bias against women in the workplace tends to occur in the most
successful organizations.
18. Most Fortune 500 companies provide nondiscrimination protection for sexual
orientation.
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19. The Civil Rights Act of 1964 includes protection against discrimination based on
sexual orientation.
20. The terms race and ethnicity are essentially synonymous.
21. College educated black workers make about the same as white workers with similar
college degrees.
22. Research supports that blacks are at a disadvantage when they are evaluated in
terms of their leadership ability, as they are negatively stereotyped, which leads to
poorer prospects for career advancement.
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23. Research suggests that black, Hispanic, and Asian women have a higher desire to
be promoted to top executive positions than white women and men.
24. As it relates to the legal requirements regarding religious diversity, the term undue
hardship refers to the need to pay premium wages or other costs to accommodate an
employee’s religious rights.
25. The Hofstede culture dimensions have been invalidated with time and replaced by
Project GLOBE.
26. China is a long-term oriented country, meaning that the culture focuses primarily on
the past and present and immediate gratification.
27. Expatriates are individuals who have given up their citizenship in their native
country.
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28. When it comes to international assignments, accurate communication can be
difficult even with a common language.
29. Hiring others from outside the organization to perform work worldwide is known as
contract manufacturing.
30. Global sourcing is also known as outshoring.
31. The other methods of going global usually encompass global sourcing.
32. It is usually difficult for small businesses to go global, and they account for a small
percentage of all exports.
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33. In a strategic alliance, the two (or more) companies remain separate and
independently controlled but share ownership and control of the new company they
create.
34. Technology in communications and travel has clearly accelerated the speed of
globalization of business.
Essay
1. Describe the difference between international companies and multinational
corporations.
2. List and describe the four trade barriers.
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3. Explain why diversity is important in organizations.
4. Describe the differences between affirmative action, valuing diversity, and inclusion.
5. Compare and contrast the job wants of Generation Y/Millennials versus the Baby
Boomer generation.
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Lussier, Management Fundamentals 8e
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6. Discuss some of the ways millennials are changing business operations to suit their
preferences.
7. Describe some of the factors that have shaped the development of Generation Z
individuals and discuss how those factors have influenced members of this generation.
8. List and describe two dimensions of Hofstede’s National Diversity Dimensions.
Instructor Resource
Lussier, Management Fundamentals 8e
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9. The United States falls high on Assertiveness and high on Performance Orientation.
How does this affect one’s employment in the U.S. workforce?
10. Compare and contrast global companies versus small businesses as they relate to
these three practices: management teams, operations and products, and technology
and R&D.
11. What is the difference between importing and exporting?
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12. What is the difference between licensing and franchising?