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To be competitive in a global economy, Europeans must increase their level of


A) Population density.
B) Productivity.
C) Espionage activity.
D) Philanthropic contributions.
E) Wealth.

F) A) and D)
G) C) and E)

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An organizational model that consists of a company's overseas subsidiaries and is characterized by centralized decision making and tight control by the parent company over most aspects of worldwide operations is called the


A) International model.
B) Multinational model.
C) Global model.
D) Transnational model.
E) Intranational model.

F) B) and C)
G) C) and D)

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Samantha's company wants to use __________ to participate in the global marketplace.


A) licensing
B) franchising
C) exporting
D) joint ventures
E) wholly owned subsidiaries

F) A) and E)
G) D) and E)

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On Hofstede's power distance and individualism scales, the United States is very similar to France.

A) True
B) False

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Carrie Pinon, a chemical engineer from New Jersey, is being sent by her company, L'Oreal of France, to work in product development in China. Carrie would be considered a(n)


A) Third-country national.
B) Host-country national.
C) Globalite executive.
D) Expatriate.
E) Inpatriate.

F) A) and C)
G) A) and B)

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The passage of NAFTA has provided short-term benefits to which of the following industries?


A) The auto industry.
B) Grain producers.
C) The financial industry.
D) Capital goods suppliers.
E) All of these have benefited from NAFTA.

F) B) and C)
G) A) and E)

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Labor costs in China are about ________ those in Mexico.


A) one-third of
B) three times
C) the same as
D) seven times
E) 10 times

F) B) and E)
G) C) and D)

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Inpatriates are valuable because they bring with them extensive knowledge about how to operate effectively in their home countries.

A) True
B) False

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Mercury Fire Protection manufactures engines for its fire trucks in a central location in order to attain cost economies and then sends these engines to various subsidiaries for final assembly of the truck bodies in order to meet local safety specifications. Mercury uses the __________ model for global strategy.


A) global
B) transnational
C) international
D) maquilladora
E) worldwide

F) C) and E)
G) D) and E)

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The failure rate among expatriates is less than five percent.

A) True
B) False

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The multinational model of organization structure consists of


A) Large low-cost manufacturing facilities located in selected locations with products exported to various subsidiaries.
B) Subsidiaries located in countries where the company does business with much of the control exercised by the parent company.
C) Subsidiaries located in countries where the company does business with much of the control exercised by the subsidiaries.
D) Manufacturing various components at appropriate sites and assembling the components at national subsidiaries.
E) Extensive use of offshoring.

F) B) and C)
G) A) and E)

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The global strategy model that uses subsidiaries in each country and provides each a great deal of discretion to respond to local conditions is the __________ model.


A) international
B) multinational
C) global
D) transnational
E) domestic

F) A) and B)
G) A) and C)

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Which global strategy is Delta Company using?


A) Global.
B) International.
C) Transnational.
D) Multinational.
E) Domestic.

F) C) and E)
G) C) and D)

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In companies that adopt the __________ model of organizational structure, functions are centralized where it makes sense to do so, but a great deal of decision making also takes place at the local level.


A) international
B) multinational
C) global
D) transnational
E) multimedia

F) A) and B)
G) A) and C)

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In which two models of global strategy do manufacturing costs remain relatively high?


A) Global and transnational.
B) International and transnational.
C) Multinational and international.
D) Global and international.
E) Multinational and transnational.

F) A) and B)
G) A) and C)

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Explain the consequences of the increasing integration of the global economy.

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Universal needs exist when the tastes and preferences of consumers in different countries with regard to a product are similar.

A) True
B) False

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Inpatriates are foreign nationals that are sent abroad for a short period.

A) True
B) False

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Discuss how culture plays out in terms of ethical behavior. What can organizations do to manage these issues more effectively?

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Sarah's employees exhibited Hofstede's dimension of


A) High power distance.
B) Low power distance.
C) Individualism.
D) Femininity.
E) High uncertainty avoidance.

F) A) and E)
G) A) and B)

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