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XCAT1123N T3

Total questions: 20

Worksheet time: 16mins

Name
Class
Date
1.

When a U.S. ship yard purchases raw materials from locations around the world, for example steel from China, this is called ________.

a)

licensing

b)

a joint venture

c)

global sourcing

d)

a global alliance

2.

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

a)

exchanges goods and services with consumers in other countries

b)

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

c)

uses resources from other countries

d)

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

3.

A multinational corporation (MNC) ________.

a)

is any organization that maintains operations in more than one country

b)

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

c)

includes any company that exports goods overseas

d)

is defined as any company that has no home base

4.

Franchising is used widely by ________.

a)

universities

b)

accounting firms

c)

restaurant chains

d)

electric power companies

5.

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

a)

foreign subsidiary

b)

franchise

c)

licensing agreement

d)

joint venture

6.

A Coca-Cola bottling plant in Bolivia is wholly owned by a local businessperson. What kind of venture is this plant likely to be?

a)

a franchise

b)

a licensed plant

c)

a foreign subsidiary

d)

a joint venture

7.

Shana is considering forming a partnership with a Dutch corporation that will create an entirely new company called Half Moon. What kind of enterprise will Half Moon be?

a)

a multidomestic corporation

b)

a foreign subsidiary

c)

a joint venture

d)

a domestic subsidiary

8.

Shana's company "went global" several years ago. Which of the following was likely to have been the first step it took in going global?

a)

outsourcing

b)

importing

c)

exporting

d)

licensing

9.

Bill Sanderson, a manager in a manufacturing firm in New York has a tendency to view the world only through his U.S.-based perspective. What can be deduced about his attitude?

a)

He has an elitist attitude

b)

He has a polycentric attitude

c)

He has a parochialistic attitude

d)

He has a geocentric attitude

10.

Melanie joined an international student association in order to better understand the views of students from other countries. She is trying to become more ________ in her attitude.

a)

parochialistic

b)

polycentric

c)

ethnocentric

d)

geocentric

11.

Samanex Corporation maintains production facilities in 13 different countries on three continents. Each facility is managed by a native of the country where it is located. This practice is indicative of a(n) ________ attitude.

a)

ethnocentric

b)

geocentric

c)

polycentric

d)

multicentric

12.

People with a parochial attitude do not recognize that others have different ways of living and working.

a)

TRUE

b)

FALSE

13.

Managers with an ethnocentric attitude do not trust foreign employees with key decisions or technology.

a)

TRUE

b)

FALSE

14.

Research shows that most of the jobs lost in the manufacturing sector are due to ________.

a)

free trade

b)

increased regulation

c)

higher trade barriers

d)

increased automation

15.

A corporation that uses an arrangement that eliminates artificial geographical barriers is known as a(n) ________.

a)

ethnocentric company

b)

polycentric organization

c)

borderless organization

d)

global company

16.

Melanie had been buying raw materials locally but she is being underpriced by her competitors. She thinks there might be lower-cost materials elsewhere. What advice would you give Melanie?

a)

She should engage in global sourcing.

b)

She should engage in licensing.

c)

She should engage in franchising.

d)

She should develop strategic alliances with foreign companies.

17.

Nathan uses ethnic craftsmen to make high quality oak furniture. If he decides to offer his furniture for sale in other countries, he will be engaging in ________.

a)

importing

b)

exporting

c)

licensing

d)

franchising

18.

Natalya operates a retail store in Romania. She buys consumer electronics from vendors in China and Japan to sell in her store. Natalya is engaging in ________.

a)

global sourcing

b)

licensing

c)

importing

d)

franchising

19.

Gao and James decide to enter into an agreement with a firm in Europe allowing them to use their software, brand name, and business methods in return for a lump sum payment and a percentage of sales. The European firm is a service organization that plans to use the software to serve its customers. Their agreement is a(n) ________.

a)

export agreement

b)

licensing agreement

c)

franchise agreement

d)

import agreement

20.

Adam has been hired by an organization that has a partnership with a foreign company. Both the partners share resources and knowledge while developing new products. Adam's organization has formed a ________.

a)

licensing company

b)

franchising company

c)

strategic alliance

d)

foreign subsidiary