Global Management And Cultural Diversity Test Bank Docx Ch.5 - Management Canada 5e | Complete Test Bank by John R. Schermerhorn Jr. DOCX document preview.
CHAPTER 5
GLOBAL MANAGEMENT AND CULTURAL DIVERSITY
Question type: True/False
1) The growing interdependence among elements of the global economy is known as diversification.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
2) Global managers must keep informed about international developments and be able to understand and relate to people with diverse cultural backgrounds.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
3) In World 3.0, local needs and priorities are largely ignored compared to the economic gains from global integration.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
4) Cultural awareness is an important characteristic of a truly global manager.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
5) Sigma Inc. conducts for-profit transactions of goods and services across national boundaries. Sigma Inc. is an example of an international business.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
6) Businesses expand their operations to the international marketplace in order to increase profits and gain access to customers, suppliers, capital, and labour.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
7) A benefit to an organization going global is economic development of the host economy.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
8) A common first step into international business is global sourcing.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
9) Global sourcing, exporting/importing, and licensing/franchising are market-entry strategies for conducting international business.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
10) Most manufacturers today shy away from using global sourcing due to growing concerns over quality issues.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
11) Reshoring is when an organization moves more manufacturing and jobs to a foreign country.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
12) Because the growth of export industries creates jobs, governments willingly give advice and assistance to businesses trying to grow their export capabilities.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
13) Importing enables a company to enter the international market by selling locally-made products in foreign markets.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
14) A licensing agreement is a form of international business through which a foreign company pays a fee for the rights to manufacture or sell another firm’s products in a specified region.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
15) A franchise is a type of business in which a local firm pays a foreign firm a fee for the rights to make and/or sell the foreign firm’s products.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
16) Joint ventures and franchising are direct investment strategies for conducting international business.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
17) Direct investment strategies require major capital commitments and create rights of ownership and control over foreign operations.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
18) Insourcing is the process of creating jobs through foreign direct investment.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
19) In a joint venture, a foreign firm buys the rights to use another’s name and operating methods in its home country.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
20) A global strategic alliance can provide new market access and expertise to the local or host partner.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
21) A foreign direct investment is building, buying, or buying part ownership of a business in another country.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
22) A foreign subsidiary is a foreign operation completely owned and controlled by a local firm.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
23) A foreign subsidiary represents the lowest level of involvement in international operations.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
24) Any company doing business abroad is not necessarily required to abide by local laws, but by their home country laws.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
25) Political risk is the potential loss in value of a foreign investment due to instability and political changes in the host country.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
26) Most global firms use a planning technique called a political risk analysis to forecast political disruptions that can threaten foreign investments.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
27) The World Trade Organization (WTO) is a global institution that was established to promote free trade and open markets around the world.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
28) The World Trade Organization uses tariffs and quotas to protect favoured nations from foreign competition.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
29) The most favoured nation status allows a nation to choose one other nation to get special treatment regarding quotas and tariffs.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
30) Tariffs are essentially a tax imposed by governments on imports.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
31) The goal of most tariffs is to protect local firms from foreign competition.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
32) NAFTA was recently replaced with the CUSM agreement.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
33) Protectionism is used by the members of the European Union to restrict business and government procurement of goods and services from foreign competition.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
34) The United States-Mexico-Canada (USMCA) agreement largely frees the flow of goods and services, workers, and investments between the U.S. and Canada, while limiting them between the United States and Mexico.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
35) The European Union (EU) is an alliance of European countries that agree to promote mutual economic growth by removing barriers that previously limited cross-border trade and business development.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
36) The European Union is a group of European countries that have common trade and customs laws that facilitate the free flow of workers, good and services, and investments across national boundaries.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
37) The expected benefits of a common European currency include higher productivity, lower inflation rates, and steady growth in the member countries.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
38) While part of the European Union, Great Britain adopted the Euro as its official currency.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
39) APEC was established to promote free trade and investment in European countries.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
40) The Asia Pacific Economic Forum (APEF) consists of 27 countries that agree to support economic growth and development by removing trade barriers.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
41) SADC links 14 countries of Southeast Asia in trade and economic development efforts.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
42) Global corporations are also referred to as multinational corporations and transnational corporations.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
43) The Domestic Density Index measures a corporation’s percentage of sales, employees, and shareholders that are domestic in the home country.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
44) Executives of transnational corporations view the entire world as their domain for acquiring resources.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
45) Transnational corporations have a domestic perspective yet operate across borders and make multinational decisions.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
46) Transnational corporations seek integration of their operations, operating across borders without home-based prejudices, and making major decisions from a global perspective.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
47) When large multinationals gain disproportionately from the forces of globalization, while smaller firms and countries do not, there occurs what is referred to as a “globalization gap.”
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
48) Technology transfer, capital development, increased employment opportunities, and the development of local resources are benefits that host countries can obtain from relationships with multinational corporations.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
49) Extraction of excessive profits by global corporations is a potential host-country cost.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
50) Host-country complaints about multinational corporations (MNCs) include foreign exchange restrictions, pressure to buy raw materials at inflated prices, failure to protect intellectual property, and failure to uphold contracts.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
51) Multinational corporations are often criticized at home for diverting labour-intensive jobs from the domestic labour force to foreign labour markets, diverting capital investments away from the domestic market, and encouraging corrupt practices in their foreign subsidiaries.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
52) The Corruption of Foreign Public Officials Act (CFPOA) makes it illegal for Canadian firms and their representatives to engage in corrupt practices overseas.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
53) The use of child labour has been effectively eliminated as an ethical issue that faces managers of MNCs.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
54) Long hours of work and poor working conditions are prevalent in sweatshops.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
55) Culture is the shared set of beliefs, values, and patterns of behaviour common to a group of people.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
56) Culture shock is the tendency to view one’s culture as superior to other cultures.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
57) Culture shock is the confusion or discomfort that someone may experience when in an unfamiliar culture.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
58) Nigel is very proud of his British culture and tends to view other cultures as potentially inferior to his own. This is an example of ethnocentrism.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
59) Ethnocentrism is the confusion or discomfort that someone may experience when in an unfamiliar culture.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
60) Knowledge about foreign cultures is known as cultural intelligence.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
61) Self-awareness and reasonable sensitivity are the basic building blocks of cultural intelligence.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
62) The silent language of culture refers to the common practices and beliefs that are similar across different cultures.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
63) High-context cultures are those in which most communication takes place via the spoken or written word. Low-context cultures are those in much communication takes place through nonverbal and situational cues in addition to the written or spoken word.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
64) In low-context cultures, contracts tend to be viewed as binding agreements; in high-context cultures, written contracts continue to emerge and are modified as the parties work together.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
65) In high-context cultures, what is actually said or written may convey only part, and sometimes a very small part, of the real message.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
66) Most communication in low-context cultures takes place via the written or spoken word.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
67) Members of monochronic cultures are more flexible in their views of time than those of polychronic cultures.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
68) In monochronic cultures time is used to accomplish many different things at once.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
69) In polychronic cultures people tend to do one thing at a time.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
70) Members of polychronic cultures do not approve of coming late or bringing an uninvited guest.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
71) Proxemics is the study of how people use space to communicate.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
72) In terms of proxemics, Japanese culture places little emphasis on how space is used or managed.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
73) Tight cultures are characterized by clear and rigid social norms.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
74) In a tight culture, deviations from norms tend to be tolerated.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
75) The Asian proverb “The nail that sticks up will be hammered down” is indicative of a loose culture.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
76) The importance of Hofstede’s research lies in drawing attention to the impact that differences in national culture have on international management.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
77) The five cultural dimensions identified by Hofstede are power distance, uncertainty avoidance, individualism-collectivism, masculinity-femininity, and time orientation.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
78) The ecological fallacy refers to the belief that a generalized cultural value, such as individualism, does not apply equally to all members of that culture.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
79) The power dimension in Hofstede’s framework is defined as the degree to which a society encourages individual autonomy to make decisions versus depending on others for direction.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
80) People in high-power-distance cultures tend to be tolerant of power and are prone to follow orders.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
81) In Hofstede’s framework for comparing national cultures, individualism-collectivism concerns the degree to which a society values assertiveness and material concerns versus greater concerns for human relationships and feelings.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
82) People in high uncertainty-avoidance cultures prefer structure in their lives.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
83) The masculinity-femininity dimension of Hofstede’s study of national cultures refers to the degree to which men and women differ in the way they deal with risk, change, and dealing with situational uncertainty.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
84) According to Hofstede’s framework for comparing national cultures, time orientation refers to the degree to which a society focuses on short-term considerations versus planning for the future.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
85) Comparative management demonstrates that management practices are the same across countries and cultures.
Learning Objective 5.4: Identify the benefits of global learning for management and organizations.
Section Reference 5.4: Global Management Learning
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
86) Intercultural competencies are skills that help an individual to function successfully in cross-cultural situations.
Learning Objective 5.4: Identify the benefits of global learning for management and organizations.
Section Reference 5.4: Global Management Learning
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
87) Hofstede’s research supports his conclusion that management practices are universal.
Learning Objective 5.4: Identify the benefits of global learning for management and organizations.
Section Reference 5.4: Global Management Learning
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
88) To promote global organizational learning, organizations and their members should be alert, open, inquiring, and cautious regarding the potential merits of management practices found in other countries and how they are affected by cultural variables.
Learning Objective 5.4: Identify the benefits of global learning for management and organizations.
Section Reference 5.4: Global Management Learning
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
89) The three pillars of intercultural competency are perception management, self-management and relationship management.
Learning Objective 5.4: Identify the benefits of global learning for management and organizations.
Section Reference 5.4: Global Management Learning
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
Question type: Multiple Choice
90) The worldwide interdependence of resource supplies, product markets, and business competition characterizes a ___.
a) Trans-Asian management
b) the European Union
c) free trade
d) a global economy
e) the multinational economy
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
91) Globalization is characterized by the ___.
a) worldwide dependence of resource supplies, product markets, and business competition
b) worldwide independence of resource supplies, product markets, and business competition
c) worldwide interdependence of resource supplies, product markets, and business competition
d) worldwide distribution of resource supplies, product markets, and business competition
e) worldwide exploitation of resource supplies, product markets, and business competition
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
92) Which of the following is an effect of globalization?
a) reducing cooperation among nations in the global economy
b) weakening economic integration across countries
c) reducing interdependence among the components in the global economy
d) increasing the importance of nation states
e) creating a borderless world where economic integration becomes extreme
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
93) Balancing global integration gains with local needs and priorities is a challenge for.
a) Management
b) Multinational corporations
c) National leaders
d) All of the above
e) None of the above
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
94) ___ involves managing business and organizations with interests in more than one country.
a) Global management
b) Territorial management
c) Reshoring
d) Insourcing
e) Economic development
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
95) Which of the following is a common reason for conducting business on an international level?
a) reducing imports
b) accessing lower-cost labour
c) boosting domestic demand
d) establishing market monopoly
e) promoting ethnocentrism
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
96) Which of the following is not a reason a company will go international?
a) profits.
b) customers.
c) suppliers.
d) capital.
e) weak labour laws.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
97) The global manager is a person who ___.
a) is comfortable speaking several different languages
b) is quick to find opportunities in unfamiliar settings
c) is able to utilize economic, social, technological, and other forces for the benefit of the organization
d) has experienced culture shock
e) culturally aware and informed on international issues
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
98) Global sourcing, importing/exporting, licensing, and franchising are typical ways to begin a ___.
a) global business
b) cross-cultural intrapreneurship
c) transborder entrepreneurship
d) non-government organization (NGO)
e) multinational franchise
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
99) ___ meets the needs of the present generation without compromising the ability of future generations to meet their needs.
a) Cultural diversity
b) Sustainable development
c) Environmental protection
d) ISO 9000
e) Intergenerational collaboration
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
100) The process of purchasing materials, component parts, or business services from different countries around the world is known as ___.
a) exporting/importing
b) licensing
c) global sourcing
d) direct investment
e) joint venture
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
101) The goal of ___ is to take advantage of international wage gaps and the availability of skilled labour by contracting for goods and services in low-cost foreign locations.
a) exporting
b) importing
c) licensing
d) global sourcing
e) direct investment
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
102) Robin is planning to expand the family business internationally and is currently in the process of sourcing materials, manufacturing components, and locating business services around the world. Which of the following best describes Robin’s actions?
a) global sourcing
b) insourcing
c) licensing
d) franchising
e) outsourcing
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
103) Which of the following global corporations was downgraded by financial analysts for “moral reasons” once it was determined that a number of its global suppliers were paying low wages to its employees?
a) Nike
b) Honda
c) Cisco
d) Apple
e) Boeing
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
104) Sasha owns and operates Maxim Coffee which grows, harvests and roasts local coffee. Encouraged by the rising sales figures in the domestic market, Sasha decides to sell Maxi Coffee in markets around the world. Which of the following terms is applicable to this business strategy?
a) importing
b) insourcing
c) franchising
d) exporting
e) licensing
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
105) The growth of export industries ___ the exporting country.
a) reduces imports in
b) provides low-cost labour in
c) creates local jobs in
d) increases financial resources for
e) leads to an excess supply of products in
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
106) The importing of products involves ___.
a) buying foreign-made products and selling them in domestic markets
b) contracting to provide managerial and technical service to a foreign concern
c) selling locally-made products in foreign markets
d) making a direct investment in a foreign operation
e) making products and selling them in local or domestic markets
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
107) ___ is a significant pathway to business growth for both individual firms and economies by providing new customer bases and expanded markets for products and services.
a) Importing
b) Exporting
c) Global sourcing
d) Licensing
e) Franchising
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
108) Drew decides to shut down the company’s steel business in Kenya and shift the production back to Canada. The rising labour problems and political disruptions in the host country had led this decision. This method of shifting of business to a native location is called ___.
a) joint venture
b) foreign subsidiary
c) outsourcing
d) franchising
e) reshoring
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
109) When Veriol Inc., a pharmaceuticals company, bought the rights to manufacture and sell Nocturne Pharma’s vitamin supplement, Vita Plus, in Mexico, Veriol Inc. engaged in ___.
a) exporting
b) global sourcing
c) franchising
d) insourcing
e) licensing
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
110) In ___, the foreign firm buys the rights to use another’s name and operating methods in its home country.
a) insourcing
b) franchising
c) global sourcing
d) exporting
e) offshoring
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
111) ___ is a form of international business through which a foreign company pays a fee for the rights to manufacture or sell another firm’s products in a specified region.
a) A franchise
b) A joint venture
c) A strategic alliance
d) A licensing agreement
e) Outsourcing
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
112) A form of licensing in which a foreign firm buys the rights to use another’s name and operating methods in its home country is called ___.
a) a licensing agreement
b) franchising
c) a joint venture
d) outsourcing
e) a strategic alliance
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
113) CNOOC’s one-billion dollar investment in Nexen, a Calgary oil and gas producer, is China’s largest ever successful overseas investment. Chinese state-owned firm CNOOC Ltd. is now officially in control of Nexen Inc. CNOCC’s investment is characterized as a(n)
a) joint venture.
b) global strategic alliance.
c) foreign direct investment.
d) sourcing.
e) long-term investment.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
114) Bailey is considering forming a strategic alliance with a Swiss-based company that promises to market Bailey’s products in several EU countries in exchange for access to the company’s distribution network in Canada and the United States. This strategy will require less investment than a(n)___ strategy.
a) exporting
b) licensing
c) franchising
d) joint venture
e) subsidiary
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
115) A firm that establishes a direct investment in a foreign country through a co-ownership arrangement that pools resources, shares risks, and shares control of business operations is engaging in ___.
a) a licensing agreement
b) a franchise
c) a joint venture
d) an equity alliance
e) outsourcing
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
116) Which of the following is characteristic that experts recommend a firm look for when choosing a joint venture partner?
a) Has a weak local workforce
b) Has a solid profit potential
c) Has an adequate financial standing
d) Has a developing local market
e) Is not necessarily familiar with the firm’s major business
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
117) Which one of the following forms of international business transactions represent investments in a local operation that is completely owned and controlled by a foreign firm?
a) a franchise
b) a multinational corporation
c) management contracts
d) foreign subsidiaries
e) joint ventures
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
118) Which of the following terms is used to describe local job creation that results from foreign direct investment?
a) restructuring
b) franchising
c) offshoring
d) insourcing
e) horizontal integration
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
119) McCain Foods Limited employs over 20,000 people at 57 facilities worldwide, generating over $6 billion in sales. These facilities worldwide are considered ___.
a) foreign subsidiaries
b) regional economic alliances
c) global corporations
d) national corporations
e) regional offices
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
120 A(n) ___is one in which a foreign operation is built entirely new or a firm purchases a local operation in its entirety.
a) greenfield investment
b) franchise
c) multinational corporation
d) a joint venture
e) equity alliance
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
121) When Miriam Inc., a handbag manufacturer headquartered in Canada decided to invest in Japan, it linked up with a Japanese fashion house in order to pool resources, share risks, and operate the new business together. This is an example of ___.
a) a joint venture
b) a foreign subsidiary
c) a greenfield venture
d) diversification
e) product development
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
122) A(n) ___ is a local operation completely owned and controlled by a foreign firm.
a) franchise
b) sweatshop
c) foreign subsidiary
d) global strategic alliance
e) export house
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
123) International businesses face all of the following legal problems except
a) negotiating contracts with foreign parties.
b) handling foreign exchange.
c) intellectual property rights.
d) implementing contracts.
e) real estate purchases for prospective facilities.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
124) China’s laws regarding intellectual property are a major risk when doing business with Chinese organizations. This illustrates a host country’s differences in the
a) complexities in trade agreements.
b) economic alliances.
c) legal and political systems.
d) general environment.
e) business environment.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
125) Foreign companies operating in Canada ___.
a) may encounter quite different laws than they are accustomed to in their home countries
b) must deal with antitrust issues that prevent competitors from regularly communicating with one another
c) must deal with special laws regarding occupational safety and health, equal employment opportunity, and sexual harassment
d) all of the above
e) none of the above
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
126) ___is the potential loss in value of foreign investment due to instability and political changes in the host country.
a) Greenfield investment
b) Political risk
c) Protectionism
d) Global sourcing
e) none of the above
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
127) International businesses face all of the following political risks except
a) terrorism
b) civil war
c) armed conflicts
d) currency devaluation
e) new government systems
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
128) Matata, a Japanese firm that manufactures automobile parts, was running at a loss in its offshore outlet in Mexico due to the governmental and civil disruptions in the country. Thus, it withdrew its business outlets from Mexico. Following the departure of Matata, another Japanese firm, Lui Corporation, entered into business in Mexico. With this decision, Lui Corporation has made itself open to ___.
a) a licensing agreement
b) a regional economic alliance
c) political risk
d) insourcing
e) joint venture
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
129) Foot-O, a local footwear company, has made a payment to the German footwear giant Buirick GmbH to use their excellent method of shoe making. This is an example of ________.
a) franchising
b) insourcing
c) a joint venture
d) a foreign subsidiary
e) a licensing agreement
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
130) A ___ tries to forecast political disruptions that can threaten the value of a foreign investment.
a) break even analysis
b) political risk analysis
c) cost benefit analysis
d) strategic opportunism
e) none of the above
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
131) Members of the World Trade Organization (WTO) agree to give each other the most favourable treatment for imports and exports, which is known as ___.
a) international political kickbacks
b) most favoured nation status
c) global greasing
d) most favoured bribery status
e) the Import/Export Bank
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
132) The role of the World Trade Organization is to ___________.
a) eliminate tariffs and other protectionist policies
b) give member nations favoured nation status
c) eliminate child labour and sweatshops
d) ensure that corrupt business practices are eliminated around the world
e) promote free trade and open markets around the world
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
133) Cases presented before the World Trade Organization for resolution are likely to involve disputes regarding ___.
a) cultural appropriateness
b) restructures
c) cultural distance
d) ecological fallacy
e) tariffs
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
134) ___ are essentially taxes that governments levy on imports from abroad.
a) Excise duties
b) Tariffs
c) Pay-offs
d) Corporate taxes
e) Subsidies
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
135) The goal of most tariffs is to
a) improve present working conditions.
b) protect transnational corporations from political risks.
c) diversify the existing jobs.
d) protect local firms from foreign competition.
e) create jobs for foreign workers.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
136) The political call for tariffs and favourable treatment to help shelter domestic businesses from foreign competition is known as ___.
a) free trade
b) restrictive trade
c) protectionism
d) import regulations
e) export Agreements
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
137) The USMCA agreement (formerly NAFTA) is comprised of ___ linked together through favourable trade and customs laws to facilitate the free flow of workers, goods and services, and investments across national boundaries.
a) Northern European countries
b) African nations
c) the U.S., Mexico, and Canada
d) the U.S. and Canada
e) the U.S., Puerto Rico, and the Caribbean community
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
138) Arguments on the positive side of the USMCA agreement (formerly NAFTA) do not include
a) greater cross-border trade.
b) benefits to farm exports.
c) a common currency.
d) reform of the Mexican business environment.
e) greater productivity of manufacturers.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
139) Which of the following is true with regard to the European Union (EU)?
a) There is an absence of common consensus between the member states of the EU with regard to political integration.
b) All the member states of the EU have adopted the Euro as the common currency.
c) The common currency of the EU is a weak competitor of the U.S. dollar.
d) The EU members are supposed to give one another most favoured nation status.
e) The EU is a regional economic and political alliance of global importance.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
140) The ___ is an economic alliance of 27 European countries.
a) European Unified Countries Pact
b) European Free Trade Organization
c) European International Association
d) European Favoured Nation Agreement
e) European Union
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
141) The European Union is an alliance of European countries that have ___.
a) signed a mutual defense treaty
b) agreed to promote mutual economic growth by removing trade barriers
c) created an international organization to represent the rights and interests of workers
d) formed a political alliance to overthrow hostile governments
e) decided to promote cultural exchanges
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
142) Which of the following are competitive implications for the European Union?
a) free flow of workers, goods and services, and investments across national boundaries
b) each EU country has access to a market slightly smaller than the United States
c) unfavourable trade and customs laws
d) use of trade restrictions and quotas
e) none of the above.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
143) The Asia Pacific Economic Cooperation (APEC) is an economic alliance of ___ members.
a) 21
b) 10
c) 3
d) 27
e) 34
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
144) The ___ links 14 countries of southern Africa in trade and economic development efforts.
a) South African Free Trade Association (SAFTA)
b) South African Community (SAC)
c) South Africa Union (SAU)
d) South Africa Economic Cooperative (SAEC)
e) South African Development Community (SADC)
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
145) A ___ is a multination enterprise (MNE) that operates worldwide on a borderless basis.
a) franchise
b) transnational corporation
c) foreign subsidiary
d) greenfield venture
e) limited liability company
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
146) The best definition of a true global corporation (or MNC multinational corporation) is ___.
a) any firm that does business abroad
b) a business firm that has extensive operations in one foreign country
c) any import/export firm
d) any joint venture with a foreign firm
e) a business that has extensive international operations in more than one foreign country
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
147) Transnational corporations view the entire world as their domain for all of the following except
a) acquiring resources.
b) locating production facilities.
c) marketing goods and services.
d) communicating a brand image.
e) creating the business plan.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
148) A(n)___make major decisions from a global perspective, distributes work among worldwide points of excellence, and employs executives from many different countries.
a) multinational corporation
b) transnational corporation
c) international corporation
d) nondomestic corporation
e) supernational corporation
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
149) The Domestic Density Index gives ratings for all of the following except
a) percentage of domestic sales.
b) percentage of employees that are domestic to the home country
c) nationality of the CEO
d) percentage of domestic investment
e) percentage of shareholders that are domestic to the home country
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
150) When multinational corporations and industrialized nations gain disproportionately from globalization, this is referred to as _________.
a) global mismanagement
b) corruption
c) greenfield
d) globalization gap
e) economic risk
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
151) Which of the following is a potential host-country benefit?
a) smaller tax base
b) interference with the governments
c) economic domination
d) introduction of new industries
e) exploitation of natural resources
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
152) Host countries sometimes complain about the presence of multinational firms (MNCs). These complaints include all of the following except
a) MNCs may dominate the local economy.
b) MNCs may export jobs to other countries.
c) MNCs fail to market products or services needed in the local economy.
d) MNCs may fail to transfer their most advanced technology.
e) MNCs fail to help domestic firms develop.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
153) Home-country criticisms of global firms include complaints about
a) interference with the local government.
b) hiring the most talented local personnel at a high cost.
c) failure to transfer advanced technologies.
d) sending scarce investments capital abroad.
e) poor working conditions for employees.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
154) ___ involves illegal practices to further one’s business interests.
a) Corruption
b) Ethnocentrism
c) Polycentrism
d) Proxemics
e) Ecological fallacy
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
155) The Corruption of Foreign Public Officials Act (CFPOA) makes it illegal for
a) countries who are not members of the EU to invest in Canada
b) Canadian firms to invest overseas in businesses.
c) foreign firms to offer nonmonetary gifts to Canadian officials.
d) foreign firms to offer bribes to Canadian firms.
e) Canadian firms and their representatives to offer bribes overseas.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
156) Which of the following is an example of child labour?
a) a 13-year-old boy accompanying his mother to the carpet factory where she works
b) a 10-year-old boy working in a chemical factory
c) a 10-year-old girl helping her younger brother with schoolwork
d) a 13-year-old boy earning $10 for helping his father pick strawberries
e) a 19-year-old girl working as a salesgirl in the local supermarket
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
157) Which of the following describes sweatshops?
a) local business operations that expand internationally through foreign direct investment
b) arbitrating firms that settle labour disputes between employees and employers
c) business operations that employ workers at low wages for long hours in poor working conditions
d) foreign firms that hire talented local personnel for training others in the host country
e) foreign firms that are engaged in rampant corruption and bribery to gain easy access to the local resource pool
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
158) Which of the following is a characteristic of a sweatshop?
a) poor working conditions
b) high wages
c) low power distance
d) high degree of foreign investment
e) strong ethics
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
159) Which of the following is an example of a sweatshop?
a) Bane & Packhard, an American law firm, opened its branch in Taiwan as part of its business expansion strategy.
b) Rosenberg Inc., a pharmaceuticals company, opened a manufacturing plant in Bangladesh, in an old run-down facility. Rosenberg hired local employees, paid them above the minimum wage, and made them work nine hour days.
c) Patron Wave, an electronic device manufacturing company, housed its employees in a run-down building with limited lighting and no indoor washroom facilities and paid the employees less than minimum wage.
d) Big Sell, a supermarket, sourced its canned fishes from Asia at a far lower price than most of its local competitors.
e) Mammoth InfoTech refused to increase the annual wages of its employees citing poor financial results in the last quarter.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
160) Why are some scarce minerals known as conflict minerals?
a) They bring in greater foreign investments.
b) They are found in abundance.
c) The money from their sales is used to fund armed violence.
d) The source of these minerals is easy to trace back.
e) They are available for a cheap price.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
161) ___ is a shared set of beliefs, values, and patterns of behaviour common to a group of people.
a) Culture
b) Meme
c) Folklore
d) Conduct
e) Morality
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
162) Which of the following is true about culture?
a) Culture is a set of legal codes.
b) Culture is an irrelevant factor in international business.
c) Culture is not common to a group of people.
d) Culture remains static over time.
e) Cultural miscues can be costly in international business.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
163) ___ is the confusion and discomfort a person experiences when in an unfamiliar culture.
a) Cultural appropriation
b) Culture shock
c) Cultural assimilation
d) Cultural relativism
e) Culture phobia
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
164) Culture shock is
a) an extreme amount of hatred and rejection of foreign cultures.
b) an individual’s failure to comply with the codes of his or her culture.
c) an assumption that one’s own culture is superior to that of others.
d) an assumption that one’s own culture is inferior to that of others.
e) a certain level of discomfort a person experiences when in an unfamiliar culture.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
165) One of the new employees at Aubrey’s firm is from Asia and looks lost most of the time and is not interacting well with others in the office. Which of the following terms best describes this new employee’s situation?
a) ethnocentrism
b) self-concordance
c) proxemics
d) culture shock
e) ethical dilemma
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
166) Karsten Bach, a German citizen, decides to visit a friend living in Indonesia after many decades. Having never visited the country before, Karsten feels confused, anxious, uncomfortable, and in need of information and advice during the visit. Karsten is most likely experiencing ___.
a) claustrophobia
b) culture shock
c) cognitive dissonance
d) culturation
e) boredom
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
167) An American executive goes to Yemen to finalize a business deal. Upon meeting the Yemen team, the American hands over the necessary documents to the Yemeni host with his left hand, which Muslims in Yemen consider unclean. Moreover, he refuses to accept the dry fruits that are offered, a behaviour that deeply offends the Yemen team. As a result, the American loses the business deal to an Australian company who was better versed in Yemeni ways. The lack of understanding of ___ is most likely to have resulted in the loss of business for the American executive.
a) the business trends in Yemen
b) Yemeni dress code
c) the business laws in Yemen
d) Yemeni culture
e) the banking system in Yemeni
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
168) Culture shock is experienced in five different stages; which include all of the following except
a) confusion
b) the honeymoon
c) reality
d) anger and irritation
e) major victories
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
169) Which sequence describes the stages that a person goes through in adjusting to a new culture accurately?
a) the honeymoon, confusion, irritation/anger, small victories, and reality
b) small victories, the honeymoon, reality, irritation/anger, and confusion
c) confusion, small victories, the honeymoon, irritation/anger, and reality
d) confusion, irritation/anger, reality, small victories, and the honeymoon
e) the honeymoon, small victories, reality, confusion, and irritation/anger
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
170) The tendency to view one’s culture as superior to any other is referred to as __________.
a) ethnocentrism
b) discrimination
c) prejudice
d) amoral
e) cultural gap
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
171) Which of the following is a trait of ethnocentrism?
a) showing no concern for the cultures of others
b) being eager to adopt the elements of foreign cultures
c) showing a preference for foreign cultural values to one’s own
d) respecting ethnic minorities and their culture
e) failing to comply with the cultural values of one’s own group
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
172) Parker, a Canadian national and university student, was sent to India as part of a cultural exchange program. Upon arrival in India, Parker did not respond to the host who greeted Parker by joining hands with Parker. As well Parker declined the tea that was offered, emphasizing a cultural preference for coffee. Parker felt that Canadian ways and culture were far superior to the ones in the host country. In this scenario, Parker displayed ___.
a) polycentrism
b) idealism
c) ethnocentrism
d) feudalism
e) collectivism
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
173) Cultural intelligence is the___.
a) tendency to consider one’s own culture to be superior to other cultures
b) same as emotional intelligence
c) seven stages that people go through in adjusting to a new culture
d) ability to understand and adapt to new cultures
e) ability to communicate effectively in several languages
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Medium
AACSB: Analytic
174) People with cultural intelligence
a) are flexible in dealing with cultural differences.
b) are uncomfortable with cultural differences.
c) view one’s culture as superior to that of others.
d) view one’s culture as inferior to that of others.
e) are eager to adopt the values of foreign cultures.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Comprehension
Difficulty: Medium
AACSB: Analytic
175) Someone high in cultural intelligence views cultural differences as ___.
a) threats
b) ethical dilemmas
c) learning opportunities
d) moral dilemmas
e) barriers to learning
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
176) Which of the following accurately describe the basic building blocks of cultural intelligence?
a) self-management and respect
b) self-awareness and reasonable cultural sensitivity
c) respect and emotional intelligence
d) diversity leadership and self-awareness
e) emotional intelligence and self-management
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
177) The capacities to listen, observe, and learn are the building blocks of cultural intelligence. These skills and competencies can be developed by better understanding what the anthropologist Edward T. Hall calls the “___” languages of culture.
a) graphic
b) silent
c) transformative
d) spectacular
e) vocal
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
178) The central building blocks of cultural intelligence are ___________.
a) context, time and space
b) listening, observation and learning
c) power, time and space
d) time, observation and learning
e) power, time and observation
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
179) ___ cultures emphasize communication via spoken or written words.
a) High-context
b) Popular
c) High femininity
d) Low-context
e) Monochronic
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
180) People who tend to say or write what they mean and mean what they say belong to ___ cultures.
a) high-context
b) popular
c) low-context
d) mass
e) global
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
181) In ___ cultures, what is actually said or written may convey only part, and sometimes a very small part, of the real message.
a) low-context
b) monochronic
c) polychronic
d) popular
e) high-context
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
182) Which of the following is true with regard to people in high-context cultures?
a) They rely on situational cues as well as on spoken or written words.
b) The main part of the real message is conveyed by what is actually said.
c) Body language is ignored in the communication process.
d) They emphasize the importance of doing one thing at a time.
e) They focus on using time to accomplish many different things at once.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
183) Cultures where it is possible to begin making business deals only after social relationships are established are referred to as ___ cultures.
a) ethnocentric
b) high-context
c) xenocentric
d) polychronic
e) popular
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
184) Monochronic cultures focus on ___.
a) gestures
b) written language
c) social context
d) time
e) space
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
185) In ___, time is used to accomplish many different things at once.
a) polychronic cultures
b) monochronic cultures
c) ethical cultures
d) time dependent cultures
e) sensitive cultures
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
186) In ___ cultures, people tend to do one thing at a time.
a) ethnocentric
b) xenocentric
c) monochronic
d) popular
e) high-context
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
187) Charlie visited one of the Middle East countries to discuss strategic alliance with a client. Charlie noticed that the client hosts wouldn’t mind doing a lot of other things simultaneously during the meeting. Charlie was baffled by the amount of interruptions that took place while interacting with the client. Which of the following terms best describes the culture of Charlie’s client?
a) ethnocentrism
b) polychronic culture
c) tight culture
d) low-context culture
e) transitional culture
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
188) Most businesspeople in North America schedule meetings with specific people and focus on a specific agenda for an allotted time. This is characteristic of a(n) ___ culture.
a) polychronic
b) low-context
c) ethnocentric
d) high-context
e) monochronic
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
189) ___ is the degree to which a society emphasizes short-term or long-term goals.
a) Uncertainty avoidance
b) Power distance
c) Time orientation
d) Time preference
e) Individualism-collectivism
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
190) In ___ cultures, time is used to accomplish many different things at once.
a) polychronic
b) ethnocentric
c) low-context
d) high-context
e) monochronic
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
191) Which of the following is true about members of polychronic cultures?
a) They are known to be punctual without exception.
b) They do only one thing at a time.
c) They are flexible in their views of time.
d) They regard time as the primary focus of business.
e) They have a pre-determined sequence of agenda.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
192) Ashley Bentley, a British executive, decided to meet a client in the latter’s office in Abu Dhabi. Ashley became frustrated when after an initial warm greeting, the client continued to deal with a continuous stream of visitors flowing in and out of the office. Bentley felt the client was not extending the dedicated attention that was deserved. This is because Bentley closely identifies with the ___ cultural values.
a) low-context
b) monochronic
c) high-context
d) xenocentric
e) polychronic
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
193) ___ is the study of how people use space to communicate.
a) Proxemics
b) Kinesics
c) Spacetime
d) Chronemics
e) Vocalics
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
194) Proxemics relates to which of the following aspects of the silent language of culture?
a) nonverbal communication
b) monochronic cultures
c) space orientation
d) context
e) time Orientation
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
195) Which of the following is true about proxemics?
a) It studies the importance of time in the context of business.
b) It emphasizes the importance of gestures in the communication process.
c) It emphasizes verbal communication.
d) It focuses on the use of space in communication.
e) It focuses on the comparative analysis of the cultural traits of different groups.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
196) Ray is currently writing his doctoral thesis, which is a comparative study on the use and treatment of physical space in communication between people across cultures. His thesis is a study on ___.
a) haptics
b) kinesics
c) vocalics
d) chronemics
e) proxemics
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
197) Which of the following describes cultural tightness/looseness?
a) the ability to accept and adapt to new cultures
b) the strength of social norms and tolerance for deviations
c) the confusion and discomfort a person experiences when in an unfamiliar culture
d) the tendency to consider one’s culture superior to others
e) the tendency to rely on nonverbal and situational cues
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
198) Which of the following is one of the focuses of cultural tightness/looseness?
a) the tolerance that exists for any deviations from norms
b) the superiority of home-country values over a foreign culture
c) the first interaction with a new culture and the anxieties associated with it
d) the time when a new culture becomes the subject of one’s criticism
e) the ability to interpret the real message from what is being said
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
199) In a ___ culture, people guide their behaviour according to expectations set by prevailing social norms.
a) low-context
b) loose
c) monochronic
d) polychronic
e) tight
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
200) The goal set by tight cultures is to
a) fit in.
b) stand out.
c) remain complacent.
d) attract attention.
e) disregard the social norms.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
201) In a loose culture, ___.
a) people adhere to the social norms
b) people are expected to fit in
c) people are discouraged to speak out
d) deviations from norms are tolerated
e) conformity to social norms is uniform and absolute
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
202) Which of the following is true about loose cultures?
a) A high degree of conformity to social norms is present.
b) Tolerance for deviation is absent.
c) The goal is to fit into the societal expectations.
d) Social norms are narrow and unambiguous.
e) Non-criminal deviations from norms tend to be tolerated.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
203) A mix of cultural tightness and looseness in a cross-cultural team may result in ___.
a) synchronized performance
b) consistent productivity
c) soft or unstated conflict
d) mitigation of conflict
e) uniform and high inclination to volunteer
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
204) In a cross-cultural team, a member from the loose culture may show an inclination for which of the following?
a) looking toward formal authority for direction
b) criticizing others
c) being slow to volunteer
d) being slow to display emotion
e) always being on time
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
205) Which of the following is a cultural dimension identified by Geert Hofstede?
a) social orientation
b) cultural intelligence
c) social context
d) uncertainty avoidance
e) socialization
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
206) Geert Hofstede developed a framework consisting of five dimensions for understanding the management implications of broad differences in national cultures. Which one of the following statements accurately identifies these five dimensions?
a) location, certainty avoidance, individualism-collectivism, masculinity-femininity, and religious tradition
b) power distance, certainty avoidance, individualism-utilitarianism, masculinity-femininity, and religious tradition
c) political distance, uncertainty avoidance, utilitarianism-collectivism, masculinity-femininity, and time orientation
d) power distance, uncertainty avoidance, individualism-collectivism, masculinity-femininity, and time orientation
e) power distance, uncertainty avoidance, individualism-collectivism, totalitarianism-decentralization, and economic opportunities
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
207) Which of the following descriptions represents Hofstede’s masculinity-femininity dimension?
a) reliance on group decisions versus reliance on individual decisions
b) everyone should have equal rights versus the ones in control should be entitled to privilege
c) willingness to take risks versus concern with security in life
d) assertiveness and material concerns versus concerns for human relationships and feelings
e) time is free versus time is money
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
208) Hofstede defined his time orientation dimension of national culture as ___.
a) the degree to which a society tolerates risk and situational uncertainties
b) the degree to which a society accepts a hierarchical or unequal distribution of power in organizations
c) the degree to which a society relies on individual accomplishments and self-interests versus the collective accomplishments and interests of the group
d) the degree to which a society emphasizes assertiveness and material concerns versus greater concerns for human relationships and feelings
e) the degree to which a society emphasizes short-term considerations versus greater concern for the future
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
209) The ___ assumes that a generalized cultural value applies equally well to all members of the culture.
a) ecological fallacy
b) naturalist theory
c) etymological theory
d) definist culture
e) existential process
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
210) Nico, a resident of Ukraine, decides to travel to Canada for a vacation. During the vacation Nico has decided that all Canadians, without exception are strongly individualistic. Nico is in the danger of falling prey to the ___.
a) regression fallacy
b) ethical dilemma
c) Samaritan’s dilemma
d) existential fallacy
e) ecological fallacy
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
211) ___ is the degree to which a society accepts unequal distribution of power.
a) Masculinity-femininity
b) Proxemics
c) Power distance
d) Individualism-collectivism
e) Power tactics
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
212) Which of the following is true about people in high-power-distance cultures?
a) They do not accept differences in rank.
b) They tend to be tolerant of power.
c) They display a narrow perception of the mind.
d) They display egalitarian relationships.
e) They have no respect for the elderly.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
213) Adrian had been recruited as a human resource manager for a firm based in China. Adrian soon realized that the work culture at the new office is entirely different from that of the previous firm, which was based in the Canada. In the new office, Adrian could not question an order passed by a higher authority. What kind of a culture is Adrian facing in the new office?
a) individualistic culture
b) loose culture
c) polychronic culture
d) high-power-distance culture
e) low-context culture
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
214) Which of the following descriptions best describes Hofstede’s power distance dimension?
a) reliance on group decisions versus reliance on individual decisions
b) everybody should have equal rights versus the ones who are in control are entitled to privilege
c) willingness to take risks versus concern with security in life
d) interdependence versus independence
e) time is free versus time is money
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
215) The extensive use of words like “I” and “me” in conversations and meetings reflect a cultural tendency toward ___.
a) collectivism
b) nationalism
c) masculinity
d) individualism
e) socialism
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
216) ___ had the highest individualism score of any country in Hofstede’s data.
a) The United States
b) The United Kingdom
c) Canada
d) Australia
e) China
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
217) Which of the following descriptions represents Hofstede’s individualism-collectivism dimension?
a) all people should have equal rights versus the ones in control are entitled to privilege. b) willingness to take risks versus concern with security in life
c) reliance on individual accomplishments and self-interests versus the collective accomplishments and interests of the group
d) interdependence versus independence
e) time is free versus time is money
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
218) Jaden has just started working in China and noticed almost immediately that the words “we” and “us” are frequently used in conversations and meetings. This illustrates what type of attitude?
a) collectivist
b) power sharing
c) individualistic
d) teamwork
e) group effort
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
219) ___ is the degree to which a society tolerates risk and change.
a) Culture shock
b) Cultural assimilation
c) Imperialism
d) Power distance
e) Uncertainty avoidance
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
220) In high uncertainty-avoidance cultures, one would expect to find a preference for ___.
a) openness to change
b) innovation
c) predictability
d) openness to risk
e) ambiguity
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
221) Members of low uncertainty-avoidance cultures display
a) apathy toward innovation.
b) affinity for rules.
c) preference for structure.
d) openness to change.
e) rigidity toward change.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
222) Skyler Melville, a successful artist, lives and works in Paris. Skyler does not travel much and like many of Skyler’s peers, has declined multiple offers to teach in famous schools of art outside of Paris. Skyler does not like change and prefers predictability, order, and structure in life. Skyler displays the traits associated with a ___ culture.
a) low uncertainty avoidance
b) short-term oriented
c) long-term oriented
d) xenocentric
e) high uncertainty avoidance
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
223) Hofstede defined his uncertainty-avoidance dimension of national culture as ___.
a) the degree to which a society is uncomfortable with risk, change, and situational uncertainties
b) the degree to which a society accepts a hierarchical or unequal distribution of power in organizations
c) the degree to which a society emphasizes individual accomplishments and self-interests versus the collective accomplishments and interests of groups
d) the degree to which a society emphasizes assertiveness and material concerns versus greater concerns for human relationships and feelings
e) the degree to which a society emphasizes short-term considerations versus greater concern for the future
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
224) Which of the following defines masculinity-femininity?
a) It is the degree to which a society values assertiveness and materialism versus feelings, relationships, and quality of life.
b) It is the ratio of men and women in the workforce at a given point of time.
c) It is the degree to which a society values the role of men and women as the propagators of its culture.
d) It refers to the core differences of gender that are mirrored in the interaction between a man and a woman.
e) It refers to the importance of men versus women in a society.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
225) ___ has the highest masculinity score in Hofstede’s research.
a) Malaysia
b) Japan
c) India
d) France
e) Germany
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
226) The goal of comparative management studies is to ___.
a) increase cultural diversity
b) stimulate creative thinking about the practices used by managers in different cultures
c) promote Ethnocentric attitudes
d) explain why managers in one culture are more effective than in another culture
e) identify universal management practices and principles
Learning Objective 5.4: Identify the benefits of global learning for management and organizations.
Section Reference 5.4: Global Management Learning
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
227) Which of the following pillars of management advocates that a person be inquisitive and curious about cultural differences?
a) relationship management
b) perception management
c) finance management
d) self-management
e) crisis management
Learning Objective 5.4: Identify the benefits of global learning for management and organizations.
Section Reference 5.4: Global Management Learning
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
228) One of the concerns of multinational corporations is whether North American. management practices and theories are appropriate for use in foreign countries. Hofstede’s research in this area indicates that North American theories ___.
a) are universally applicable since they are good theories
b) are only valid within the United States
c) work best within American-based multinational corporations
d) are still ethnocentric
e) work best within English-speaking countries
Learning Objective 5.4: Identify the benefits of global learning for management and organizations.
Section Reference 5.4: Global Management Learning
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
229) Companies that believe in ___ realize that businesses around the world have much to share with and learn from one another.
a) transnational knowledge positioning
b) global management learning
c) expatriate knowledge sharing
d) international trade
e) ethnocentrism
Learning Objective 5.4: Identify the benefits of global learning for management and organizations.
Section Reference 5.4: Global Management Learning
Bloom’s: Comprehension
Difficulty: Easy
AACSB: Analytic
230) Which of the following is a key component of intercultural competencies?
a) It refers to acting competent when working in another culture.
b) It does not tolerate cultural diversity.
c) It involves being judgmental about a cultural norm.
d) It refers to the superiority of one culture to another.
e) It does not require a person to be open-minded about a culture.
Learning Objective 5.4: Identify the benefits of global learning for management and organizations.
Section Reference 5.4: Global Management Learning
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
231) Lane, who was posted as a manager in a firm in India, was able to quickly adjust to the host country’s culture and work ethics. Lane’s self-confidence and flexible nature allowed Lane to accept and adapt to the cultural differences well. Which trait is displayed in the given scenario?
a) ethnocentrism
b) intercultural competency
c) xenocentrism
d) uncertainty avoidance
e) egocentrism
Learning Objective 5.4: Identify the benefits of global learning for management and organizations.
Section Reference 5.4: Global Management Learning
Bloom’s: Application
Difficulty: Medium
AACSB: Analytic
Question type: Essay
232) Name and briefly define some common market-entry strategies that help companies go global.
A common first step into international business is global sourcing—the process of purchasing materials, manufacturing components, or locating business services around the world.
A second form of international business involves exporting—selling locally-made products in foreign markets. The flipside of exporting is importing—buying foreign-made products and selling them in domestic markets.
Another form of international business is the licensing agreement where foreign firms pay a fee for rights to make or sell another company’s products in a specified region. Franchising is a form of licensing in which a foreign firm buys the rights to use another’s name and operating methods in its home country.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
233) Identify and describe the key regional alliances in the global economy referred to in the text.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
234) Briefly describe the different forms of global business that an organization can pursue.
- Global sourcing involves purchasing materials, manufacturing components, or business services from around the world.
- Exporting involves selling locally-made products in foreign markets.
- Importing involves buying foreign-made products and selling them in domestic markets.
- A licensing agreement occurs when a foreign firm pays a fee for the right to make or sell another company’s products in a specified region.
- Franchising is a form of licensing in which the foreign firm buys the rights to use another firm’s name and operating methods in its home country.
- Joint ventures are co-ownership arrangements that pool resources, share risks, and share control of business operations.
- A foreign subsidiary is a local operation completely owned and controlled by a foreign firm.
Learning Objective 5.1: Discuss the implications of globalization for management and organizations.
Section Reference 5.1: Management and Globalization
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
235) Legal, political, and ethical challenges to global business can be found in many arenas. What are the challenges to business that emerge from the actions of a host country and those that emerge from the actions of a home country?
For example, U.S.-based Intel manufactures semiconductors in China and Costa Rica, among other places. Its home country is therefore the United States, while China and Costa Rica are host countries to its global operations. To succeed, Intel must meet government requirements and local customs in all three countries.
The potential host-country costs include complaints that MNCs extract excessive profits, dominate the local economy, interfere with the local government, do not respect local customs and laws, fail to help domestic firms develop, hire the most talented of local personnel, and fail to transfer their most advanced technologies.
Whenever a domestic employer outsources jobs, or cuts back or closes a domestic operation in order to shift work to lower-cost international destinations, the loss of local jobs is controversial. Corporate decision-makers are likely to be engaged by government and community leaders in critical debates about a firm’s domestic social responsibilities. Other home-country criticisms of MNCs include complaints about sending capital investments abroad and engaging in corrupt practices in foreign settings.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
236) How do global corporations view sustainable development and provide an example of a global corporation fulfilling its commitments to sustainable development?
Corporate responsibility standards, norms, principles and guidelines aim to provide generally accepted reference points for improving aspects of social and environmental performance. Although mostly voluntary, some are emerging as de facto industry standards that provide the desired legitimacy, consistency and comparability required by business and its stakeholders.
For a firm to fulfill a commitment to sustainable development, its executives must lead in ways that demonstrate stewardship in protecting the natural environment and preserving its resources for the future. Many international standards and networks started as attempts to help guide organizations on how to improve the consistency of their products, reduce their impact on the environment (ISO 14000) or to generally improve their environmental and social management. These programs are voluntary and involve a range of activities, from a simple commitment to investigate sustainability issues to the adherence to strict protocols for environmental and social standards. Sustainability is now a regular focus at the annual World Economic Forum at Davos, where many of the world’s most powerful business and political leaders gather annually to reflect on the key challenges of the year ahead.
General Electric (GE) is an example of a company fulfilling its commitments on sustainable development. In 2010, GE earned the top rank in Global 100 list of the most sustainable large corporations in the world at the World Economic Forum in Davos. This was due to its industry leading ratio of sales to waste, strong board gender diversity, and a doubling of its carbon productivity from 2006 to 2008, reducing its total carbon emissions while increasing sales from $150 billion to $181 billion.
Philips Electronics is another example of a company that appears to have an advanced-stage sustainability strategy. Philips Electronics has developed special medical vans that allow urban doctors to reach remote villages to diagnose and treat patients via satellite. It has also developed low-cost water-purification technology and a smokeless wood-burning stove that could reduce the 1.6 million deaths annually worldwide from pulmonary diseases linked to cooking smoke. Philips is also abandoning its leading incandescent lighting business in favour of more energy-efficient compact fluorescent, and eventually LED lighting.
Learning Objective 5.2: Describe global corporations and the issues they face and create.
Section Reference 5.2: Global Businesses
Bloom’s: Analysis
Difficulty: Medium
AACSB: Reflective Thinking
237) Define culture. Explain the importance of cultural intelligence.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
238) Describe the key dimensions of Geert Hofstede’s framework for comparing national cultures. What are the implications of these cultural dimensions for international business?
Power distance – the degree to which a society accepts or rejects the unequal distribution of power among people in organizations and the institutions of society.
Uncertainty avoidance – the degree to which a society is uncomfortable with risk, change, and situational uncertainty, versus having tolerance for them.
Individualism-collectivism – the degree to which a society emphasizes individual accomplishments and self-interests, versus the collective accomplishments and interests of groups.
Masculinity-femininity – the degree to which a society values assertiveness and material success, versus feelings and concern for relationships.
Time orientation – the degree to which a society emphasizes short-term considerations versus greater concern for the future.
People who grow up in and live in a particular culture are influenced by that culture’s orientation toward each of these dimensions. Different behaviour will result from different orientations toward these cultural dimensions.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
239) Distinguish between tight and loose cultures. Provide an example of each.
More specific examples may be provided by the student, similar to those presented in the text.
Learning Objective 5.3: Define culture and identify ways to describe diversity in global cultures.
Section Reference 5.3: Cultures and Global Diversity
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
240) What is meant by intercultural competencies? What are the different pillars of intercultural competencies?
Learning Objective 5.4: Identify the benefits of global learning for management and organizations.
Section Reference 5.4: Global Management Learning
Bloom’s: Knowledge
Difficulty: Easy
AACSB: Analytic
241) Are management theories universal? Explain why or why not.
Learning Objective 5.4: Identify the benefits of global learning for management and organizations.
Section Reference 5.4: Global Management Learning
Bloom’s: Analysis
Difficulty: Medium
AACSB: Analytic
Document Information
Connected Book
Management Canada 5e | Complete Test Bank
By John R. Schermerhorn Jr