1) Natalya operates a retail store in Romania. She buys consumer electronics from
vendors in China and Japan to sell in her store. Natalya
is engaging in ________
A) importing
B) licensing
C) global sourcing
D) franchising
An: B
2) Samanex Corporation maintains production facilities in 13 different
countries on three continents. Each facility is managed by a native of the country
where it is located. This practice is indicative of
a(n) ________ attitude.
A) polycentric
B) multicentric
C) ethnocentric
D) geocentric
Ans: A
3) A(n) ________ attitude is the view that employees in the host country know the
best practices for running their operations.
A) polycentric
B) ethnocentric
C) geocentric
D) regiocentric
Ans: A
4) Harley Davidson makes motorcycles but in its retail stores it also sells
clothing, motorcycle accessories, jewelry, and many related products
made by other companies. Harley Davidson is engaging in ________.
A) licensing
B) exporting
C) global sourcing
D) franchising
Ans: A
5) Which of the following is a multinational corporation that tailors marketing
strategies to the host country's unique characteristics
A) global company
B) transnational organization
C) borderless organization
D) multidomestic corporation
Ans: D
6) While talking with her advisor at the university, Jane deduces that she has a(n)
________ attitude, as she has never traveled abroad and relates well only to
people from her home country
A) polycentric
B) regiocentric
C) geocentric
D) ethnocentric
Ans: D
7) Melamark LLC has customers on four continents. It would like to increase its
global presence as a supplier to its global customers. The most expensive option
would be to ________.
A) export from a single production plant
B) license producers in several countries
C) directly invest in a production facility in another country
D) form a strategic alliance with an existing company in another country
Ans: C
8) For American company Leather Exporters, first quarter sales in Italy were higher
compared to the preceding year but profits were down. What could account for
this difference?
A) a change in the national leadership in Italy
B) a reduction in trade barriers with Italy
C) a difference in the currency exchange rate
D) a cultural change in Italian society
Ans: C
9) Transnational organizations are also known as ________
A) polycentric organizations
B) borderless organizations
C) multidomestic organizations
D) ethnocentric organizations
Ans: B
10) The International Monetary Fund is an organization that ________.
A) helps countries conduct trade through a system of rules
B) provides financial assistance to developing countries
C) rules on disputes over tariffs and subsidies
D) promotes international monetary cooperation
Ans: D
11) A global company reflects the ________.
A) ethnocentric attitude
B) geocentric attitude
C) pancentric attitude
D) polycentric attitude
Ans: A
12) Multidomestic corporations ________.
A) reflect ethnocentric attitudes
B) attempt to replicate their domestic successes by managing foreign operations
from the home country
C) decentralize management and other decisions to the local country
D) maintain operations in multiple countries, but do not allow managers in each
country to make their own decisions
Ans: C
13) Melamark's advisor on global affairs is concerned that ________ carries too
much risk
A) setting up a foreign subsidiary
B) franchising
C) a joint venture
D) a strategic alliance
Ans: A
14) In Malbadia, a central committee formed by the political powers decides what
products and how many of each will be produced. This situation is typical of
A) a free market economy
B) a free enterprise economy
C) a planned economy
D) a freely planned economy
Ans: C
15) In today's global environment, managers must have a(n) ________ attitude to
be successful.
A) parochial
B) geocentric
C) ethnocentric
D) bigoted
Ans: B
16) In 1984 Toyota and General Motors formed a company called NUMMI to build
cars carrying both the General Motors and Toyota brands. NUMMI is an example of
a(n) ________.
A) equity strategic alliance
B) global venture
C) joint venture
D) nonequity strategic alliance
Ans: C
17)Which of the following types of global organizations reflects the geocentric
attitude?
A) regional organization
B) global company
C) transnational organization
D) multidomestic corporation
Ans: C
18) Unlike the United States, the change from one regime to another in foreign
countries can be less than peaceful. Differences in the ________
can lead to uncertainty and risk for global managers.
A) cultural environment
B) political/legal environment
C) demographic environment
D) economic environment
Ans: B
19) If Shana's company decides to open another company in France but centralizes
its management in the United States, it would be considered a ________
A) borderless organization
B) transnational corporation
C) multidomestic corporation
D) global company
Ans: D
20) The World Trade Organization evolved from which of the following?
A) Marshall Plan
B) General Agreement on Tariffs and Trade
C) Mercosur
D) Truman Doctrine
Ans: B
21) Nathan uses ethnic craftsmen to make high quality oak furniture. If he decides
to offer his furniture for sale in other countries, he will be engaging in ________.
A) licensing
B) importing
C) franchising
D) exporting
Ans: D
22) "Let's forget about tomorrow for tomorrow never comes." "Live for today."
These expressions would be typical of a culture that is
A) low in future orientation
B) low in humane orientation
C) high in assertiveness
D) high in performance orientation
Ans: A
23) A domestic firm and a foreign firm sharing the cost of developing new products
or building production facilities in a foreign country constitute a ________.
A) foreign subsidiary
B) franchising agreement
C) strategic alliance
D) joint venture
Ans: C
24) Employers in the global marketplace look for which one of the following?
A) a college degree in multicultural awareness
B) critical thinking skills
C) multi-lingual skills
D) respect for differences
25) Only speaking one language is one sign that a nation suffers from ________.
A) parochialism
B) ethnocentrism
C) polycentrism
D) geocentrism
26) Parochialism is a tendency to ________.
A) think highly of the foreign country in which the organization is doing business
B) focus on best approaches and people from around the globe
C) view the world solely through one's own eyes and perspectives
D) let employees in the host country figure out how best to do things
27) Bill Sanderson, a manager in a manufacturing firm in New York has a tendency
to view the world only through his U.S.-based perspective. What can be deduced
about his attitude?
A) He has an elitist attitude.
B) He has a polycentric attitude.
C) He has a parochialistic attitude.
D) He has a geocentric attitude.
28)An ethnocentric attitude ________.
A) prompts managers to have a global view and look for the best approaches and
people regardless of origin
B) is the belief that the home country has the best work approaches and practices
C) is the view that employees in the host country know the best work approaches
and practices
D) gives a manager a much broader understanding of what it takes to what it takes
to manage in a global environment
29) A(n) ________ attitude is characterized by parochialism.
A) geocentric
B) acculturated
C) multilinguistic
D) ethnocentric
30) A manager who wishes to be successful in international business should avoid
a(n) ________ attitude.
A) multicultural
B) multiracial
C) ethnocentric
D) geocentric
31) The single European Union currency is called the ________.
A) deutchmark
B) krona
C) pound
D) euro
32)The ________ was formed by twelve member countries with the primary
motivation of reasserting the region's economic position against the United States
and Japan.
A) African Union
B) European Union
C) Central America Free Trade Agreement
D) Association of South-East Asian Nations
CH 6 – Decision making
1- A decision for repetitive or routine problems for which the responses have
been already been d