Question 1

Which of the following best describes a polycentric attitude in international management?

Accepted Answer

Believing that managers in the host country know the best work approaches and practices for running their business.

Question 2

A multinational corporation (MNC) that decentralizes management and other decisions to the local country is best described as a:

Accepted Answer

Multi-domestic corporation

Question 3

Which of the following is a key argument against globalization?

Accepted Answer

It leads to wage stagnation for the middle class in developed countries.

Question 4

A company that produces goods in its home country and sells them abroad is engaging in which global approach?

Accepted Answer

Exporting

Question 5

Which of the following best illustrates Hofstede’s dimension of power distance?

Accepted Answer

A culture that encourages decentralized decision-making and participative management.

Question 6

If a company wants to minimize risk and investment when entering a new international market, which strategy is most appropriate?

Accepted Answer

Exporting from a single production plant

Question 7

Which of the following is a function of the World Trade Organization (WTO)?

Accepted Answer

Settling trade disputes among member countries

Question 8

A joint venture is best defined as:

Accepted Answer

A specific type of strategic alliance in which partners agree to form a separate, independent organization for some business purpose.

Question 9

Which of the following best describes a planned economy?

Accepted Answer

An economic system in which economic decisions are planned by a central government.

Question 10

According to Hofstede’s framework, which dimension measures the degree to which societies are integrated into groups?

Accepted Answer

Individualism vs. Collectivism

Question 11

A company that provides a standardized product or service throughout the world and targets market segments rather than geographic locations is demonstrating which global orientation?

Accepted Answer

Geocentric

Question 12

Which of the following trading alliances includes Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam?

Accepted Answer

Association of Southeast Asian Nations (ASEAN)

Question 13

Which of the following is a real-world example of a strategic alliance?

Accepted Answer

Toyota and General Motors forming NUMMI to produce cars together.

Question 14

Which of the following best describes the law of comparative advantage as it relates to globalization?

Accepted Answer

Every country benefits from trade by specializing in what they do best.

Question 15

A culture that emphasizes quick results and respect for tradition is likely to have which orientation according to Hofstede?

Accepted Answer

Short-term orientation

Question 16

Which of the following is NOT a typical challenge faced by managers in a new country?

Accepted Answer

Ignoring cultural differences

Question 17

If a company gives another organization the right to use its name and operating methods in return for a fee, this is an example of:

Accepted Answer

Franchising

Question 18

Which of the following best describes the function of the International Monetary Fund (IMF)?

Accepted Answer

Promotes international monetary cooperation and provides advice, loans, and technical assistance.

Question 19

Which of the following is a likely result of a high uncertainty avoidance culture?

Accepted Answer

Strict rules and low tolerance for risk-taking

Question 20

A company that eliminates artificial geographical barriers and integrates operations worldwide is best described as a:

Accepted Answer

Transnational or borderless organization

Managing in a Global Environment: Key Concepts and Frameworks

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