Chapter4–ManaginginaGlobalEnvironmentTrue/FalseQuestionsAMANAGER’SDILEMMA1.Accordingtothecompanyprofilein“AManager’sDilemma,”Cemexisanexampleofacompanythatsuffersfromparochialism.False(moderate)2.GeocentricistheorientationthatbestdescribestheattitudeofCemextowardinternationalbusiness.True(moderate)3.CemexcanbedescribedasacompanyinStage1ofdoingbusinessglobally.False(moderate)4.TheenvironmentalfactorthatismostimportanttotheadjustmentofCemexexpatriatemanagersistheeconomicenvironment.False(moderate)WHAT’SYOURGLOBALPERSPECTIVE?5.Americanstendtosufferfromparochialism.True(moderate)6.Adrawbackofthegeocentricperspectiveisthatitisinflexible.False(moderate)7.Managerswithanethnocentricattitudewouldnottrustforeignemployeeswithkeydecisionsortechnology.True(moderate)8.Managerswithapolycentricattitudewouldvieweveryforeignoperationasdifficultandhardtounderstand.True(moderate)9.Thepolycentricattitudeisaworld-orientedviewfocusingonusingthebestapproachesandpeoplefromaroundtheglobe.False(moderate)UNDERSTANDINGTHEGLOBALENVIRONMENT10.TheEuropeanUnionandtheNorthAmericanFreeTradeAgreementcreatedregionaltradingandcooperativeagreements.True(easy)11.TheultimategoaloftheEuropeanUnion(EU)istohavecommoncustomsdutiesandunifiedindustrialandcommercialpoliciesaswellasasinglecurrencyandaregionalcentralbank.True(difficult)12.TheprimarymotivationforthecreationoftheEuropeanUnion(EU)wastoallowEuropeanstoreasserttheirpositionagainsttheindustrialstrengthoftheU.S.andJapan.True(moderate)13.ThethreeoriginalpartnersofNAFTAaretheU.S.,Canada,andMexico.True(easy)14.OneoftheeffectsofNAFTAhasbeengreatlyincreasedunemploymentintheU.S.False(difficult)15.MercosurisatradinggroupmadeupofSouthAmericancountries.True(moderate)16.Multinationalcorporationsbecamecommonplaceinthemid1960s.True(moderate)17.Multinationalcorporationsmaintainsignificantoperationsintwoormorecountriessimultaneouslybutarebasedinonehomecountry.True(moderate)18.Thetransnationalcorporationcharacterizestheethnocentricattitudetowardsthemanagementofanorganization'sglobalbusiness.False(difficult)19.Transnationalcorporationsruntheirbusinessfromtheirhomecountry.False(easy)HOWORGANIZATIONSGOGLOBAL20.Thefirststagewhenanorganizationgoesinternationalisexportingitsproductstoothercountries.True(moderate)21.Thesecondstageofanorganizationgoinginternationalistheinitialovertentrywheretheorganizationhiresforeignrepresentationorcontractswithforeignmanufacturers.True(difficult)22.Instagethreeofanorganizationgoinginternational,managersaggressivelypursueinternationalmarketsandmaylicenseorfranchisetoanotherfirmtherighttousetheorganization'sbrandname,technology,orproductspecifications.True(difficult)MANAGINGINAGLOBALENVIRONMENT23.Thelegal-politicalenvironmentisanimportantfactorofmanaginginaforeignenvironment.True(easy)24.Onlywhenacountry'slegal-politicalenvironmentisunstableorrevolutionaryisitofconcerntomanagers.False(easy)25.Researchindicatesthatorganizationalculturehasastrongerimpactonemployeesthannationalculture.False(difficult)26.Mexicoisanexampleofacollectivistnation.True(difficult)27.TheUnitedStatesisanexampleofacountrywithlowerpowerdistance.True(moderate)28.Anincreasedlevelofanxietyamongitspeoplecharacterizesasocietywithhighuncertaintyavoidance.True(easy)29.HofstedefoundthattheU.S.cultureiswellaboveaverageonquantity-of-lifemeasuresofculture.True(easy)ISAGLOBALASSIGNMENTFORYOU?30.Organizationalsocializationreferstotheprocessemployeesgothroughtoadapttoanorganization'sculture.True(moderate)MultipleChoiceAMANAGER’SDILEMMA31.AccordingtothecompanyprofileofCemexin“AManager’sDilemma,”whichofthefollowingenvironmentalfactorsismostimportantintheadjustmentoftheCemexexpatriatemanagers?a.politicalenvironmentb.legalenvironmentc.economicenvironmentd.culturalenvironment(moderate)e.technologicalenvironment32.AtwhichofthefollowingstagesofdoingbusinessgloballywouldCemexbestfit?a.Stage1b.Stage2c.Stage3(moderate)d.Stage4e.Stage533.WhichofthefollowingbestdescribesCemexasaglobalorganization?a.domesticcorporationb.multinationalcorporationc.transnationalcorporation(moderate)d.transparentcorporation34.WhichofthefollowingbestdescribestheattitudetowardinternationalbusinessofCemex?a.ethnocentricb.polycentricc.geocentric(moderate)d.parochialWHAT’SYOURGLOBALPERSPECTIVE?35.OnereasonforparochialismintheU.S.isthatAmericanstendtostudy_____________inschool.a.onlyEnglish(easy)b.onlytwolanguagesc.EnglishandFrenchd.EnglishandGermane.GermanandSpanish36.Whichofthefollowingdescribesthecurrentstateofworlduseoflanguages?a.GermansandItalians,unlikeotherEuropeans,onlyspeaktheirnativelanguage.b.Americanstendtostudymanyotherlanguagesinschool.c.MostJapanesebeginlearningEnglishbytheirthirdyearofhighschool.d.AmericanstendtothinkofEnglishastheonlyinternationalbusinesslanguage.(moderate)e.Japaneseisexpectedtobethemostusedinternationallanguagebytheyear2010.37._____________isasignthatAmericanssufferfromparochialism.a.Multinationalismb.Monolinguism(moderate)c.Geocentrismd.Polycentrisme.Globalism38.Parochialismisa.acceptanceofdiversepointsofview.b.adesiretoleaveone'sow