Chapter 3 Managing in a Global Environment

1)
Americans tend to suffer from parochialism.

2)
Managers with an ethnocentric attitude do not trust foreign employees with key
decisions or technology.

3)
Managers with a polycentric attitude tend to view every foreign operation as
difficult and hard to understand.

4)
The polycentric attitude is a world-oriented view focusing on using the best
approaches and people from around the globe.

5)
When the twelve original members formed the European union in 1992, the primary
motivation was to reassert the region’s economic position against the United States
and Japan.

6)
Norway
is a member of the European Union.
7)
The United States, Canada, and Mexico are parties to the North American Free
Trade Association.
8)
Mercosur is a trading group made up of ten South American countries.

9)
A transnational organization reflects an ethnocentric attitude.

10)
Managers who want to get into a global market with minimal investment start
with global sourcing.

11)
The process of exporting involves acquiring products made abroad and selling
them domestically.

12)
Licensing and franchising are similar approaches involving one organization
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.
13)
Licensing is primarily used by service organizations and franchising is
primarily used by manufacturing organizations.

14)
Strategic alliance is a partnership between an organization and a foreign
company partner or partners in which both share resources and knowledge in
developing new products or building production facilities.

15)
Only when a country’s political/legal environment is unstable or revolutionary
is it of concern to managers.

16)
Mexico
is an example of a Collectivistic nation.

17)
The United States
is an example of a country with low power distance.

18)
A high uncertainty avoidance society is threatened by ambiguity and experiences
high levels of anxiety.
19)
The GLOBE framework for assessing cultures is similar to Hofstede’s framework,
but measures fewer dimensions.

20)
A global mind-set refers to attributes that allow a leader to be effective in
cross-cultural environments.

21)
Monolingualism is one sign that a nation suffers from ________.
A)
parochialism
B)
ethnocentrism
C)
polycentrism
D)
geocentrism
22)
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

23)
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 anelitist attitude.
B)
He has a polycentric attitude.
C)
He has a parochialistic attitude.
D)
He has a geocentric attitude.

24)
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 manage in a
global environment

25)
A manager who wishes to be successful in international business should avoid
a(n) ________ attitude.
A)
multicultural
B)
multiracial
C)
ethnocentric
D)
geocentric

26)
A(n) ________ attitude is characterized by parochialism.
A)
geocentric
B)
acculturated
C)
multilinguistic
D)
ethnocentric

27)
Managers with a(n) ________ attitude view every foreign operation as different
and hard to understand.
A)
geocentric
B)
polycentric
C)
ethnocentric
D)
regiocentric
28)
A(n) ________ attitude is the view that employees in the host country know the
best practices for running their operations.
A)
ethnocentric
B)
polycentric
C)
geocentric
D)
regiocentric

29)
In today’s global environment, managers must have a(n) ________ attitude in
order to be successful.
A)
ethnocentric
B)
parochial
C)
bigoted
D)
geocentric

30)
The ________ was formed by twelve original members 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