Management, 9e (Kinicki)
Chapter 4 Global Management Managing across Borders
1) While in Italy, Sam was able to communicate important information to Fred, his business
partner, via e-mail. Later that day, Sam remarked to Fred about how helpful it was that he was able
to return to their office in New York in less than nine hours. The “global village” refers to this
“shrinking” of time and space as air travel and the electronic media have made it easier for people
around the globe to communicate with one another.
2) Kayla, a teacher, is interested in helping children in other countries learn how to read. She has
formed an international nonprofit organization, Read to the World, whose employees travel to
Africa to donate books and work in schools as tutors. Read to the World is an example of a
multinational corporation.
3) Scott, a manager at the Rome, Italy, store of an American-owned clothing company,
understands the differences and similarities between American and Italian customers, customs,
culture, and practices. As a result, Scott uses his understanding of Italian culture, tastes, and
business practices to help him market his products to Italian customers in Rome—and he uses his
understanding of American culture to sell his products to American tourists who are visiting
Rome. Scott is an example of a geocentric manager.
4) Two managers from Appliance King were talking to Uri, their district manager, about Hannah,
the unpopular store manager. Vivian, the assistant manager, said, “I believe I speak for other
managers and employees when I say that Hannah acts like she knows it all. We all feel that Hannah
does not listen to any of us because she always thinks her way is right and does not want to
consider any other opinion.” Hannah is an example of a geocentric manager.
5) In 1999, the top exporting nation was the United States, but in 2016, the world’s top exporting
nation was China.
6) A greenfield venture is a strategic alliance with individuals and organizations in developing
nations; the venture’s goals are to assist, educate, and share the risks and rewards of starting a new
nonprofit organization in the developing country.
7) NAFTA is a trading bloc consisting of the United States, Canada, Panama, and Mexico.
8) The “most favored nation” trading status describes a condition in which a country grants other
countries favorable trading treatment, such as the reduction of import duties.
9) Linda, the human relations manager, is having lunch with Kellyanne, who will be leaving to
manage the company office in Hiroshima, Japan. As the bill for lunch comes, Linda asks
Kellyanne if she is aware of tipping practices in Japan. Kellyanne says, “Yes, it is 15–20 percent.”
Linda thanks Kellyanne for the information and notes that she when she was in Europe, she
learned that a 10% charge is added only for exceptional service. In both cases, Kellyanne is
correct.
10) Michelle grew up helping her father work on cars in his auto repair shop and developed into an
excellent auto technician. Because of stereotypes regarding women in this field, she is interested in
finding a shop that minimizes gender discrimination and gender role inequalities. Michelle wants
to work for a company that highly values gender egalitarianism.
11) Which of the following is NOT true about the concept of traveling for business?
A) Air travel and the electronic media have made it easier for the people around the globe to
communicate with one another.
B) Exported services include travel, transportation, and computer services, valued at just over
$500 billion.
C) A recent survey found that 70 percent of millennials cite their desire to travel as the primary
reason they work in the first place.
D) The number of U.S. passports issued per year has grown steadily over the last several years,
reaching more than 21.3 million for 2017, according to the Department of State.
E) Traveling abroad is a way to develop cultural awareness, a career readiness competency that
can help ensure your international experience enhances your career success.
12) Globalization is the trend
A) of the world economy becoming a less dependent system.
B) of the world economy adding more independent markets.
C) toward one world language and culture.
D) of the world economy toward becoming a more interdependent system.
E) toward one world economy and banking system.
13) When thinking about interpersonal space, which country has the smallest social distance in
feet?
A) Germany
B) United States
C) India
D) Canada
E) China
14) Great systems of ________ are the hallmark of great civilizations.
A) laws
B) thinking
C) leadership
D) communications
E) manufacturing
15) Last week Gary, CEO of Quality Furniture in North Carolina, traveled to Europe to visit
customers. While overseas, Gary checked his e-mail daily and showed his company’s website to
customers, explaining how the website will help them place orders and receive merchandise more
quickly. After visiting the last customer Friday morning, Gary was able to return to the corporate
office in North Carolina to meet with his board of directors that night. ________ is the “shrinking”
of time and space with air travel and the electronic media.
A) The intranet
B) A flat world
C) The small-world philosophy
D) E-commerce
E) The global village
16) According to Rosabeth Moss Kantor of the Harvard Business School, which three events of the
1980s paved the way for the global economy?
A) The Berlin Wall came down, countries worldwide opened their economies to foreign investors,
and there was a worldwide trend of governments increasingly regulating their economies.
B) The Berlin Wall was built, Asian countries formed their own stock market, and NAFTA was
implemented.
C) The Berlin Wall came down, Asian countries opened their economies to foreign investors, and
there was a worldwide trend of governments deregulating their economies.
D) The governments of China and India implemented certain aspects of capitalism, Nixon opened
China to international trade, and the value of the U.S. dollar skyrocketed.
E) The Berlin Wall came down, NAFTA and CAFTA were implemented, and the Dow Jones
Industrial Average hit 10,000.
17) Deondre, who owns an investment firm with customers worldwide, has witnessed how
dangerous global economic interdependency can be. During a lunch meeting, he mentioned to a
customer, “In my opinion, ________ have been two negative effects of global economic
interdependency for the United States.”
A) other countries stealing U.S. technology and the loss of well-paying jobs in the United States
B) a huge surplus of funds from global investments flowing into the United States and huge cost
increases
C) reduced foreign direct investment (FDI) into the United States and lower-quality goods being
produced domestically
D) more expensive goods being produced domestically and bigger markets for American imports
E) fewer organizations utilizing MBO and poorer-quality goods imported from abroad
18) Technology philosopher Nicholas Negroponte proposed that the global market driven by
electronic information
A) “causes products to become more expensive.”
B) “increases technical literacy within organizations but results in information overload.”
C) “results in new laws but less synergy and less ethical behavior.”
D) “causes an increase in the types of goods available but decreases in product quality.”
E) “forces things to get bigger and smaller at the same time.”
19) Foster, who owns a successful business with two locations and a few international clients, was
approached by a large organization about dramatically expanding his company. Foster later told
his wife that he is happy with his success, but he wants to stay small because if he decides to add
new products, small companies
A) take more time to start new endeavors.
B) typically maneuver slowly with new ideas.
C) can get started more easily and maneuver faster.
D) tend not to change due to inexperienced management.
E) can adjust more easily to capital shortages.
20) Eloise, an engineer for an oil company, is interested in working overseas at this stage of her life
because she knows that foreign work experience demonstrates ________ to potential employers.
A) independence, resourcefulness, and discipline
B) good management skills
C) independence and strong leadership skills
D) independence, resourcefulness, and entrepreneurship
E) discipline and a strong will
21) Fresh Toppings is based in Sacramento, California and has restaurants in 25 countries. In the
United States, Fresh Toppings would be viewed as which of the following?
A) multinational corporation
B) conglomerate
C) multinational organization
D) international enterprise
E) foreign firm
22) Sox for All is a global nonprofit organization that works with schools and various companies
to donate socks and shoes to poor children throughout the world. Sox for All is an example of a
A) multinational corporation.
B) conglomerate.
C) foreign firm.
D) philanthropic corporation.
E) multinational organization.
23) Ethnocentric managers believe that their native country, culture, language, and behavior
A) are equal to all other cultures.
B) are hurtful to others.
C) need to be changed.
D) make them citizens of the world.
E) are superior to all others.
24) Pablo, a construction manager with employees working in Puerto Rico, is having a hard time
with employee turnover. While speaking with his human resources manager, Avery, he says he
does not understand why the workers come to work late, take longer lunches, and yet still punch
out at five o’clock. He feels they should want to work to get the country back on its feet and do
what it takes to get the job done. Based on this example, Pablo is most likely a(n) ________
manager.
A) geocentric
B) ethnocentric
C) innovative
D) open-minded
E) polycentric
25) ________ is another word for ethnocentrism.
A) Geocentrism
B) Ecocentrism
C) Parochialism
D) Open-mindedness
E) A flexible management style
26) Henry, a regional manager for a global corporation, is meeting with several upset managers
from the Rome plant about Michael, who is originally from Texas but moved to Italy to manage
the Rome facility. Antonio, the assistant manager, tells Henry, “We all feel that Michael sees
things only one way—his—and very seldom considers our perspective on things.” Michael is
employing a ________ management style.
A) traditional
B) ecocentric
C) geocentric
D) polycentric
E) parochial
27) Betsy, the vice president of sales for an international organization, believes that employees in
her foreign offices understand best how to handle the personnel and practices in their offices. So
when the corporate HR manager approached Betsy about reprimanding Francois, a native Parisian
who is the Paris office manager, for not doing things according to corporate policy, Betsy backed
Francois and said, “I believe that the home office should leave Francois alone because he best
understands the local culture.” Betsy is a(n) ________ manager.
A) ethnocentric
B) global
C) native
D) polycentric
E) parochial
28) Pietro, the vice president of marketing, is talking to Ryan, a sales manager in a foreign office,
about several local situations that Ryan’s reps are facing in their territory. Pietro tells Ryan that he
believes there are differences and similarities between home and foreign personnel and practices,
and that Ryan should use whatever techniques are most effective. Pietro is a(n) ________
manager.
A) parochial
B) ethnocentric
C) global
D) geocentric
E) polycentric
29) Based on the text, many companies are interested in expanding globally in order to
A) gain access to supplies, new markets, and lower labor costs.
B) gain access to natural resources, new markets, and a diverse workforce.
C) implement tariffs and import quotas.
D) utilize export embargoes to increase business.
E) increase the diversity and creativity of their workforce.
30) ________ are Mexican manufacturing plants with low labor costs that give special privileges
to their American owners in return for employing Mexican citizens.
A) Diversedoras
B) Barteristas
C) Globalists
D) Internationaladoras
E) Maquiladoras
31) Airbus Inc., a company that builds airplanes, typically orders parts for its airplanes from other
companies. ________ is the practice Airbus Inc. is using.
A) Countertrading
B) Bartering
C) Trading
D) Outsourcing
E) Diversifying
32) Kishore owns an international grocery store, the Global Market, where customers can purchase
foods and canned goods from other countries. Global Market is an example of a company that
A) exports.
B) globalizes.
C) inputs.
D) imports.
E) countertrades.
33) Wendy’s Truffles makes quality desserts and sells its products to customers in other countries.
Wendy’s Truffles is ________ its products.
A) bartering
B) countermarketing
C) exporting
D) dumping
E) importing
34) In exchange for $1,000 of office supplies, Anthony’s IT Services uses ________ to install new
network computers and printers at no cost to Quality Office Supply.
A) outsourcing
B) sourcing
C) inputting
D) countertrading
E) importing
35) Countertrading is ________ goods for goods.
A) outsourcing
B) sourcing
C) bartering
D) selling
E) licensing
36) A company is licensing its products when it
A) allows another company to pay it a fee to train its employees.
B) allows a foreign company to pay it a fee to make or distribute the first company’s product or
service.
C) pays a competitor a fee to stop the competitor from selling its products in the company’s
territory.
D) develops a strategic plan for another organization.
E) barters goods for goods in lieu of a monetary payment.
37) Pinetops Resorts, an American company, sells the rights to other hospitality companies
globally to open resorts with the Pinetops name for a fee and a share of the profit, in return for
using Pinetops’ brand name and a package of materials and services. Pinetops is engaged in
A) franchising.
B) importing.
C) offshoring.
D) exporting.
E) countertrading.
38) Alpha Computing is a U.S. company that specializes in IT research. It has formed a joint
venture with Microchips Inc., a Belgium organization that has a reputation for producing quality
PCs. The two companies will work together to market laptops in China, sharing the risks and
rewards of starting the new enterprise together. Alpha Computing and Microchips Inc. are partners
in a(n)
A) strategic alliance.
B) global strategy.
C) export strategy.
D) import strategy.
E) franchising strategy.
39) Sometimes a country’s laws forbid foreigners from owning a business in the nation. In the
presence of such laws, a(n) ________ is one way for an American company to have a presence in
that foreign country.
A) export agreement
B) MBO pact
C) import agreement
D) 50/50 ownership split
E) joint venture
40) Luke is the owner of Fun Times, a U.S. event-planning company. He plans to open an
event-planning company, Events & Adventures, in Germany. Events & Adventures will be totally
owned and controlled by Fun Times, which makes Events & Adventures a ________ of Fun
Times.
A) joint venture
B) total investment agreement
C) strategic alliance
D) wholly owned subsidiary
E) maquiladora