Important Managerial Issues

Which one of the following is NOT a key characteristic of a global organization?

• exchanges goods and services with consumers in other countries

• employs high-level technical employees and managerial talent from other countries

• uses resources from other countries

• has a home country in which all decisions are made and into which all profits flow

A multinational corporation (MNC) ________.

• is any organization that maintains operations in more than one country

• is defined as a company that has its home base in the United States and various operations overseas

• includes any company that exports goods overseas

• is defined as any company that has no home base

A global corporation ________.

• centralizes management in a single home country

• decentralizes management so that each local country's operation is managed locally

• decentralizes management so there is no single home location

• has two main management locations located on different sides of the globe

Which one of the following best characterizes a transnational corporation?

• a single central home-country management

• an organization in which multiple operations function with a large degree of autonomy

• a loose alliance of totally separate, wholly independent companies

• a company that eliminates geographical boundaries

Which choice constitutes the typical first step for an organization that is "going global"?

• outsourcing

• franchising

• licensing

• strategic alliance

Franchising is used widely by ________.

• universities

• accounting firms

• restaurant chains

• electric power companies

A fully global organization might set up a ________ with a foreign company to create a new, independent company that produces a specific product.

• foreign subsidiary

• franchise

• licensing agreement

• joint venture

Of the approaches to pursuing international markets, developing a ________ involves the greatest commitment and risk.

• franchise

• joint venture

• strategic alliance

• foreign subsidiary

Joint ventures are a type of ________.

• license

• franchise

• foreign subsidiary

• strategic alliance

________ is a cultural dimension measured by Hofstede in which people identify strongly with a group within a society.

• Power distance

• Collectivism

• Individualism

• Uncertainty avoidance