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81) There are many positive effects to globalization, but which of the following would be a
negative effect?
A) data sharing
B) cultural intermingling
C) mass communication
D) speedy transportation
E) cheaper products
82) Madeline wants to be the best manager. She knows what it means to manage her staff and she
knows the right way to do it. She also wants to be cautious that she does not put herself in the
position that it is her way or no way. What type of manager is Madeline aspiring to be?
A) ethnocentric
B) polycentric
C) parochial
D) geocentric
E) synergistic
83) Simply Imagine wants to grow their company but is hindered by increasing labor costs and
import quotas. Simply Imagine should consider becoming a(n)
A) franchiser.
B) countertrader.
C) multinational.
D) strategically.
E) wholly owned subsidiary.
84) Which trading bloc has the goal to reduce tariffs by 75 percent and achieve full economic
integration?
A) NAFTA
B) ASEAN
C) CAFTA-DR
D) Mercosur
E) APEC
85) As you prepare to work in a global economy, what will help you to more effectively
communicate with and influence others?
A) context
B) religion
C) language
D) interpersonal cues
E) time orientation
86) Qatar earned the rank of first place in terms of gross domestic product because they
A) ignored the rise of the global village.
B) embraced the idea of many national markets.
C) were the last country to openly trade, thereby learning from the others.
D) took advantage of the world becoming one market.
E) did not showcase themselves allowing them to rise without notice.
87) As the owner of a small business, Sally would like to move the sale of her candles from
storefronts to the Internet. Why is it possible for her to so easily make that move for the success of
her business?
A) The Internet and the World Wide Web are not for everyone. Small companies struggle to get
started and move slower.
B) The Internet and the World Wide Web allow almost anyone to be global, with two varying
results: Small companies can get started more easily but move slower.
C) The Internet and the World Wide Web allow almost anyone to be global, with two important
results: Small companies can get started more easily and can maneuver faster.
D) The Internet and the World Wide Web allow few to be global. Small companies struggle to get
started but once started can maneuver faster.
E) The Internet and the World Wide Web allow almost anyone to be global, with differing
important results: Small companies struggle to get started yet, they can maneuver faster.
88) Over the last two years, an American clothing manufacturer has partnered with a manufacturer
in China to make clothes at a cheaper cost. How is this beneficial to both countries?
A) It is a strategic alliance in which two countries share the risks and rewards of starting a new
enterprise together in a foreign country.
B) It is a wholly owned subsidiary in which a foreign subsidiary is totally owned and controlled by
an organization.
C) It is a greenfield venture in which owning the organization has been built from scratch.
D) It is an example of a franchise in which a company allows a foreign company to pay it a fee and
a share of the profit in return for using the first company's brand name and a package of materials
and services.
E) It is an example of countertrading in which the country is bartering for goods.
89) How are tariffs on oil different from tariffs on solar panels and washing machines?
A) Protective tariffs are designed simply to raise money for the government, such as the tariff on
oil. Revenue tariffs are designed to raise the price of imported goods to make the prices of
domestic products more competitive, such as the tariff on solar panels and washing machines.
B) Revenue tariffs are designed simply to raise money for the government, such as the tariff on
solar panels and washing machines. Protective tariffs are designed to raise the price of imported
goods to make the prices of domestic products more competitive, such as the tariff on oil.
C) Revenue tariffs are used to set the import quota, such as the tariff on oil. Protective tariffs are
used to deter dumping, such as the tariff on solar panels and washing machines.
D) Revenue tariffs are used to deter dumping, such as the tariff on oil. Protective tariffs are used to
set import quotas, such as the tariff on solar panels and washing machines.
E) Revenue tariffs are designed simply to raise money for the government, such as the tariff on oil.
Protective tariffs are designed to raise the price of imported goods to make the prices of domestic
products more competitive, such as the tariff on solar panels and washing machines.
90) Marco is from the Mediterranean coast of Greece and Forough is from Iran. While visiting
their grocery store, you notice that they are helping one customer find an item, another customer
checkout, as well as mopping up a spill, and restocking a shelf How would you describe Marco and
Forough's use of time?
A) polychronic
B) monochronic
C) cultural
D) interpersonal
E) systematic
91) This question has two parts; be sure to answer both. First, define the concept of global
economy. Second, explain the three historic global changes, discussed by Rosabeth Moss Kantor
of the Harvard Business School, that set the stage for globalization.
92) The city of Cincinnati, California, is an industrial town known for its production of
high-quality computers. In addition, the management of an automobile manufacturing plant in
Cincinnati, which employs over 2,000 employees, is considering closing and moving its
operations to Mexico to save money. Discuss the positive and negative effects of the global
economy on Cincinnati, California, and other communities in America.
50
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Difficulty: 3 Hard
Topic: Global Economy
Learning Objective: 04-01 Identify three influential effects of globalization.
Bloom's: Analyze
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
93) This question has two parts; be sure to answer both.
First, contrast a multinational corporation and a multinational organization, and explain why a
global mind-set is essential in working in a globalized world.
Next, consider these two companies: (1) Voice of the Reader recruits volunteers, often actors and
actresses, who read books out loud, in many different languages, so that they can be put onto
electronic media, such as CDs. Voice of the Reader then distributes these books for free to blind
people across the world. For example, books on CD in French go to France, Canada, and Haiti;
books on CD in Spanish go to Spain and many of the countries of South America; books in
Portuguese go to Portugal and Brazil. Voice of the Reader does not seek a profit, and it has small
recording studios in many countries, where actors read the books out loud. (2) Blazing Glory is a
role-playing game that is played with simple cards that look like baseball cards. Each card has a
mythical figure, as well as multiple symbols that explain how the game can be played. Because
there is no writing on the cards, the market is fully global—no translations or adaptations are
required. The company that created Blazing Glory is now manufacturing and selling its cards
throughout the developed world, and it has hired game creators in multiple countries, including
Brazil, China, and India, to develop games that will appeal to the local markets.
Which of these companies is a multinational corporation, and which is a multinational
organization? How do both companies benefit from a global mind-set? Explain.
94) This question has two parts; be sure to answer both.
First, contrast ethnocentric, polycentric, and geocentric managers.
Next, imagine the following situation: You work for a multinational hotel chain. The hotel, which
has its corporate headquarters in the United States, has a policy of delighting and surprising its
guests by making them feel extremely welcome. Corporate has a policy that the housekeepers will
leave a yellow daffodil on each guest's bed while cleaning the rooms during the day. However,
managers at the French and German hotels have objected to this policy. The French managers say
that yellow has connotations of jealously, betrayal, weakness, and contradiction in France. In the
10th century, the French painted the doors of traitors and criminals yellow. The German managers
say that yellow symbolizes jealousy in Germany. These managers would rather leave a different
type of flower for their guests.
How would an ethnocentric manager respond to the individual hotel managers' requests? How
would a polycentric or geocentric manager respond?
95) This question has two parts; be sure to answer both.
First, describe the five benefits for companies of expanding internationally.
Second, imagine that you are the CEO of REDO, a highly successful company that remodels and
redecorates houses in the United States. The company also manufactures its own line of furniture,
draperies, and home furnishings. Give an example of at least one way REDO might take advantage
of each of these benefits.
54
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 04-03 Outline the ways in which companies can expand internationally.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
96) Kyle, who owns a broom and mop factory, is considering global outsourcing. Using the
definitions of global outsourcing and maquiladoras, describe the pros and cons for Kyle to
consider before he makes his decision final.
97) The United States has utilized tariffs, import quotas, embargoes, and sanctions over the years.
Explain why America has used these and give an example of each.
98) Discuss the purpose of each of these organizations: The World Trade Organization, World
Bank, and International Monetary Fund.
99) What is NAFTA? In your description of NAFTA include the following: which nations belong
to NAFTA, its purpose, its benefits, and its issues.
100) This question has two parts; be sure to answer each one.
First, what was the purpose of the GLOBE project, and what are its nine dimensions?
Second, assume that you are managing a U.S. business that wants to export furniture to Russia,
Sweden, or Singapore. Describe how you would use results from the GLOBE project to negotiate a
deal to deliver a new line of furniture to distributors in one of these countries.
101) You are a new manager in your company's office in Chile. Describe how you will plan for and
run your first staff meeting.
102) David has been assigned to work in Japan next month. He does not have lot of time to prepare
for the move. He knows that in the office English is spoken, but he wants to fit in socially as well.
Describe a few things he can do in this short amount of time to prepare himself for this big
transition.
