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When an organization acquires products made abroad and sells them domestically, it indulges in ________.


A) global sourcing
B) licensing
C) importing
D) franchising

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Which of the following types of global organizations reflects the geocentric attitude?


A) multidomestic corporation
B) transnational organization
C) global company
D) regional organization

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A country that is assertive, believes in acquiring money and goods, and is competitive in nature is said to ________.


A) be a collectivist
B) have a high power distance
C) be achievement oriented
D) have a long-term orientation

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C

Transnational organizations are also known as ________.


A) ethnocentric organizations
B) polycentric organizations
C) borderless organizations
D) multidomestic organizations

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Managers with a polycentric attitude tend to view every foreign operation as difficult and hard to understand.

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Americans tend to suffer from parochialism.

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Geert Hofstede's research found that countries varied on ________ dimensions of national culture.


A) eleven
B) five
C) seven
D) nine

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The United States, Canada, and Mexico are parties to the North American Free Trade Association.

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True

Which of the following dimensions of the Global Leadership and Organizational Behavior Effectiveness program is similar to Hofstede's nurturing dimension?


A) in-group collectivism
B) humane orientation
C) future orientation
D) institutional collectivism

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If Shana's company dropped its organizational structure based on country and reorganized into industry groups, it would best be considered a ________.


A) borderless organization
B) foreign subsidiary
C) global company
D) multidomestic corporation

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You plan to explain during your talk that the acronyms EU, NAFTA, and ASEAN refer to ________.


A) regional trade alliances
B) foreign airlines
C) soccer teams in Europe
D) new multinational corporations

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A global company reflects the ________.


A) regiocentric attitude
B) ethnocentric attitude
C) geocentric attitude
D) polycentric attitude

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Which of the following is the basic difference between multidomestic corporations and global companies?


A) Multidomestic corporations typically do business with more countries than global companies.
B) Multidomestic corporations are run by global companies but must be owned by a local, national company.
C) Multidomestic corporations decentralize management to the local country, while global companies centralize management in the home country.
D) Multidomestic corporations reflect an ethnocentric attitude, while global companies reflect a polycentric attitude.

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Which of the following is a method that companies might adopt in order to increase their direct foreign investment?


A) exporting
B) global sourcing
C) strategic alliances
D) licensees

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

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According to the text, which of the following is a typical definition of a multinational corporation?


A) It is a company that maintains operations in multiple countries.
B) It is a company that maintains franchises in multiple countries.
C) It is a company that has multiple home bases and manufacturing plants.
D) It is a company that pays corporate taxes in at least two countries.

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Parochialism is a tendency to ________.


A) think highly of the foreign country in which the organization is doing business
B) focus on best approaches and people from around the globe
C) view the world solely through one's own eyes and perspectives
D) let employees in the host country figure out how best to do things

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Which of the following arrangements involves the greatest commitment of resources and poses the greatest amount of risk?


A) exporting
B) franchising
C) foreign subsidiary
D) global sourcing

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Multidomestic corporations reflect the ________.


A) ethnocentric attitude
B) polycentric attitude
C) geocentric attitude
D) xenophobic attitude

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A manager who wishes to be successful in international business should avoid a(n) ________ attitude.


A) multicultural
B) multiracial
C) ethnocentric
D) geocentric

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C

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