Management, 13e (Robbins)
Chapter 4 Managing in a Global Environment
1) Only speaking one language is one sign that a nation suffers from ________.
A) parochialism
B) ethnocentrism
C) polycentrism
D) geocentrism
2) 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
3) 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.
4) 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
5) 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
6) Melanie joins 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
7) A manager who wishes to be successful in international business should avoid a(n) ________
attitude.
A) multicultural
B) multiracial
C) ethnocentric
D) geocentric
8) A(n) ________ attitude is characterized by parochialism.
A) geocentric
B) acculturated
C) multilinguistic
D) ethnocentric
9) Managers with a(n) ________ attitude view every foreign operation as different and hard to
understand.
A) geocentric
B) polycentric
C) ethnocentric
D) regiocentric
10) 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
11) 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
12) In today’s global environment, managers must have a(n) ________ attitude to be successful.
A) ethnocentric
B) parochial
C) bigoted
D) geocentric
13) Americans tend to suffer from parochialism.
14) Managers with an ethnocentric attitude do not trust foreign employees with key decisions or
technology.
15) Managers with a polycentric attitude tend to view every foreign operation as different and
hard to understand.
16) The polycentric attitude is a world-oriented view focusing on using the best approaches and
people from around the globe.
17) 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.
18) List and discuss the three attitudes managers might have toward international business.
19) 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
20) The single European Union currency is called the ________.
A) krone
B) krona
C) pound
D) euro
21) 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) a company within the European Union because there would be no barriers to trade
B) a company in the United States because we have the same quality as any European company
C) a company in Switzerland because the Swiss are known for their fine detail work
D) a company in Asia because labor is cheaper there
22) 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
23) 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
24) The World Trade Organization was formed in the year ________.
A) 1995
B) 1967
C) 1971
D) 1983
25) 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
26) 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
27) 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
28) 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 financial assistance to developing countries
D) promotes international monetary cooperation
29) 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
30) 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
31) 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
32) 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
33) 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.
34) Solidarity in the European Union is being undermined by protectionist pressures in some
member countries.
35) The United States, Canada, and Mexico are parties to the North American Free Trade
Association.
36) Mercosur is a trading group made up of ten South American countries.
37) Explain some of the benefits and challenges faced by American businesses because of
America’s membership in NAFTA.
38) What is the purpose of the WTO? Give an example of the type of issue that might come
before this organization.
39) What is the International Monetary Fund? What does it do?
40) What is the World Bank Group and what does it do?
41) 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.
42) The ________ decentralizes its management and other decisions to the local country.
A) multidomestic corporation
B) global company
C) transnational organization
D) borderless organization
43) Multidomestic corporations reflect the ________.
A) ethnocentric attitude
B) polycentric attitude
C) geocentric attitude
D) xenophobic attitude
44) 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
45) 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
46) 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
47) Which of the following is 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.
48) 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
49) 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) a multidomestic corporation
C) an polycentric company
D) a transnational company
50) A global company reflects the ________.
A) pancentric attitude
B) ethnocentric attitude
C) geocentric attitude
D) polycentric attitude
51) 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
52) Transnational organizations are also known as ________.
A) ethnocentric organizations
B) polycentric organizations
C) borderless organizations
D) multidomestic organizations
53) Which of the following types of global organizations reflects the geocentric attitude?
A) multidomestic corporation
B) transnational organization
C) global company
D) regional organization
54) Melanie would like to become a part of the global retail community. Which of the following
options should Melanie consider as her first step?
A) She should engage in global sourcing.
B) She should engage in licensing.
C) She should engage in franchising.
D) She should develop strategic alliances with foreign companies.
55) Theodore and James decide to enter into an agreement with a firm in Europe allowing them
to use the rights to their software, brand name, and software specifications in return for a lump
sum payment. The firm is a service organization that plans to use the software to assist its
customers. Their agreement is a(n) ________.
A) export agreement
B) licensing agreement
C) franchise agreement
D) import agreement
56) Nathan uses ethnic craftsmen to make high quality oak furniture. If he decides to offer his
furniture for sale in other countries, he will be engaging in ________.
A) importing
B) exporting
C) licensing
D) franchising