Chapter 04 Self Study Quiz
Self-Study Quiz
This activity contains 25 questions.
Monolingualism is one sign that a nation suffers from _____.
polycentrism
parochialism
geocentrism
expansionism
Using the _____ view, major issues and decisions are viewed globally by looking for the
best approaches of people regardless of origin.
parochialistic
polycentric
ethnocentric
geocentric
The global company approaches business with a(n) _____.
ethnocentric attitude
polycentric attitude
geocentric attitude
parochialistic attitude
Socks 'R' Us is a multinational corporation that has been global from its inception and
committed resources upfront to doing business in more than one country. Socks 'R' Us
is considered a(n) _____.
ethnocentric company
multidomestic corporation
born global
borderless organization
_____ involves making products domestically and selling them abroad, whereas _____
involves acquiring products made abroad and selling them domestically.
Exporting; importing
Licensing; franchising
Importing; exporting
Franchising; licensing
_____ are similar approaches involve an organization's giving another organization the
right to use its brand name, technology, or product specifications in return for a lump
sum payment or a fee usually based on sales.
Importing and exporting
Licensing and franchising
Insourcing and outsourcing
Strategic alliances and joint ventures
A _____ is one in which economic decisions are planned by a central government.
market economy
direct economy
command economy
free economy
The term _____ refers to the values and attitudes shared by individuals from a specific
country that shape their behavior and their beliefs about what is important.
individualism
market economy
legal status
national culture
Which of the following is NOT one of Hofstede's 5 dimensions of national culture?
Individualism
Humane orientation
Power distance
Uncertainty avoidance
Which of the following GLOBE dimensions of national culture measures the extent to
which a society encourages and rewards such behaviors as planning ahead and delaying
gratification?
Future orientation
Assertiveness
Gender differentiation
In-group collectivism
A geocentric attitude is the parochialist belief that the best work approaches and
practices are those of the home country.
True
False
NAFTA created an economic bloc including Mexico, Canada, and the United States with
freedoms of labor movement and trade similar to that of the economic bloc of the
European Union.
True
False
The goal of the World Trade Organization is to help businesses conduct their business.
True
False
International companies have been common since the beginning of the 20 th century.
True
False
Importing and exporting are steps toward being a full-blown international business and
still usually involve minimal investment and risk.
True
False
A joint venture involves making a direct investment in a foreign country by setting up a
production facility or office.
True
False
Managers of businesses in countries with lower stability levels face dramatically greater
uncertainty as a result of that instability.
True
False
The legal-political environment in a host country must be unstable to be a concern to
managers.
True
False
Economies are either purely market or purely command.
True
False
Globalization is meant to open up trade and to break down the geographical barriers
separating countries.
True
False
What are the benefits of becoming part of a regional trading alliance? Consider the
example of the European Union in your response.
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end.
Identify the three global attitudes presented in your book and what types of
organizational structures best demonstrate these attitudes.
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end.
Differentiate between market and command economies. How do currency exchange
rates, inflation rates, and diverse tax policies impact global managers?
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end.
Differentiate between joint ventures and foreign subsidiaries as ways for companies to
compete globally.
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end.
Discuss the GLOBE framework for understanding the dimensions of national cultures.
Include five of the dimensions and briefly explain them.
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end.