Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
1
Instructor Manual
Chapter 3: Managing Diversity in a Global Environment
Work Application Sample Answers
Most of the answers are actual student answers or based on student answers. You may give
these answers as part of your lecture before, after, or in place of getting student answers.
3-1. Classify a business you work for or have researched as domestic, international, or
multinational. If the business is international or an MNC, list some of the countries in
which it does business.
3-2. Do you try to buy American products? Should you?
I don’t try to buy American. I look for the best product and price. No. Why should I buy
3-3. Give an example of how a domestic company benefits from trade barriers.
3-4. Would you be willing to pay more for the same product made domestically than
abroad? For example, if Nike made sneakers in America and sold them for $125 and
made them abroad and sold them for $100, which would you buy?
Heck no. I want the low price to save me money.
3-5. Explain how diversity is important to your current or past workplace.
3-6. First state the types of diversity where you work(ed). Next, describe how it has
affected you personally by being discriminated against, including being unfairly treated
through being criticized or excluded in some way for being different in some way from
the others.
In my department we have nine people. Ages range from around 35 to 65, there are seven
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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3-7 Describe a company’s policies and practices for promoting diversity, preferably a
business you work(ed) for.
In my company we do yard work, and the majority of the employees are of minority groups,
3-8. Give an example of cultural diversity you encountered, preferably at work.
I work in a U.S. factory. We have many Hispanics working there. Some can hardly speak
3-9. How do you feel about taking an international assignment? What countries would
be more appealing to you?
I’d like to go one of the major European countries, especially England because they speak
3-5. Select a business and identify how it uses global sourcing and/or importing and
exporting.
I work for Bit Y supermarket and it imports produce from all over the world to have fresh
stuff all year long.
3-6. Select a business you buy from that has a global license or franchise.
3-7. Select a business you buy from that used contract manufacturing to make your
product.
3-8. Select a business that uses strategic alliances, joint venture, and/or direct
investment globally.
3-9. Select a company and identify as many of its global business practices as you can.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
Amazon.com uses global sourcing of its books and other items it sells by having UPS deliver
Review Question Answers
3-1. How are businesses classified in the global village?
3-2. What are the four trade barriers?
The four trade barriers include embargos, quotas, subsides, and tariffs.
3-3. What is the role of the World Trade Organization?
3-4. What are the six major trade agreements?
3-5. Which country has the foreign trade advantage based on exchange rates?
The country with the weak currency has the advantage in foreign trade.
3-6. What is the difference between diversity and affirmative action?
Affirmative action is purposeful steps to create employment opportunities for minorities and
3-7. What is the glass ceiling?
The glass ceiling is the invisible barrier that prevents women and minorities from advancing to
the top jobs in organizations.
3-8. When dealing with people with disabilities, what should be the focus?
3-9. What are three practices used to promote diversity?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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3-10. What are the five dimensions of Hofstede’s Cultural Diversity?
Power distance inequality versus power equality, individualism versus collectivism,
3-11. What is GLOBE?
3-12. What are the nine dimensions of Project GLOBE?
3-13. What is the difference between a license and a franchise?
In licensing, a licensor agrees to give a licensee the right to make its products or services
3-14. What is the difference among a strategic alliance, joint venture, and direct
investment?
A strategic alliance is an agreement to share resources that does not necessarily involve
3-15. What do international and multinational companies have in common?
They both should think globally but act locally by adapting products and services to the needs
of the local marketplace.
3-16. If you were to start your own small business, would you most likely use contracting,
strategic alliances, joint ventures or direct investment?
As discussed, small businesses are commonly international and are more likely to use
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
Communication Skills Answers
3-1. How does globalization affect your life and that of your family and friends?
Answers will vary.
3-2. Should people in the United States make an effort to buy products made in
America? If so, how should “made in America” be defined?
3-3. Should your home country drop all or some of its trade barriers?
3-4. Is the North American Free Trade Agreementof more benefit or harm to the
United States? Why?
3-5. Should there be one global trade agreement rather than the six major
agreements?
Answers will vary.
3-6. Should countries with a trade deficit create barriers to trade to eliminate the
deficit?
Trade barriers tend to lead to retaliation by the other country, and running a trade deficit can
3-7. Overall, are the effects of foreign trade more positive or negative for your home
country?
Answers will vary, but as stated in the textbook, it should be positive for most people. However,
3-8. How does diversity effect you personally? Do you really value diversity?
3-9. What experience have you had with each of the diverse groups?
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Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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I’ve had to work with people of all ages, both males and females but mostly males, my best
3-10. How can you improve your awareness and empathy for diverse groups?
3-11. Identify mentors you have had in your life (relatives, friends, teachers, coaches,
managers) and how they helped you to succeed. Also, will you seek out a mentor(s) to
help you advance in your career?
3-12. Should expatriates be given global cultural diversity training, and should their
families get training too?
At the cost of a $1 million for a three-year international assignment, and with family adjustment
3-13. Is it too difficult and time consuming to engage in global sourcing?
Not really. With the Internet, searching with technology is worth it because you can find the
best deal globally.
3-14. Are smaller international companies at a disadvantage when competing with large
MNCs?
Answers will vary, but generally the answer is yes and no. Internationals don’t have the
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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Applying the Concept Answers
Applying the Concept 3-1: Trade Barriers
Identify the dimension of cultural diversity exemplified by each statement.
A. Embargo
1. It’s not fair. The Chinese government is giving grants to its domestic businesses.
C. Subsidies. Grants are one of the forms of subsidies.
2. The Japanese government will not let us export any cars.
3. The Korean government is raising our prices by place a tax on our exported cars.
4. The South African government will only let us export 100 cars a year
Applying the Concept 3-2: Diversity Stereotypes
Identify the negative stereotype that tend to leads to discrimination.
A. Age and generation
5. They are too emotional and moody monthly to be good managers
B. Gender. This statement refers to women.
6. It’s not fair to let Muslims’ take extra breaks and have their own prayer room.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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7. I just don’t feel comfortable around the guy with a missing leg.
8. The only reason Joe hired the dumb blond was for her good looks.
F. Other-attractive. Dumb blond is a negative stereotype of women (a gender), but she got the
9. You can’t teach an old dog new tricks. Even though he has a lot less experience, teach
him to run the new high tech machine.
A. Age. It is a myth that older workers don’t want to learn, and can’t learn, new things.
10. You know those people just don’t have the motivation to get a good education and
advance.
Applying the Concept 3-3: GLOBE Dimensions
Identify the dimension of cultural diversity exemplified by each statement.
A. Assertiveness
11. The people in this country have one of the highest savings rates in the world.
F. Societal collectivism. The preferred sports are team sports rather than individual sports.
12. Managers throughout organizations in this country focus on getting the job done
through teamwork.
13. People in this country are known to be difficult to negotiate with.
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Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
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14. In some companies in this country, the male managers go around kissing the female
employees good morning; and the women get the coffee for the male managers.
15. The people in this country follow the football/soccer team closely as they take great
satisfaction from watching their team in the World Cup.
16. Managers place great importance on status symbols such as having the executive
dining room, reserved parking spaces, and big offices.
E. Power distance. Status symbols like separate dinning and parking represent and show
power distance.
17. Managers don’t really care about the safety of their employees and provide poor
working conditions.
18. Employees get nervous and stressed when they even hear that changes are coming.
194. Employees focus on constant small changes to make the products and processes
better.
Applying the Concept 3-4: Global Practices
Identify each practice as more likely to be used by large or small global companies:
A. Large MNCs
B. Small international companies
20. Companies that develop a product in one country and then bring the product to
other countries.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
21. Companies that only import and/or export to operate globally.
B. Small international companies. They don’t have the resources to have their own facilities in
22. Companies that have foreign nationals among their top-level managers.
A. Large MNCs. They have foreign nationals running direct investment facilities.
23. Companies that make their products in other countries.
24. Companies that develop the latest technology through R&D.
Applying the Concept 3-5: Forms of Global Business
Identify which activity or form of global business is described in each statement.
A. Global sourcing
25. Springfield College offers a master’s degree program in Israel at the Health and
Behavioral Sciences College, which provides the facilities and administrative support.
E. Joint venture and strategic alliances. This is a strategic alliance, which is a form of
26. Philips in France makes TVs using speakers from Japan.
27. Tires R Us in the United States buys tires from Bridgestone in Japan for retail sale.
28. Chinese Alibaba buys a warehouse in America to distribute online orders in the
United States.
Instructor Resource
Lussier, Management Fundamentals 8e
29. The American Children’s Television Workshop gives a Chinese company the right to
make its Sesame Street character puppets.
C. Licensing. Licensing involves allowing another country the right to use an asset.
30. Whirlpool makes its appliances in its factory in Russia.
31. Dell assembles its computers in the United States and sells them online to people
globally.
B. Exporting/importing. Selling computers in another country and shipping them is exporting.
32. Costco has a Canadian company make some of its Kirkland brand items for sale in
its U.S. stores.
33. Wilson Sporting Goods buys the rubber for tennis balls from Brazil.
34. McDonald’s makes a deal with an Italian businessperson to open a McDonald’s in
Rome.
Join the Discussion Answers
Join the Discussion 3-1: Buy American
You most likely have heard the slogan “Buy American.” Many labor unions urge Americans
to buy products made in the United States, because that helps retain jobs for American
workers. On the other hand, some Americans ask why they should buy American products if
they cost more or their quality or style is not as good as that of foreign-made products. But as
you’ve seen, it isn’t always easy for consumers to know the country of ownership of many
products they buy.
1. Is it ethical and socially responsible to ask people to buy American?
2. Is it ethical and socially responsible to buy foreign products?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
Join the Discussion 3-2: Speaking English
The United States was once known as the “melting pot,” as people from all over the world
came to the country and adjusted to its culture. In the past, generally, immigrants had to learn
English to get a job. Today, however, many organizations hire people who can’t speak
English, and they use translators and have policies written in multiple languages for these
employees. Government agencies at the federal, state, and local levels are also providing
translators and written materials in other languages.
1. Why are some organizations no longer requiring workers to speak English?
2. Should a worker be required to be able to speak English to get a job in the United
States?
3. Is it ethical and socially responsible to (or not to) hire people who can’t speak English
and to provide translators and policies written in multiple languages?
Join the Discussion 3-3: File Sharing
Since the early 2000s, some peer-to-peer file-sharing networks and services have been
targeted by music companies and an industry watch group, the Recording Industry
Association of America, which represents musicians, for copyright infringement and shut
down. The music companies complain that they are losing profits and that musicians are
1. Is it ethical and socially responsible for file-sharing companies to give people the
means to download music, movies, or software for free?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
2. Is it ethical and socially responsible for people to download music, movies, or
software for free, which prevents recording, film, or software companies and artists
from getting any royalties?
3. Is it ethical and socially responsible for countries to ignore and even resist enforcing
copyright laws? Should all countries enforce copyright laws?
Join the Discussion 3-4: Bribes
An American businessperson working in a foreign country complained to a local telephone
manager that the technician showed up and asked for a bribe before installing the phone. The
businessperson refused, so the telephone worker left without installing the phone. The
telephone company manager told the businessperson that the matter would be investigated,
for a fee (bribe).
1. Is it ethical and socially responsible to pay bribes?
2. Should the businessperson have paid the bribe to get the phone installed?