Chapter 3

Question 1

Global village

Answer 1

A boundary less world where goods and services are produced and marketed worldwide.

Question 2

What does it mean to be global?

Answer 2

Exchanging goods and services with consumers in other countries
Using managerial and employee talent from other countries
Using financial sources and resources outside home country

Question 3

Global sourcing

Answer 3

purchasing materials or labor from the cheapest source in order to maintain competitive edge

Question 4

Exporting

Answer 4

an organizations product is made domestically and sold abroad

Question 5

Importing

Answer 5

involves acquiring products made abroad and selling them domestically

Question 6

Franchising

Answer 6

primarily used by service organizations that want to use another company name and operating methods

Question 7

Foreign subsidiary

Answer 7

separate and independent facility or office

Question 8

MNC

Answer 8

multinational corporation - any type of international company that maintains operations in multiple countries

Question 9

Multi domestic corporation

Answer 9

management and other decisions are decentralized to the local country in which it is operating

Question 10

Transnational (borderless) Organizations

Answer 10

An MNC where artificial geographical boundaries are eliminated

Question 11

Global Corporation

Answer 11

An MNC in which management and other decisions are centralized in the home country.

Question 12

Parochialism

Answer 12

a narrow focus in which managers see things only through their own eyes and from their own perspectives—not recognizing that countries have different values, morals, customs, political and economic systems, and laws—which can affect how a business is managed.

Question 13

Global leadership and organizational behavior effectiveness

Answer 13

continues the ongoing cross-cultural investigation of leadership and national culture. GLOBE’s findings both extend Hofstede’s research and confirm the validity of his original dimensions.

Question 14

Assertiveness

Answer 14

is the extent to which a society encourages people to be tough, confrontational, assertive, and competitive versus modest and tender. (The United States ranks high; Egypt ranks moderate; and Sweden ranks low.)

Question 15

Future Orientation

Answer 15

indicates the extent to which a society encourages and rewards future-oriented behavior such as planning, investing in the future, and delaying gratification. (Canada ranks high; Slovenia ranks moderate; and Russia ranks low.)

Question 16

Gender differentiation

Answer 16

captures the extent to which a society maximizes gender role differences. (South Korea ranks high; Italy ranks moderate; and Denmark ranks low.)

Question 17

uncertainty avoidance

Answer 17

is a society’s reliance on social norms and procedures to alleviate the unpredictability of future events. (Germany ranks high; Israel ranks moderate; and Hungary ranks low.)

Question 18

Power Distance

Answer 18

is the degree to which members of a society expect power to be unequally distributed. (Thailand ranks high; England ranks moderate; and South Africa ranks low.)

Question 19

Individualism and collectivism

Answer 19

is the degree to which individuals are encouraged to integrate into groups within organizations and society. (Greece is highly individualistic; Hong Kong is moderately individualistic; and Singapore is collective.)

Question 20

in - group collectivism

Answer 20

encompasses the extent to which members of a society take pride in their membership in small groups such as their family and circle of close friends and the organizations by which they are employed. (China ranks high; Qatar ranks moderate; and New Zealand ranks low.)

Question 21

Performance Orientation

Answer 21

refers to the degree to which a society encourages and rewards group members for performance improvement and excellence. (Taiwan is high; Spain is moderate; and Greece is low.)

Question 22

Humane Orientation

Answer 22

is the degree to which a society encourages and rewards individuals for being fair, altruistic, generous, caring, and kind to others. (Indonesia ranks high; Hong Kong ranks moderate; and France ranks low.)

Question 23

Social Responsibility

Answer 23

refers to a business’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society. Social responsibility adds an ethical imperative to do those things that make society better and to avoid those things that could make it worse.

Question 24

Social Obligations

Answer 24

are activities a business engages in to meet certain economic and legal responsibilities. It does the minimum that the law requires and only pursues social goals to the extent that they contribute to its economic goals.

Question 25

Social Responsiveness

Answer 25

is characteristic of the business firm that engages in social actions in response to a popular social need. Managers in these companies are guided by social norms and values and make practical, market-oriented decisions about their actions.

Question 26

Sustainability

Answer 26

defined as company’s ability to achieve its business goals and increase long term shareholder value by integrating economic, environmental, and social opportunities in into its business strategies

Question 27

Ethics

Answer 27

commonly refers to a set of rules or principles that defines right and wrong conduct.

Question 28

The Utilitarian view of ethics

Answer 28

ethical decisions are made solely on the basis of their outcomes or consequences. The goal of utilitarianism is to provide the greatest good for the greatest number of people.

Question 29

rights view of ethics

Answer 29

individuals are concerned with respecting and protecting individual liberties and privileges such as the right of free consent, the right to privacy, and the right of free speech. Under this view, making ethical decisions is simple because the goal is to avoid interfering with the rights of others who might be affected by the decision.

Question 30

theory of justice view of ethics

Answer 30

, an individual is equitable, fair, and impartial in making decisions. For instance, such a manager would pay individuals of similar skill, performance, or responsibility level the same wage and wouldn’t base that decision on gender, personality, or favoritism.

Question 31

What determines ethical behavior?

Answer 31

Morality
Values
Personality 
Experience
Organization's culture
Issue being faced

Question 32

Three ways that managers promote ethical behavior?

Answer 32

Establishing a code of ethics
Providing ethical leadership
Offering ethics training

Question 33

Code of ethics

Answer 33

Should be specific enough to guide organizational members in what they’re supposed to do, yet loose enough to allow for freedom of judgement

Question 34

Ethical Leadership

Answer 34

which sets the tone for employee behavior. Managers must be good ethical role models both in words and, more importantly, in actions, which send even stronger signals to employees

Question 35

Critics

Answer 35

value systems learned in youths

Question 36

proponents

Answer 36

values can be learned and ethical problem solving increases ethical behavior, moral development, awareness

Question 37

Diversity

Answer 37

is visible in age, gender, race, physical attributes, styles of dress, and personality type

Question 38

workforce diversity

Answer 38

the ways in which people in an organization are both different from and similar to one another

Question 39

generational difference

Answer 39

present challenges ranging from appearance to technology and management style, which can be accommodated by flexibility