Chapter 4: Global Management

Question 1

The trend of the world economy toward becoming a more interdependent system

Answer 1

Globalization

Question 2

The “shrinking” of time and space as air travel and the electronic media have made it easier for the people around the globe to communicate with one another

Answer 2

Global village

Question 3

The increasing tendency of the economies of the world to interact with one another as one market instead of many national markets

Answer 3

Global economy

Question 4

A business firm with operations in several countries

Answer 4

Multinational corporation

Question 5

A nonprofit organization with operations in several countries

Answer 5

Multinational organization

Question 6

Managers who believe that their native country, culture, language, and behavior are superior to all ­others

Answer 6

Ethnocentric managers

Question 7

A narrow view in which people see things solely through their own perspective

Answer 7

Parochialism

Question 8

Managers who take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone

Answer 8

Polycentric managers

Question 9

Managers who accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective

Answer 9

Geocentric managers

Question 10

Foreign-owned manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens

Answer 10

Maquiladoras

Question 11

Using suppliers outside the company to provide goods and services

Answer 11

Outsourcing

Question 12

use of suppliers outside the United States to provide labor, goods, or services

Answer 12

Global outsourcing or offshoring

Question 13

Buying goods outside the country and reselling them domestically

Answer 13

Importing

Question 14

Producing goods domestically and selling them outside the country

Answer 14

Exporting

Question 15

Bartering goods for goods

Answer 15

Countertrading

Question 16

Company X allows a foreign company to pay it a fee to make or distribute X’s product or service

Answer 16

Licensing

Question 17

A form of licensing in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company’s brand name and a package of materials and services

Answer 17

Franchising

Question 18

A foreign subsidiary, or subordinate section of an organization, that is totally owned and controlled by an organization

Answer 18

Wholly owned subsidiary

Question 19

A foreign subsidiary that the owning organization has built from scratch

Answer 19

Greenfield venture

Question 20

The movement of goods and services among nations without political or economic obstruction

Answer 20

Free trade

Question 21

The use of government regulations to limit the import of goods and services

Answer 21

Trade protectionism

Question 22

A trade barrier in the form of a customs duty, or tax, levied mainly on imports

Answer 22

Tariffs

Question 23

A trade barrier in the form of a limit on the numbers of a product that can be imported

Answer 23

Import quotas

Question 24

The trade prohibition on certain types of products, services, or technology to another country for a specific reason

Answer 24

Saction

Question 25

A complete ban on the import or export of certain products

Answer 25

Embargoes

Question 26

Also known as an economic community, it is a group of nations within a geographical region that have agreed to remove trade barriers with one another

Answer 26

Trading bloc

Question 27

A trading bloc consisting of the United States, Canada, and Mexico

Answer 27

North American Free Trade Agreement (NAFTA)

Question 28

The United States, Mexico, and Canada renegotiated NAFTA in November 2018, drafting a new policy known as

Answer 28

United States-Mexico-Canada Agreement (USMCA)

Question 29

Union of 27 trading partners in Europe

Answer 29

European Union (EU)

Question 30

This trading status describes a condition in which a country grants other countries favorable trading treatment such as the reduction of import duties

Answer 30

Most favored nation

Question 31

The rate at which the currency of one area or country can be ­exchanged for the currency of another’s

Answer 31

Exchange rates

Question 32

The ability to operate in different cultural settings

Answer 32

Cross-cultural awareness

Question 33

The shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people

Answer 33

Culture

Question 34

Culture in which shared meanings are primarily derived from written and spoken words

Answer 34

Low-context culture

Question 35

Culture in which people rely heavily on situational cues for meaning when communicating with others

Answer 35

High-context culture

Question 36

Identifies four dimensions along which national cultures can be placed

Answer 36

Hofstede model of four cultural dimensions

Question 37

A massive and ongoing cross-cultural investigation of nine cultural dimensions involved in leadership and organizational processes

Answer 37

GLOBE project

Question 38

The standard kind of time orientation in U.S. business; a preference for doing one thing at a time

Answer 38

Monochronic time

Question 39

The standard kind of time orientation in Mediterranean, Latin American, and Arab cultures

Answer 39

Polychronic time

Question 40

A government’s seizure of a domestic or foreign company’s assets

Answer 40

Expropriation

Question 41

Act that makes it illegal for employees of U.S. companies to make “questionable” or “dubious” contributions to political decision makers in foreign nations

Answer 41

Foreign Corrupt Practices Act (1978)

Question 42

People living or working in a foreign country

Answer 42

Expatriates

Question 43

The situational or environmental characteristics that influence our behavior

Answer 43

Context