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WorksheetsXCAT1123N T3
Total questions: 20
Worksheet time: 16mins
When a U.S. ship yard purchases raw materials from locations around the world, for example steel from China, this is called ________.
licensing
a joint venture
global sourcing
a global alliance
Which 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 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
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
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 franchise
a licensed plant
a foreign subsidiary
a joint venture
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 multidomestic corporation
a foreign subsidiary
a joint venture
a domestic subsidiary
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?
outsourcing
importing
exporting
licensing
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?
He has an elitist attitude
He has a polycentric attitude
He has a parochialistic attitude
He has a geocentric attitude
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.
parochialistic
polycentric
ethnocentric
geocentric
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.
ethnocentric
geocentric
polycentric
multicentric
People with a parochial attitude do not recognize that others have different ways of living and working.
TRUE
FALSE
Managers with an ethnocentric attitude do not trust foreign employees with key decisions or technology.
TRUE
FALSE
Research shows that most of the jobs lost in the manufacturing sector are due to ________.
free trade
increased regulation
higher trade barriers
increased automation
A corporation that uses an arrangement that eliminates artificial geographical barriers is known as a(n) ________.
ethnocentric company
polycentric organization
borderless organization
global company
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?
She should engage in global sourcing.
She should engage in licensing.
She should engage in franchising.
She should develop strategic alliances with foreign companies.
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 ________.
importing
exporting
licensing
franchising
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 ________.
global sourcing
licensing
importing
franchising
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) ________.
export agreement
licensing agreement
franchise agreement
import agreement
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 ________.
licensing company
franchising company
strategic alliance
foreign subsidiary
