Question 1

When the 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.

Accepted Answer

A) True 
 B)False  True

Question 2

Theodore and James decide to enter into an agreement with a firm in Europe allowing them to use their software, brand name, and business methods in return for a lump sum payment and a percentage of sales. The European firm is a service organization that plans to use the software to serve its customers. Their agreement is a(n) ________.

Accepted Answer

A)   export agreement
B)   licensing agreement
C)   franchise agreement
D)   import agreement C

Question 3

Adam has been hired by an organization that has a partnership with a foreign company. Both the partners share resources and knowledge while developing new products. Adam's organization has formed a ________.

Accepted Answer

A)   licensing company
B)   franchising company
C)   strategic alliance
D)   foreign subsidiary C

Question 4

Caron admits she's a tough cookie. She thrives in an environment in which employees compete against each other for big rewards. It is likely that Caron's culture ________.

Accepted Answer

A)   is high in performance orientation
B)   is high in in-group collectivism
C)   is high in future orientation
D)   is high in assertiveness

Question 5

The World Trade Organization was formed in the year ________.

Accepted Answer

A)   1995
B)   1967
C)   1971
D)   1983

Question 6

Theodore and James decide to enter into an agreement with a firm in Europe allowing them to use the rights to their software, brand name, and software specifications in return for a lump sum payment. The firm is a service organization that plans to use the software to assist its customers. Their agreement is a(n) ________.

Accepted Answer

A)   export agreement
B)   licensing agreement
C)   franchise agreement
D)   import agreement

Question 7

Parochialism is a tendency to ________.

Accepted Answer

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

Question 8

The single European Union currency is called the ________.

Accepted Answer

A)   deutchmark
B)   krona
C)   pound
D)   euro

Question 9

Discuss four global economic issues and how they affect management decisions, providing examples of each.

Accepted Answer

The answer of Discuss four global economic issues and how...

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

A high uncertainty avoidance society is threatened by ambiguity and experiences high levels of anxiety.

Accepted Answer

A) True 
 B)False

Question 12

The GLOBE framework for assessing cultures is similar to Hofstede's framework, but measures fewer dimensions.

Accepted Answer

A) True 
 B)False

Question 13

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.

Accepted Answer

A)   regiocentric
B)   polycentric
C)   ethnocentric
D)   geocentric

Question 14

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.

Accepted Answer

A) True 
 B)False

Question 15

If Shana's company decides to open another company in France but centralizes its management in the United States, it would be considered a ________.

Accepted Answer

A)   transnational corporation
B)   global company
C)   borderless organization
D)   multidomestic corporation

Question 16

The advantages of operating globally include ________.

Accepted Answer

A)   higher profits
B)   higher employee satisfaction
C)   higher stock trading prices
D)   lower employee turnover

Question 17

Alfredo believes that the CEO is no better than the janitor of the organization and neither should receive preferential treatment. Using the GLOBE model, what can we infer about Alfredo's culture?

Accepted Answer

A)   Alfredo's culture is high in power distance.
B)   Alfredo's culture is high in assertiveness.
C)   Alfredo's culture is low in low in humane orientation.
D)   Alfredo's culture is low in power distance.

Question 18

Part of Jose's company's business plan involves setting up a foreign subsidiary. This arrangement involves ________.

Accepted Answer

A)   making products domestically and selling them abroad
B)   Jose's company giving the foreign subsidiary the right to use its brand name
C)   directly investing in a foreign country
D)   minimum global investment

Question 19

Harley Davidson makes motorcycles but in its retail stores it also sells clothing, motorcycle accessories, jewelry, and many related products carrying the Harley trademarks made by other companies. Harley Davidson is engaging in ________.

Accepted Answer

A)   global sourcing
B)   exporting
C)   franchising
D)   licensing

Question 20

Americans tend to suffer from parochialism.

Accepted Answer

A) True 
 B)False

Exam 3: Globalmanagement

When the 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.

Adam has been hired by an organization that has a partnership with a foreign company. Both the partners share resources and knowledge while developing new products. Adam's organization has formed a ________.

Caron admits she's a tough cookie. She thrives in an environment in which employees compete against each other for big rewards. It is likely that Caron's culture ________.

The World Trade Organization was formed in the year ________.

Parochialism is a tendency to ________.

The single European Union currency is called the ________.

Discuss four global economic issues and how they affect management decisions, providing examples of each.

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

A high uncertainty avoidance society is threatened by ambiguity and experiences high levels of anxiety.

The GLOBE framework for assessing cultures is similar to Hofstede's framework, but measures fewer dimensions.

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.

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.

If Shana's company decides to open another company in France but centralizes its management in the United States, it would be considered a ________.

The advantages of operating globally include ________.

Alfredo believes that the CEO is no better than the janitor of the organization and neither should receive preferential treatment. Using the GLOBE model, what can we infer about Alfredo's culture?

Part of Jose's company's business plan involves setting up a foreign subsidiary. This arrangement involves ________.

Harley Davidson makes motorcycles but in its retail stores it also sells clothing, motorcycle accessories, jewelry, and many related products carrying the Harley trademarks made by other companies. Harley Davidson is engaging in ________.

Americans tend to suffer from parochialism.