Quiz 3

Question 1

The _____ is a single European currency that replaced 12 national currencies and unify a huge marketplace.

Answer 1

Euro

Question 2

Go RVing, a U.S. company, built a subsidiary from scratch in England. This is an example of

Answer 2

Greenfield venture

Question 3

_____ refers to the degree to which people accept inequality in authority among institutions, organizations, and people.

Answer 3

Power distance

Question 4

Franchising is a form of

Answer 4

Licensing

Question 5

___ refers to a natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values.

Answer 5

Ethnocentrism

Question 6

_____ refers to a value characterized by people’s intolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity.

Answer 6

Uncertainty avoidance

Question 7

What reflects a cultural preference for cooperation, group decision-making, and quality of life?

Answer 7

Femininity

Question 8

The MNC management philosophy of ___ places emphasis on their home countries.

Answer 8

Ethnocentric

Question 9

What is an entry strategy in which the organization maintains its production facilities within its home country and transfers its products for sale in foreign markets?

Answer 9

Exporting

Question 10

A nation’s _____ includes the shared knowledge, beliefs and values, as well as the common modes of behavior and ways of thinking, among members of a society.

Answer 10

Culture

Question 11

Hofstede’s research included over 100,000 employees from what company across 40 countries?

Answer 11

IBM

Question 12

One dimension of the global mind-set concerns knowing about the global environment and global business, and truly understanding how cultures differ, and being able to interpret complex global changes. This dimensions is

Answer 12

Cognitive

Question 13

A company’s risk of loss of assets, earning power, or managerial control due to politically based events or action by host government is referred to as

Answer 13

Political risk

Question 14

One dimension of the global mind-set is about being able to behave in ways that build trusting relationships with people who are different from oneself. This dimensions is ___.

Answer 14

Social

Question 15

A foreign subsidiary over which an organization has complete control is called a

Answer 15

Wholly owned foreign affiliate