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Management 9th Edition By Richard L – Test Bank
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Chapter 2—The Evolution of Management Thinking
TRUE/FALSE
- A historical perspective provides a narrower way of thinking, a way of searching for patterns and determining whether they recur across time periods.
ANS: F PTS: 1 DIF: 1 REF: 33
NAT: AACSB Analytic | Creation of Value TYP: F
- A study of the past contributes to understanding both the present and the future.
ANS: T PTS: 1 DIF: 1 REF: 33
NAT: AACSB Analytic | Creation of Value TYP: F
- Studying history is a way to achieve strategic thinking, see the big picture, and improve conceptual skills.
ANS: T PTS: 1 DIF: 2 REF: 34
NAT: AACSB Analytic | Strategy TYP: F
- Social forces refer to those aspects of a culture that guide and influence relationships among people.
ANS: T PTS: 1 DIF: 1 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F
- Political forces are aspects of a culture that guide and influence relationships among people.
ANS: F PTS: 1 DIF: 1 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F
- Economic forces pertain to the availability, production, and distribution of resources in a society.
ANS: T PTS: 1 DIF: 1 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F
- During difficult times, managers look for ideas to help them cope with environmental turbulence and keep their organizations vital.
ANS: T PTS: 1 DIF: 2 REF: 35
NAT: AACSB Analytic | HRM TYP: F
- In the Manager’s Shoptalk of chapter 2, benchmarking and six sigma are the top two contemporary management tools.
ANS: F PTS: 1 DIF: 2 REF: 35
NAT: AACSB Analytic | Operations Management TYP: F
- The technology-driven workplace is the most current management perspective.
ANS: T PTS: 1 DIF: 2 REF: 36
NAT: AACSB Analytic | Information Technologies TYP: F
- The early study of management as we know it today began with what is now called the technology-driven workplace.
ANS: F PTS: 1 DIF: 2 REF: 36
NAT: AACSB Technology | Information Technologies TYP: F
- The classical perspective on management emerged during the early eighteenth century.
ANS: F PTS: 1 DIF: 2 REF: 36
NAT: AACSB Analytic | Leadership Principles TYP: F
- A bar graph that measures planned and completed work along each stage of production by time elapsed is called a Gantt chart.
ANS: T PTS: 1 DIF: 1 REF: 37
NAT: AACSB Analytic | Creation of Value TYP: F
- The humanistic perspective contains three subfields: scientific management, bureaucratic organizations, and administrative principles.
ANS: F PTS: 1 DIF: 2 REF: 37
NAT: AACSB Analytic | HRM TYP: F
- One of the criticisms of scientific management is it did not acknowledge variance among individuals.
ANS: T PTS: 1 DIF: 2 REF: 37
NAT: AACSB Analytic | HRM TYP: F
- Frederick W. Taylor developed Scientific Management and emphasized the fourteen principles of management that should guide managerial behavior.
ANS: F PTS: 1 DIF: 1 REF: 37
NAT: AACSB Analytic | Leadership Principles TYP: F
- Taylor was awarded the title of “father of scientific management” since he was the sole contributor in the area of scientific management.
ANS: F PTS: 1 DIF: 1 REF: 38
NAT: AACSB Analytic | Leadership Principles TYP: F
- Standardization of work and wage incentives are characteristics of behavioral science.
ANS: F PTS: 1 DIF: 2 REF: 38
NAT: AACSB Analytic | HRM TYP: F
- Scientific management developed a standard method for performing each job.
ANS: T PTS: 1 DIF: 1 REF: 38
NAT: AACSB Analytic | Leadership Principles TYP: F
- With clear definitions of authority and responsibility, division of labor is one of the six characteristics of the ideal bureaucracy.
ANS: T PTS: 1 DIF: 1 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F
- Administrative acts and decisions recorded in writing is one of the six characteristics of the ideal bureaucracy.
ANS: T PTS: 1 DIF: 1 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F
- One of the important reasons for the success of UPS is the concept of bureaucracy.
ANS: T PTS: 1 DIF: 2 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F
- Fayol’s Unity of Direction Principle emphasizes that each subordinate receives orders from one, and only one.
ANS: F PTS: 1 DIF: 2 REF: 40
NAT: AACSB Analytic | Leadership Principles TYP: F
- Unity of direction principle proposes that similar activities in an organization should be grouped together under one manager.
ANS: T PTS: 1 DIF: 1 REF: 40
NAT: AACSB Analytic | Leadership Principles TYP: F
- The scalar chain is a hypothetical chain that provides horizontal links between unionized workers in different departments in an organization.
ANS: F PTS: 1 DIF: 2 REF: 40
NAT: AACSB Analytic | Leadership Principles TYP: F
- Scientific management focused on employee competence, and administrative principles focused on work flow through the organization.
ANS: F PTS: 1 DIF: 2 REF: 40
NAT: AACSB Analytic | Leadership Principles TYP: F
- Follett and Barnard were early advocates of a more humanistic perspective on management that emphasized the importance of understanding human behavior, needs, and attitudes in the workplace as well as social interactions and group processes.
ANS: T PTS: 1 DIF: 2 REF: 41
NAT: AACSB Analytic | Leadership Principles TYP: F
- Unfortunately, Mary Parker Follett’s approach to leadership stressed the importance of engineering techniques rather than people.
ANS: F PTS: 1 DIF: 2 REF: 41
NAT: AACSB Analytic | Leadership Principles TYP: F
- A social group within an organization is part of the informal organization.
ANS: T PTS: 1 DIF: 1 REF: 41
NAT: AACSB Analytic | Reflective Thinking TYP: F
- Most early interpretations of the Hawthorne studies agreed that money was the cause of the increased output.
ANS: F PTS: 1 DIF: 2 REF: 42
NAT: AACSB Analytic | Motivation Concepts TYP: F
- The Hawthorne studies led to the early conclusion that positive human relations can lead to significantly higher performance.
ANS: T PTS: 1 DIF: 1 REF: 42
NAT: AACSB Analytic | Motivation Concepts TYP: F
- The scientific management perspective refers to the management thinking and practice that emphasizes satisfaction of employees’ basic needs is the key to increased worker productivity.
ANS: F PTS: 1 DIF: 2 REF: 42
NAT: AACSB Analytic | HRM TYP: F
- Maslow’s hierarchy of needs started with belongingness, progressed to safety, and finally to esteem.
ANS: F PTS: 1 DIF: 2 REF: 43
NAT: AACSB Analytic | Motivation Concepts TYP: F
- According to Douglas McGregor, Theory X and Theory Y provide two opposing views of workers, where Theory X recognizes that workers enjoy achievement and responsibility, while Theory Y recognizes that workers will avoid work whenever possible.
ANS: F PTS: 1 DIF: 1 REF: 43
NAT: AACSB Analytic | Motivation Concepts TYP: F
- Maslow’s hierarchy of needs started with safety needs.
ANS: F PTS: 1 DIF: 1 REF: 43
NAT: AACSB Analytic | HRM TYP: F
- Theory Y proposes that organizations can take advantage of the imagination and intellect of all of their employees.
ANS: T PTS: 1 DIF: 2 REF: 45
NAT: AACSB Analytic | Motivation Concepts TYP: F
- Organization development is a specific set of management techniques based in the behavioral science approach.
ANS: T PTS: 1 DIF: 1 REF: 45
NAT: AACSB Analytic | Creation of Value TYP: F
- The behavioral science approach develops theories about human behavior based on scientific methods and study.
ANS: T PTS: 1 DIF: 1 REF: 45
NAT: AACSB Analytic | Leadership Principles TYP: F
- The field of management that specializes in the physical production of goods or services refers to operations management.
ANS: T PTS: 1 DIF: 1 REF: 46
NAT: AACSB Analytic | Operations Management TYP: F
- Operations management represents the field of management that specializes in the physical production of goods and services.
ANS: T PTS: 1 DIF: 1 REF: 46
NAT: AACSB Analytic | Operations Management TYP: F
- The management science perspective emerged after World War II to treat problems associated with improving manufacturing.
ANS: F PTS: 1 DIF: 2 REF: 46
NAT: AACSB Analytic | Reflective Thinking TYP: F
- There are four components to the systems theory: inputs, outputs, feedback and the customers.
ANS: F PTS: 1 DIF: 1 REF: 47
NAT: AACSB Analytic | Creation of Value TYP: F
- From a systems theory viewpoint, outputs are the material, human, financial, or information resources used to produce goods and services.
ANS: F PTS: 1 DIF: 2 REF: 47
NAT: AACSB Analytic | Creation of Value TYP: F
- An open system is open to the suggestions and recommendations of its workers in systems theory.
ANS: F PTS: 1 DIF: 1 REF: 47
NAT: AACSB Analytic | Creation of Value TYP: F
- Closed systems must interact with the environment to survive.
ANS: F PTS: 1 DIF: 1 REF: 47
NAT: AACSB Analytic | Creation of Value TYP: F
- When the shop foreman receives and rewards valuable suggestions from its workers, and this leads to continual improvement of production, synergy has occurred.
ANS: T PTS: 1 DIF: 2 REF: 47
NAT: AACSB Analytic | Creation of Value TYP: A
- Contingency theory suggests that managers would be more successful if they learned the best way to manage and motivate their employees, and then applied this knowledge in a universally consistent way.
ANS: F PTS: 1 DIF: 2 REF: 48
NAT: AACSB Analytic | Leadership Principles TYP: A
- A contingency view perceives every situation as unique.
ANS: F PTS: 1 DIF: 2 REF: 48
NAT: AACSB Analytic | Strategy TYP: F
- The inherent focus of TQM is on managing the total organization to deliver quality to the customer.
ANS: T PTS: 1 DIF: 1 REF: 49
NAT: AACSB Analytic | Creation of Value TYP: F
- Benchmarking involves finding out what the customer wants.
ANS: F PTS: 1 DIF: 2 REF: 49
NAT: AACSB Analytic | Creation of Value TYP: F
- The implementation of small, incremental improvements in all areas of the organization on an ongoing basis refers to continuous improvement.
ANS: T PTS: 1 DIF: 1 REF: 49
NAT: AACSB Analytic | Creation of Value TYP: F
- In learning organizations, although team leadership is critical, the traditional boss is practically eliminated.
ANS: T PTS: 1 DIF: 2 REF: 50
NAT: AACSB Analytic | Creation of Value TYP: F
- Managers learn to think in terms of “control over” rather than “control with” others in learning organizations.
ANS: F PTS: 1 DIF: 1 REF: 50
NAT: AACSB Analytic | Leadership Principles TYP: F
- The fundamental unit in a learning organization is command-and-control management teams.
ANS: F PTS: 1 DIF: 2 REF: 50
NAT: AACSB Analytic | Creation of Value TYP: F
- Supply chain management refers to the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to consumers.
ANS: T PTS: 1 DIF: 1 REF: 50
NAT: AACSB Analytic | Creation of Value TYP: F
- The sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to consumers refers to enterprise resource planning.
ANS: F PTS: 1 DIF: 2 REF: 50
NAT: AACSB Analytic | Creation of Value TYP: F
- Customer relationship management systems collect and manage large amounts of data about customers and make them available to employees.
ANS: T PTS: 1 DIF: 1 REF: 51
NAT: AACSB Technology | Creation of Value TYP: F
- A supply chain is a network of multiple businesses and individuals that are connected through the flow of products or services.
ANS: T PTS: 1 DIF: 1 REF: 51
NAT: AACSB Analytic | Reflective Thinking TYP: F
- Outsourcing refers to contracting out selected functions or activities to other organizations that can do the work more cost-efficiently.
ANS: T PTS: 1 DIF: 1 REF: 52
NAT: AACSB Analytic | Creation of Value TYP: F
- A process whereby companies find out how others do something better than they do and then try to imitate or improve on it refers to outsourcing.
ANS: F PTS: 1 DIF: 1 REF: 52
NAT: AACSB Analytic | Creation of Value TYP: F
MULTIPLE CHOICE
- A(n) ____ perspective provides a broader way of thinking, a way of searching for patterns and determining whether they recur across time periods.
| a. | analytical |
| b. | futuristic |
| c. | systematic |
| d. | methodical |
| e. | historical |
ANS: A PTS: 1 DIF: 1 REF: 33
NAT: AACSB Analytic | Reflective Thinking TYP: F
- ____ forces refer to those aspects of a culture that guide and influence relationships among people.
| a. | Social |
| b. | Political |
| c. | Economic |
| d. | Technological |
| e. | Legal |
ANS: A PTS: 1 DIF: 1 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F
- Which of these forces comprises unwritten, common rules and perceptions about relationships?
| a. | Economic force |
| b. | Political force |
| c. | Social force |
| d. | Legal force |
| e. | Personal force |
ANS: C PTS: 1 DIF: 1 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F
- Which of these forces pertain to the availability, production, and distribution of resources in a society?
| a. | Social |
| b. | Political |
| c. | Economic |
| d. | Technological |
| e. | Legal |
ANS: C PTS: 1 DIF: 1 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F
- The stimulus for technological innovation is often found in which of these?
| a. | Social forces |
| b. | Political forces |
| c. | Economic forces |
| d. | Competitive forces |
| e. | All of these |
ANS: C PTS: 1 DIF: 1 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: F
- Strong anti-American sentiments in many parts of the world exemplify the effect of
| a. | economic forces. |
| b. | political forces. |
| c. | social forces. |
| d. | technological forces. |
| e. | human relations force. |
ANS: B PTS: 1 DIF: 2 REF: 34
NAT: AACSB Analytic | Environmental Influence TYP: A
- According to the Manager’s Shoptalk of chapter 2, which of the following is not in the top five contemporary management tools?
| a. | Collaborative innovation |
| b. | Mission and vision statements |
| c. | Customer segmentation |
| d. | Strategic planning |
| e. | Customer relationship management |
ANS: A PTS: 1 DIF: 1 REF: 35
NAT: AACSB Analytic | HRM TYP: F
- According to the Manager’s Shoptalk of chapter 2, North American executives are more likely to use tools such as
| a. | customer segmentation and business process reengineering. |
| b. | consumer ethnography and corporate blogs. |
| c. | strategic alliances and collaborative innovation. |
| d. | activity-based management and virtual teams. |
| e. | scenario planning and lean operations. |
ANS: C PTS: 1 DIF: 2 REF: 35
NAT: AACSB Analytic | Strategy TYP: F
- ____ is the most current management perspective.
| a. | The learning organization |
| b. | Contingency views |
| c. | Systems theory |
| d. | The technology-drive workplace |
| e. | Classical perspective |
ANS: D PTS: 1 DIF: 2 REF: 36
NAT: AACSB Analytic | Leadership Principles TYP: F
- The nineteenth and early twentieth centuries saw the development of which management perspective?
| a. | The human relations movement |
| b. | The behavioral sciences approach |
| c. | The classical perspective |
| d. | The quantitative management approach |
| e. | The TQM approach |
ANS: C PTS: 1 DIF: 2 REF: 36
NAT: AACSB Analytic | Leadership Principles TYP: F
- Which of these perspectives emphasized a rational, scientific approach to the study of management and sought to make organizations efficient operating machines?
| a. | The Humanistic Perspective |
| b. | The Behavioral Sciences Approach |
| c. | The Classical Perspective |
| d. | The TQM approach |
| e. | The Quantitative Management Approach |
ANS: C PTS: 1 DIF: 1 REF: 36
NAT: AACSB Analytic | Leadership Principles TYP: F
- Which of these is a subfield of the classical management perspective that emphasized scientifically determined changes in management practices as the solution to improving labor productivity?
| a. | The human relations movement |
| b. | The behavioral sciences approach |
| c. | The TQM approach |
| d. | The quantitative management approach |
| e. | The scientific management movement |
ANS: E PTS: 1 DIF: 1 REF: 37
NAT: AACSB Analytic | Leadership Principles TYP: F
- Frank Gilbreth felt that efficiency equated with ____.
| a. | one best way to do work |
| b. | leadership flows from the top down |
| c. | procedures and policies |
| d. | scientific management |
| e. | bureaucracy |
ANS: A PTS: 1 DIF: 2 REF: 37
NAT: AACSB Analytic | Leadership Principles TYP: F
- Who is considered the “first lady of management?”
| a. | Mary Parker Follett |
| b. | Lillian Gilbreth |
| c. | Carly Fioroni |
| d. | Maxine Weber |
| e. | Anne Adams |
ANS: B PTS: 1 DIF: 2 REF: 37
NAT: AACSB Analytic | Leadership Principles TYP: F
- The three subfields of the classical perspective include
| a. | quantitative management, behavioral science, and administrative management. |
| b. | bureaucratic organization, quantitative management, and the human relations movement. |
| c. | administrative management, bureaucratic organization, and scientific management. |
| d. | scientific management, quantitative management, and administrative management. |
| e. | none of these. |
ANS: C PTS: 1 DIF: 2 REF: 37
NAT: AACSB Analytic | Leadership Principles TYP: F
- ____ is considered the “father of scientific management.”
| a. | Frank B. Gilbreth |
| b. | Elton Mayo |
| c. | Henry Gantt |
| d. | Douglas McGregor |
| e. | Frederick W. Taylor |
ANS: E PTS: 1 DIF: 1 REF: 37
NAT: AACSB Analytic | Leadership Principles TYP: F
- Which of the following is a bar graph that measures planned and completed work along each stage of production by time elapsed?
| a. | Time and Work chart |
| b. | Gantt chart |
| c. | Time and Motion chart |
| d. | Production and Delivery chart |
| e. | Gilbreth chart |
ANS: B PTS: 1 DIF: 1 REF: 37
NAT: AACSB Analytic | Leadership Principles TYP: F
- Fredrick Taylor’s contributions were in the field of
| a. | scientific management. |
| b. | human resource management. |
| c. | human relations. |
| d. | quantitative management. |
| e. | total quality management. |
ANS: A PTS: 1 DIF: 1 REF: 37
NAT: AACSB Analytic | Leadership Principles TYP: F
- Which of the following is not a criticism of scientific management?
| a. | It does not appreciate the social context of work. |
| b. | It does not appreciate the higher needs of workers. |
| c. | It does not appreciate the careful study of tasks and jobs. |
| d. | It does not acknowledge variance among individuals. |
| e. | It tends to regard workers as uninformed and ignored their ideas and suggestions. |
ANS: C PTS: 1 DIF: 2 REF: 38
NAT: AACSB Analytic | Leadership Principles TYP: F
- Standardization of work and wage incentives are characteristics of
| a. | bureaucratic organizations. |
| b. | scientific management. |
| c. | quantitative management. |
| d. | administrative management. |
| e. | behavioral science. |
ANS: B PTS: 1 DIF: 2 REF: 38
NAT: AACSB Analytic | Leadership Principles TYP: F
- Which of these is a major criticism of scientific management?
| a. | It ignored the social context of work. |
| b. | It ignored the impact of compensation on performance. |
| c. | It overemphasized individual differences. |
| d. | It overemphasized the intelligence of workers. |
| e. | It emphasized the social context of work. |
ANS: A PTS: 1 DIF: 2 REF: 38
NAT: AACSB Analytic | Leadership Principles TYP: F
- Bureaucratic organizations approach was a subfield within the ____.
| a. | classical perspective |
| b. | systems theory |
| c. | scientific management |
| d. | learning organization |
| e. | management science view |
ANS: A PTS: 1 DIF: 2 REF: 38
NAT: AACSB Analytic | Leadership Principles TYP: F
- According to Weber’s ideas on bureaucracy, organizations should be based on which of these?
| a. | Personal loyalty |
| b. | Personal references |
| c. | Rational authority |
| d. | Family ties |
| e. | Charismatic authority |
ANS: C PTS: 1 DIF: 2 REF: 38
NAT: AACSB Analytic | Leadership Principles TYP: F
- Archies’ Antiques, Inc., is characterized by separation of management from ownership and by clearly defined lines of authority and responsibility. These characteristics are consistent with the principles of
| a. | scientific management. |
| b. | bureaucratic organizations. |
| c. | administrative management theory. |
| d. | human resource management. |
| e. | all of these. |
ANS: B PTS: 1 DIF: 2 REF: 38
NAT: AACSB Analytic | Leadership Principles TYP: A
- All of the following are characteristics of Weberian bureaucracy EXCEPT:
| a. | Labor is divided with clear definitions of authority and responsibility that are legitimized as official duties. |
| b. | Positions are organized in a hierarchy of authority, with each position under the authority of a higher one. |
| c. | All personnel are selected and promoted based on technical qualifications. |
| d. | Administrative acts and decisions are recorded in writing. |
| e. | Management is the same as the ownership of the organization. |
ANS: E PTS: 1 DIF: 3 REF: 38
NAT: AACSB Analytic | Leadership Principles TYP: F
- Max Weber felt selection of employees should be based on:
| a. | education |
| b. | competence |
| c. | connections |
| d. | management skills |
| e. | efficient systems |
ANS: B PTS: 1 DIF: 2 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F
- Positions organized in a hierarchy of authority is an important characteristic of
| a. | scientific management. |
| b. | bureaucratic organizations. |
| c. | quantitative management. |
| d. | the human relations movement. |
| e. | total quality management. |
ANS: B PTS: 1 DIF: 1 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F
- UPS is successful in the small package delivery market. One important reason for this success is the concept of
| a. | globalization. |
| b. | employee flexibility. |
| c. | loose standards. |
| d. | bureaucracy. |
| e. | non-bureaucratic organizational system. |
ANS: D PTS: 1 DIF: 2 REF: 39
NAT: AACSB Analytic | Leadership Principles TYP: F
- Scientific management focused on ____, and administrative principles focused on ____.
| a. | individual productivity, total organization |
| b. | organization productivity, individual effort |
| c. | efficient procedures, management by principle |
| d. | employee ability, employee loyalty |
| e. | employee competence, work flow through the organization |
ANS: A PTS: 1 DIF: 2 REF: 40
NAT: AACSB Analytic | Leadership Principles TYP: F
- Mary Parker Follett contributed to which field?
| a. | Administrative principles approach to management |
| b. | Scientific management approach |
| c. | Total quality management approach |
| d. | Quantitative approach to management |
| e. | Systems approach to management |
ANS: A PTS: 1 DIF: 1 REF: 40
NAT: AACSB Analytic | Leadership Principles TYP: F
- The assembly line is most consistent with which of the following general principles of management?
| a. | Unity of command |
| b. | Division of work |
| c. | Unity of direction |
| d. | Scalar chain |
| e. | Quality management |
ANS: C PTS: 1 DIF: 3 REF: 40
NAT: AACSB Analytic | Leadership Principles TYP: A
- The principle that similar activities in an organization should be grouped together under one manager is the essence of the classical perspective known as
| a. | unity of command. |
| b. | division of work. |
| c. | unity of direction. |
| d. | scalar chain. |
| e. | quality management. |
ANS: C PTS: 1 DIF: 2 REF: 40
NAT: AACSB Analytic | Leadership Principles TYP: F
- The use of specialization to produce more and better work with the same level of effort is consistent with the administrative management principle of
| a. | unity of command. |
| b. | unity of direction. |
| c. | scalar chain. |
| d. | division of work. |
| e. | none of these |
ANS: D PTS: 1 DIF: 1 REF: 40
NAT: AACSB Analytic | Leadership Principles TYP: F
- The ____ refers to a chain of authority extending from top to the bottom of the organization and including every employee.
| a. | unity of command |
| b. | division of labor |
| c. | unity of direction |
| d. | scalar chain |
| e. | None of these |
ANS: D PTS: 1 DIF: 1 REF: 40
NAT: AACSB Analytic | Leadership Principles TYP: F
- Mary Parker Follett thought of leadership as ____, rather than techniques.
| a. | systems |
| b. | top managers |
| c. | people |
| d. | efficiencies |
| e. | floor managers |
ANS: C PTS: 1 DIF: 2 REF: 41
NAT: AACSB Analytic | Leadership Principles TYP: F
- Chester Bernard felt that ____ could help a poorly managed organization.
| a. | bureaucracy |
| b. | line managers |
| c. | efficiencies |
| d. | informal relations |
| e. | top/down flow of information |
ANS: D PTS: 1 DIF: 2 REF: 41
NAT: AACSB Analytic | Leadership Principles TYP: F
- A social group within an organization is part of the
| a. | formal organizational structure. |
| b. | informal organization. |
| c. | scalar chain. |
| d. | reorganization process. |
| e. | top management level. |
ANS: B PTS: 1 DIF: 1 REF: 41
NAT: AACSB Analytic | Leadership Principles TYP: F
- A significant contribution of Chester Barnard was the concept of
| a. | bureaucracy. |
| b. | the informal organization. |
| c. | total quality management. |
| d. | scientific management. |
| e. | traditional theory of authority. |
ANS: B PTS: 1 DIF: 1 REF: 41
NAT: AACSB Analytic | Leadership Principles TYP: F
- The ____ emphasized the importance of understanding human behaviors, needs, and attitudes in the workplace as well as social interactions and group processes.
| a. | humanistic perspective |
| b. | classical perspective |
| c. | scientific management |
| d. | bureaucratic organizations |
| e. | contingency perspective |
ANS: A PTS: 1 DIF: 1 REF: 41
NAT: AACSB Analytic | Leadership Principles TYP: F
- Which of these refers to the management thinking and practice that emphasizes satisfaction of employees’ basic needs is the key to increased worker productivity?
| a. | Scientific management perspective |
| b. | Human resource perspective |
| c. | Management science perspective |
| d. | Behavioral sciences approach |
| e. | Human relations movement |
ANS: E PTS: 1 DIF: 2 REF: 42
NAT: AACSB Analytic | Leadership Principles TYP: F
- Most early interpretations of the Hawthorne studies argued that the factor that best explained increased output was
| a. | money. |
| b. | days off. |
| c. | human relations. |
| d. | lighting. |
| e. | free food. |
ANS: C PTS: 1 DIF: 2 REF: 42
NAT: AACSB Analytic | Motivation Concepts TYP: F
- The findings provided by the Hawthorne Studies provided the impetus for the ____, despite flawed methodology or inaccurate conclusions.
| a. | classical perspective |
| b. | humanistic perspective |
| c. | scientific management |
| d. | bureaucratic organizations |
| e. | contingency perspective |
ANS: B PTS: 1 DIF: 2 REF: 42
NAT: AACSB Analytic | Motivation Concepts TYP: F
- The human resources perspective of management links motivation theories with ____.
| a. | top management |
| b. | employee tasks |
| c. | floor managers |
| d. | efficiencies |
| e. | profit maximization |
ANS: B PTS: 1 DIF: 2 REF: 43
NAT: AACSB Analytic | HRM TYP: F
- A “dairy farm” view of management, i.e., contented cows give more milk, so satisfied workers will give more work was espoused by
| a. | human relations management. |
| b. | human resource perspective. |
| c. | behavioral science approach. |
| d. | management science perspective. |
| e. | none of these. |
ANS: A PTS: 1 DIF: 2 REF: 43
NAT: AACSB Analytic | Leadership Principles TYP: F
- Maslow’s hierarchy of needs started with which of these needs?
| a. | Esteem |
| b. | Love |
| c. | Safety |
| d. | Physiological |
| e. | Belongingness |
ANS: D PTS: 1 DIF: 1 REF: 43
NAT: AACSB Analytic | Motivation Concepts TYP: F
- Tommy believes his employees are responsible, creative, and able to work with minimal direction. He is a
| a. | Theory X manager. |
| b. | Theory Y manager. |
| c. | Theory Z manager. |
| d. | Theory A manager. |
| e. | contingency theory manager. |
ANS: B PTS: 1 DIF: 2 REF: 43
NAT: AACSB Analytic | Motivation Concepts TYP: A
- Beth Brant, production supervisor at Trustworthy Tools Mfg., Inc. believes that her employees dislike work, avoid responsibility, and therefore they need to be controlled and directed. Beth is a
| a. | Theory X manager. |
| b. | Theory Y manager. |
| c. | realistic manager. |
| d. | Theory Z manager. |
| e. | Theory J manager. |
ANS: A PTS: 1 DIF: 3 REF: 43
NAT: AACSB Analytic | Motivation Concepts TYP: A
- According to Douglas McGregor, the classical perspective on management is consistent with which of the following?
| a. | Theory X manager |
| b. | Theory Y manager |
| c. | Theory Z manager |
| d. | Theory A manager |
| e. | None of these |
ANS: A PTS: 1 DIF: 2 REF: 45
NAT: AACSB Analytic | Motivation Concepts TYP: F
- The behavioral sciences approach is based on which of the following disciplines?
| a. | Anthropology |
| b. | Economics |
| c. | Sociology |
| d. | Psychology |
| e. | All of these |
ANS: E PTS: 1 DIF: 1 REF: 45
NAT: AACSB Analytic | Leadership Principles TYP: F
- Organizational development is one specific set of management techniques based in the ____ approach.
| a. | management science |
| b. | systems theory |
| c. | behavioral sciences |
| d. | scientific management |
| e. | quantitative |
ANS: C PTS: 1 DIF: 2 REF: 45
NAT: AACSB Analytic | Creation of Value TYP: F
- The management science perspective emerged after World War II to treat problems associated with
| a. | modern global warfare. |
| b. | environmental issues. |
| c. | employee involvement. |
| d. | Germany. |
| e. | improving manufacturing. |
ANS: A PTS: 1 DIF: 2 REF: 46
NAT: AACSB Analytic | Operations Management TYP: F
- The management science perspective applies all of the following to managerial problems EXCEPT
| a. | statistics. |
| b. | qualitative techniques. |
| c. | mathematics. |
| d. | quantitative techniques. |
| e. | all of these are correct. |
ANS: B PTS: 1 DIF: 2 REF: 46
NAT: AACSB Analytic | Operations Management TYP: F
- Operations research grew out of World War II groups and is based on ____.
| a. | group dynamics |
| b. | employees in crisis |
| c. | production in turbulent times |
| d. | mathematical equations |
| e. | a humanistic approach |
ANS: D PTS: 1 DIF: 2 REF: 46
NAT: AACSB Analytic | Operations Management TYP: F
- ____ would be classified as input for Coca-Cola, Inc.
| a. | Soda |
| b. | Advertising |
| c. | Water |
| d. | Employee satisfaction |
| e. | All of these |
ANS: C PTS: 1 DIF: 2 REF: 47
NAT: AACSB Analytic | Creation of Value TYP: A
- Which of the following would be classified as an output for Coca-Cola, Inc.?
| a. | Soda |
| b. | Profits |
| c. | Employee satisfaction |
| d. | All of these |
| e. | None of these |
ANS: D PTS: 1 DIF: 3 REF: 47
NAT: AACSB Analytic | Creation of Value TYP: A
- According to the systems theory, a beautician at a hair salon would be a(n)
| a. | output. |
| b. | environment. |
| c. | input. |
| d. | transformation process. |
| e. | none of these. |
ANS: C PTS: 1 DIF: 3 REF: 47
NAT: AACSB Analytic | Creation of Value TYP: A
- For IBM, according to the systems theory, which of these would not be an input?
| a. | Raw material |
| b. | Information |
| c. | Financial resources |
| d. | Human resources |
| e. | Employee satisfaction |
ANS: E PTS: 1 DIF: 2 REF: 47
NAT: AACSB Analytic | Creation of Value TYP: A
- ____ is not a component of systems theory.
| a. | Inputs |
| b. | Autonomy |
| c. | Feedback |
| d. | Environment |
| e. | Outputs |
ANS: B PTS: 1 DIF: 2 REF: 47
NAT: AACSB Analytic | Creation of Value TYP: F
- Which of the following, according to the systems theory, is transformation process for a business?
| a. | Incoming trainees |
| b. | Retiring employees |
| c. | Managers |
| d. | Training |
| e. | Recruiters |
ANS: D PTS: 1 DIF: 2 REF: 47
NAT: AACSB Analytic | Creation of Value TYP: A
- The teamwork philosophy is based in part on the assumption that five people working together can produce more than five people working individually. This philosophy is consistent with the concept of
| a. | transformation. |
| b. | entropy. |
| c. | synergy. |
| d. | feedback. |
| e. | quality. |
ANS: C PTS: 1 DIF: 3 REF: 47
NAT: AACSB Analytic | Creation of Value TYP: A
Chapter 4—Managing in a Global Environment
TRUE/FALSE
- In today’s world, every manager needs to think locally.
ANS: F PTS: 1 DIF: 2 REF: 95
NAT: AACSB Analytic | Environmental Influence TYP: F
- A global mind-set and international experience are fast becoming prerequisites for managerial success.
ANS: T PTS: 1 DIF: 2 REF: 95
NAT: AACSB Analytic | Environmental Influence TYP: F
- Business has become a unified, global field as trade barriers fall, communication becomes faster and cheaper, and consumer tastes converge.
ANS: T PTS: 1 DIF: 2 REF: 96
NAT: AACSB Analytic | Environmental Influence TYP: F
- The reality of today’s borderless companies also means that consumers can easily identify from which country they are buying.
ANS: F PTS: 1 DIF: 2 REF: 97
NAT: AACSB Analytic | Environmental Influence TYP: F
- ABC Manufacturing is in the domestic stage. It has its market potential open to the countries that border its home country.
ANS: F PTS: 1 DIF: 2 REF: 97
NAT: AACSB Analytic | Environmental Influence TYP: A
- To deal with the marketing of products in several countries individually, a company in the international stage often uses an international division.
ANS: T PTS: 1 DIF: 1 REF: 97
NAT: AACSB Analytic | Environmental Influence TYP: F
- The second stage in the process of globalization is the international stage, where the company usually adopts a multidomestic approach.
ANS: T PTS: 1 DIF: 2 REF: 97
NAT: AACSB Analytic | Environmental Influence TYP: F
- The multinational stage of corporate international development transcends any single home country. The ownership, control, and top management tend to be dispersed among several nationalities.
ANS: F PTS: 1 DIF: 1 REF: 97
NAT: AACSB Analytic | Environmental Influence TYP: F
- An example of global sourcing is seen when Gap, Inc uses low-cost Caribbean labor to cheaply produce their clothing, and then finish off and sell their clothing in the United States.
ANS: T PTS: 1 DIF: 2 REF: 97
NAT: AACSB Analytic | Environmental Influence TYP: A
- Today, the number of global or stateless corporations is decreasing and the awareness of national borders is increasing.
ANS: F PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F
- With exporting, the corporation transfers its products for sale and its production facilities in foreign countries.
ANS: F PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F
- Seeking cheaper sources of materials or labor offshore is called offshoring.
ANS: T PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F
- Countertrade is the barter of products for products rather than the sale of products for currency.
ANS: T PTS: 1 DIF: 1 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: F
- An estimated 55 percent of world trade is countertrade.
ANS: F PTS: 1 DIF: 2 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: F
- When Harbor Trades, a Korean-based company, makes resources including technology, managerial skills, and patent and trademark rights available to Nano Technologies, a Russian company whereby allowing Nano to make products similar to CBA, it is engaging in a countertrade agreement.
ANS: F PTS: 1 DIF: 2 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: A
- A form of direct investment is franchising.
ANS: F PTS: 1 DIF: 1 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: F
- Joint venture is the most risky type of direct investment.
ANS: F PTS: 1 DIF: 2 REF: 100
NAT: AACSB Analytic | Environmental Influence TYP: F
- When a company builds a subsidiary from scratch in a foreign country it is called a greenfield venture.
ANS: T PTS: 1 DIF: 1 REF: 100
NAT: AACSB Analytic | Environmental Influence TYP: F
- A Greenfield venture is an entry strategy in which the organization is involved in managing its production facilities in a foreign country.
ANS: F PTS: 1 DIF: 2 REF: 100
NAT: AACSB Analytic | Strategy TYP: F
- Direct investing means that the company is involved in managing the productive assets, which distinguishes it from other entry strategies that permit less managerial control.
ANS: T PTS: 1 DIF: 2 REF: 100
NAT: AACSB Analytic | Strategy TYP: F
- Outsourcing is perhaps the most widespread approach to international involvement in China and India.
ANS: T PTS: 1 DIF: 2 REF: 101
NAT: AACSB Analytic | Environmental Influence TYP: F
- Infrastructure management is the management of business operations conducted in more than one country.
ANS: F PTS: 1 DIF: 2 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F
- The basic management functions of planning, organizing, leading, and controlling are the same whether a company operates domestically or internationally.
ANS: T PTS: 1 DIF: 2 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F
- The sub-divisions of the international environment are the economic, the sociocultural, and the legal-political environments.
ANS: T PTS: 1 DIF: 2 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F
- Some economic environments of business include resource and product markets, language, religion, and per capita income.
ANS: F PTS: 1 DIF: 1 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F
- A country’s physical facilities that support economic activities make up its infrastructure.
ANS: T PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F
- The criterion traditionally used to classify countries as developed or developing is per capita income.
ANS: T PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F
- LDC’s are less developed countries and tend to be found in the Southern Hemisphere including Africa, Asia and South America.
ANS: T PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F
- Because of cheap labor, most international business firms are headquartered in the less developed countries of Asia and South America.
ANS: F PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F
- The turnover rate is the rate at which one country’s currency is exchanged for another country’s.
ANS: F PTS: 1 DIF: 2 REF: 104
NAT: AACSB Analytic | Environmental Influence TYP: F
- Market risk is defined as the risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments.
ANS: F PTS: 1 DIF: 2 REF: 104
NAT: AACSB Analytic | Environmental Influence TYP: F
- Changes in the exchange rates can have major implications for the profitability of international operations.
ANS: T PTS: 1 DIF: 1 REF: 104
NAT: AACSB Analytic | Environmental Influence TYP: F
- The countries experiencing political, ethnic, and religious stability face the greatest threat of violence.
ANS: F PTS: 1 DIF: 1 REF: 105
NAT: AACSB Analytic | Environmental Influence TYP: F
- A company’s political risk includes riots, revolutions, civil disorders, and frequent changes in government.
ANS: F PTS: 1 DIF: 3 REF: 105
NAT: AACSB Analytic | Environmental Influence TYP: F
- Unfortunately, many U.S. managers fail to realize that the values and behaviors that typically govern how business is done in the United States do not translate to the rest of the world.
ANS: T PTS: 1 DIF: 2 REF: 105
NAT: AACSB Analytic | Environmental Influence TYP: F
- Countries that value high power distances normally have cities that are geographically separated and so have the need to transport electrical energy over large distances.
ANS: F PTS: 1 DIF: 2 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F
- The social value of uncertainty avoidance is evident in countries like Japan which support beliefs that provide stability and conformity among its citizenry.
ANS: T PTS: 1 DIF: 1 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F
- In countries with strong masculine social values including Austria and Japan, both men and women subscribe to the dominant masculine value.
ANS: T PTS: 1 DIF: 1 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F
- Collectivism means a preference for a tightly knit social framework in which individuals look after one another and organizations protect their members’ interests.
ANS: T PTS: 1 DIF: 1 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F
- The fifth dimension of Hofstede’s social values is preliminary-term orientation and extended-term orientation.
ANS: F PTS: 1 DIF: 2 REF: 107
NAT: AACSB Analytic | Environmental Influence TYP: F
- According to the GLOBE Project, a society with a high performance orientation places high emphasis on performance and rewards people for performance improvements and excellence.
ANS: T PTS: 1 DIF: 1 REF: 107
NAT: AACSB Analytic | Environmental Influence TYP: F
- According to the GLOBE Project, gender differentiation refers to the extent to which a society maximizes gender role differences.
ANS: T PTS: 1 DIF: 1 REF: 107
NAT: AACSB Analytic | Environmental Influence TYP: F
- According to Manager’s Shoptalk in Chapter 4, the polite way to give your business card to a Japanese business person is when first meeting, presenting your card with both hands.
ANS: T PTS: 1 DIF: 1 REF: 108
NAT: AACSB Analytic | Environmental Influence TYP: F
- According to Manager’s Shoptalk in Chapter 4, being on-time for appointments is very important in Brazil.
ANS: F PTS: 1 DIF: 2 REF: 108
NAT: AACSB Analytic | Environmental Influence TYP: F
- Social values greatly influence organizational functioning and management styles.
ANS: T PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F
- According to the GLOBE Value Dimensions, Japan and Russia both have very high performance orientation.
ANS: F PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F
- A low-context culture is a culture in which communication is used to enhance personal relationships.
ANS: F PTS: 1 DIF: 2 REF: 109
NAT: AACSB Analytic | Environmental Influence TYP: F
- Linguistic pluralism occurs in countries like India where more than one language exist.
ANS: T PTS: 1 DIF: 2 REF: 110
NAT: AACSB Analytic | Environmental Influence TYP: F
- A high-context interaction requires more time because a relationship has to be developed, and trust and friendship must be established.
ANS: T PTS: 1 DIF: 2 REF: 110
NAT: AACSB Analytic | Environmental Influence TYP: F
- German, Swiss, and North American cultures are among the high-context cultures.
ANS: F PTS: 1 DIF: 2 REF: 110
NAT: AACSB Analytic | Environmental Influence TYP: F
- When an organization has an instrumental attitude toward people it treats employees as a resource to be used.
ANS: T PTS: 1 DIF: 2 REF: 111
NAT: AACSB Analytic | Environmental Influence TYP: F
- When an organization has a humanistic attitude, it values employees as an end in themselves.
ANS: T PTS: 1 DIF: 2 REF: 111
NAT: AACSB Analytic | Environmental Influence TYP: F
- Ethnocentrism refers to a natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values.
ANS: T PTS: 1 DIF: 1 REF: 111
NAT: AACSB Analytic | Environmental Influence TYP: F
- Ethnocentrism refers to a natural tendency of people to regard their own culture as inferior to other cultures.
ANS: F PTS: 1 DIF: 1 REF: 111
NAT: AACSB Analytic | Environmental Influence TYP: F
- A tendency to regard their own culture as superior and to downgrade other cultures reflects an attitude called geocentric.
ANS: F PTS: 1 DIF: 1 REF: 111
NAT: AACSB Analytic | Environmental Influence TYP: F
- The European Union brings greater trade liberalization in goods, information, technological developments, and services.
ANS: F PTS: 1 DIF: 3 REF: 112
NAT: AACSB Analytic | Environmental Influence TYP: F
- An organization developed for the purpose of eliminating tariffs in trading between Canada and the United States is called The North American Freedom of Tariffs Administration (NAFTA).
ANS: F PTS: 1 DIF: 2 REF: 113
NAT: AACSB Analytic | Environmental Influence TYP: F
- Fifteen member states of the EU have adopted the rupee, as a single European currency.
ANS: F PTS: 1 DIF: 2 REF: 113
NAT: AACSB Analytic | Environmental Influence TYP: F
- Large international firms typically are called multinational corporations.
ANS: T PTS: 1 DIF: 1 REF: 114
NAT: AACSB Analytic | Environmental Influence TYP: F
- A multinational corporation typically receives more than 25 percent of its total sales revenues from operations inside the parent’s home country.
ANS: F PTS: 1 DIF: 2 REF: 114
NAT: AACSB Analytic | Environmental Influence TYP: F
- An MNC is managed as an integrated worldwide business system.
ANS: T PTS: 1 DIF: 1 REF: 115
NAT: AACSB Analytic | Environmental Influence TYP: F
- The primary emphasis of polycentric companies is on their home countries.
ANS: F PTS: 1 DIF: 2 REF: 115
NAT: AACSB Analytic | Environmental Influence TYP: F
- Most managers, given the trend toward globalization, do not need preparation to work in foreign cultures.
ANS: F PTS: 1 DIF: 2 REF: 115
NAT: AACSB Analytic | Environmental Influence TYP: F
- Geocentric companies are truly world-oriented and favor no specific country.
ANS: T PTS: 1 DIF: 2 REF: 115
NAT: AACSB Analytic | Environmental Influence TYP: F
- Culture shock refers to a person’s ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.
ANS: F PTS: 1 DIF: 2 REF: 116
NAT: AACSB Analytic | Environmental Influence TYP: F
- Cultural intelligence refers to a person’s ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses.
ANS: T PTS: 1 DIF: 2 REF: 116
NAT: AACSB Analytic | Environmental Influence TYP: F
- Culture shock refers to the frustration and anxiety that result from constantly being subjected to strange and unfamiliar cues about what to do and how to do it.
ANS: T PTS: 1 DIF: 1 REF: 116
NAT: AACSB Analytic | Environmental Influence TYP: F
- There are three components to cultural intelligence: cognitive, emotional, and physical.
ANS: T PTS: 1 DIF: 2 REF: 116
NAT: AACSB Analytic | Environmental Influence TYP: F
- In Russia, employees often do not understand participatory decision making.
ANS: F PTS: 1 DIF: 2 REF: 118
NAT: AACSB Analytic | Environmental Influence TYP: F
- Expatriates receive cross-cultural training that develops language skills and provides cultural and historical orientation.
ANS: T PTS: 1 DIF: 2 REF: 95
NAT: AACSB Analytic | Environmental Influence TYP: F
- In Japan, workers are motivated to satisfy the company.
ANS: T PTS: 1 DIF: 2 REF: 119
NAT: AACSB Analytic | Environmental Influence TYP: F
MULTIPLE CHOICE
- A(n) ____ and ____ experience are fast becoming prerequisites for managerial success.
| a. | domestic mind-set; leadership |
| b. | global mind-set; international |
| c. | open-mind; manufacturing |
| d. | local mind-set; forecasting |
| e. | family-oriented mind-set; leadership |
ANS: B PTS: 1 DIF: 2 REF: 95
NAT: AACSB Analytic | Environmental Influence TYP: F
- Today’s companies compete in a ____.
| a. | growingly domestic |
| b. | low-context culture |
| c. | high-context culture |
| d. | Greenfield economy |
| e. | borderless world |
ANS: E PTS: 1 DIF: 2 REF: 96
NAT: AACSB Analytic | Environmental Influence TYP: F
- Companies that think ____ have a competitive edge.
| a. | globally |
| b. | regionally |
| c. | nationally |
| d. | strategically |
| e. | “customers first” |
ANS: A PTS: 1 DIF: 2 REF: 97
NAT: AACSB Analytic | Environmental Influence TYP: F
- In which stage, market potential is limited to home country, with all production and marketing facilities located at home?
| a. | Domestic |
| b. | International |
| c. | Global |
| d. | Multinational |
| e. | Stateless |
ANS: A PTS: 1 DIF: 1 REF: 97
NAT: AACSB Analytic | Environmental Influence TYP: F
- In the ____ stage a company usually adopts a multidomestic approach.
| a. | Global |
| b. | Multinational |
| c. | Stateless |
| d. | International |
| e. | Domestic |
ANS: D PTS: 1 DIF: 2 REF: 97
NAT: AACSB Analytic | Environmental Influence TYP: F
- Global Dandelion, with marketing and production facilities located in many countries, is participating at what stage in the international arena?
| a. | International stage |
| b. | Global stage |
| c. | Domestic stage |
| d. | Multinational stage |
| e. | Interdomestic stage |
ANS: D PTS: 1 DIF: 2 REF: 97
NAT: AACSB Analytic | Environmental Influence TYP: A
- Quality-cast Telecom with an international division would be participating in what stage of the international arena?
| a. | Domestic stage |
| b. | International stage |
| c. | Multinational stage |
| d. | Global stage |
| e. | Binational stage |
ANS: B PTS: 1 DIF: 2 REF: 97
NAT: AACSB Analytic | Environmental Influence TYP: A
- The process of globalization typically passes through all of the following stages EXCEPT
| a. | domestic stage. |
| b. | global stage. |
| c. | international stage. |
| d. | interdomestic stage. |
| e. | multinational stage. |
ANS: D PTS: 1 DIF: 1 REF: 97
NAT: AACSB Analytic | Environmental Influence TYP: F
- Stateless stage is also referred to as the ____ stage.
| a. | multinational |
| b. | global |
| c. | multidomestic |
| d. | international |
| e. | domestic |
ANS: B PTS: 1 DIF: 1 REF: 97
NAT: AACSB Analytic | Environmental Influence TYP: F
- Color Copiers operates in a true global fashion, making sales and acquiring resources in whatever country offers the best opportunities and lowest cost, what stage of international development is it in?
| a. | Stateless stage |
| b. | Multinational stage |
| c. | International stage |
| d. | Domestic stage |
| e. | Multidomestic stage |
ANS: A PTS: 1 DIF: 3 REF: 97
NAT: AACSB Analytic | Environmental Influence TYP: A
- Which of the following refers to engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country?
| a. | Franchising |
| b. | Licensing |
| c. | Market entry strategy |
| d. | Outsourcing |
| e. | Activity |
ANS: D PTS: 1 DIF: 1 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F
- The Maquiladora industry along the Texas-Mexico border uses cheap labor for assembling products. This lowers the price for U.S. consumers and is an example of
| a. | licensing. |
| b. | joint venture. |
| c. | outsourcing. |
| d. | franchising. |
| e. | none of these. |
ANS: C PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F
- Most firms begin with which strategy to enter foreign markets?
| a. | Exporting |
| b. | Greenfield venture |
| c. | Joint venture |
| d. | Acquisition |
| e. | Direct investment |
ANS: A PTS: 1 DIF: 1 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F
- Which of the following is an entry strategy in which the organization maintains its production facilities within its home country and transfers its products for sale in foreign markets?
| a. | Franchising |
| b. | Licensing |
| c. | Exporting |
| d. | Greenfield venture |
| e. | Joint venture |
ANS: C PTS: 1 DIF: 1 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F
- What is exporting?
| a. | Countertrade |
| b. | The barter of products for products, often used in developing nations |
| c. | Items produced in the home country for sale in foreign markets |
| d. | All of these |
| e. | None of these |
ANS: D PTS: 1 DIF: 2 REF: 98
NAT: AACSB Analytic | Environmental Influence TYP: F
- A form of exporting to less-developed countries is called
| a. | licensing. |
| b. | franchising. |
| c. | greenfield venture. |
| d. | joint venture. |
| e. | countertrade. |
ANS: E PTS: 1 DIF: 1 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: F
- Heineken begins by exporting its product into new markets, and then ____ to a local brewer to establish its position in the market.
| a. | countertrades |
| b. | licenses |
| c. | exports |
| d. | franchises |
| e. | markets |
ANS: B PTS: 1 DIF: 1 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: A
- Which of the following is a form of franchising?
| a. | Direct investing |
| b. | Licensing |
| c. | Exporting |
| d. | Countertrade |
| e. | Barter trade |
ANS: B PTS: 1 DIF: 1 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: F
- Your company is interested in producing and marketing a line of coffee that will penetrate the Chinese market. Your firm is willing to supply the equipment, products, product ingredients, trademark, and standardized operating system. What type of strategy are you going to use?
| a. | Wholly owned foreign affiliate |
| b. | A greenfield venture agreement |
| c. | A franchise |
| d. | An export agreement |
| e. | Barter trade |
ANS: C PTS: 1 DIF: 2 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: A
- Which of the following pairs of alternatives closely resemble each other in the amount of ownership, control and risk obtained in operating international businesses?
| a. | Direct investment/franchising |
| b. | Wholly owned foreign affiliate/countertrade |
| c. | Exporting/licensing |
| d. | Franchising/licensing |
| e. | All of these |
ANS: D PTS: 1 DIF: 3 REF: 99
NAT: AACSB Analytic | Environmental Influence TYP: F
- A foreign subsidiary over which an organization has complete control is called a
| a. | joint venture. |
| b. | licensing agreement. |
| c. | franchise. |
| d. | wholly owned foreign affiliate. |
| e. | foreign venture. |
ANS: D PTS: 1 DIF: 2 REF: 100
NAT: AACSB Analytic | Environmental Influence TYP: F
- The Write Pens, Inc. wants to reduce transferring costs by producing closer to the consumer in a foreign country. This will also help in reducing transportation and storage costs. Which strategy would be the best to use given the circumstances?
| a. | Franchising |
| b. | Exporting |
| c. | Direct investing |
| d. | Barter agreement |
| e. | Licensing |
ANS: C PTS: 1 DIF: 2 REF: 100
NAT: AACSB Analytic | Environmental Influence TYP: A
- Go RVing, a U.S. company, built a subsidiary from scratch in England. This is an example of
| a. | franchising. |
| b. | greenfield venture. |
| c. | joint venture. |
| d. | exporting. |
| e. | licensing. |
ANS: B PTS: 1 DIF: 2 REF: 100
NAT: AACSB Analytic | Environmental Influence TYP: A
- The Mercedes-Benz plant in Alabama is an example of a ____.
| a. | greenfield venture |
| b. | joint venture |
| c. | direct investment |
| d. | foreign affiliate |
| e. | direct acquisition |
ANS: A PTS: 1 DIF: 2 REF: 100
NAT: AACSB Analytic | Environmental Influence TYP: F
- As a first step into international business, which two countries are most companies going to today?
| a. | Russia and Japan |
| b. | Sweden and Germany |
| c. | China and India |
| d. | Brazil and Philippines |
| e. | Indonesia and Brazil |
ANS: C PTS: 1 DIF: 2 REF: 101
NAT: AACSB Analytic | Environmental Influence TYP: F
- ____ is the most widespread approach to international involvement in China and India.
| a. | Importing |
| b. | Exporting |
| c. | Manufacturing |
| d. | Outsourcing |
| e. | Greenfield venture |
ANS: D PTS: 1 DIF: 1 REF: 101
NAT: AACSB Analytic | Environmental Influence TYP: F
- The management of business operations conducted in more than one country is called
| a. | global management. |
| b. | international management. |
| c. | outsourcing management. |
| d. | planning management. |
| e. | domestic management. |
ANS: B PTS: 1 DIF: 2 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F
- ____ aspects of management do not change when doing business internationally.
| a. | Planning |
| b. | Organizing |
| c. | Controlling |
| d. | Leading |
| e. | All of these |
ANS: E PTS: 1 DIF: 1 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F
- Language, values, religion, and education all describe which dimension in the international environment?
| a. | Economic |
| b. | Legal |
| c. | Political |
| d. | Sociocultural |
| e. | Technological |
ANS: D PTS: 1 DIF: 1 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F
- In international operations, the economic environment represents all of the following factors EXCEPT
| a. | infrastructure. |
| b. | resource and product markets. |
| c. | laws and regulations. |
| d. | inflation. |
| e. | exchange rates. |
ANS: C PTS: 1 DIF: 2 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F
- Resource development, infrastructure, and exchange rates all describe which dimension in the international environment?
| a. | Economic |
| b. | Legal |
| c. | Political |
| d. | Sociocultural |
| e. | Technological |
ANS: A PTS: 1 DIF: 1 REF: 102
NAT: AACSB Analytic | Environmental Influence TYP: F
- In international operations, the economic environment includes
| a. | shared knowledge, beliefs and values. |
| b. | political risks. |
| c. | social organizations. |
| d. | infrastructure. |
| e. | tariffs, quotas, and taxes. |
ANS: D PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F
- Which of the following is a sociocultural factor in the international environment?
| a. | Language |
| b. | Exchange rates |
| c. | Tariffs, taxes, and quotas |
| d. | Per capita income |
| e. | Infrastructure |
ANS: A PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F
- ____ is normally used to classify countries as developed or developing.
| a. | Exchange rates |
| b. | Interest rates |
| c. | Gross national product |
| d. | Per capita income |
| e. | Inflation rates |
ANS: D PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F
- ____ generally are located in Asia, Africa and South America.
| a. | MNCs |
| b. | EUs |
| c. | LDCs |
| d. | WTOs |
| e. | MFNs |
ANS: C PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F
- A country’s physical facilities that support economic activities make up its ____.
| a. | resource markets |
| b. | infrastructure |
| c. | physical markets |
| d. | product markets |
| e. | plants and equipment |
ANS: B PTS: 1 DIF: 1 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F
- If you built a computer company in Africa and then found that your product was having difficulty being distributed to customers because of the road system, your problem would be related to
| a. | an inadequate infrastructure. |
| b. | an economy incapable of supporting growth. |
| c. | a poor resource market. |
| d. | a poor product market. |
| e. | none of these. |
ANS: A PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F
- Your grocery store in India is having trouble getting the local farmers to supply you with the proper produce. This is a problem with India’s
| a. | product market. |
| b. | resource market. |
| c. | infrastructure. |
| d. | economy. |
| e. | power distance. |
ANS: B PTS: 1 DIF: 2 REF: 103
NAT: AACSB Analytic | Environmental Influence TYP: F
- Exchange rates are included in which of the following international environments?
| a. | The legal-political sector |
| b. | The economic environment |
| c. | The sociocultural environment |
| d. | The barter system environment |
| e. | The government sector |
ANS: B PTS: 1 DIF: 2 REF: 104
NAT: AACSB Analytic | Environmental Influence TYP: F
- Which of the following refers to the rate at which one country’s currency is exchanged for another country’s currency?
| a. | Interest rate |
| b. | Inflation rate |
| c. | Per capita income |
| d. | Exchange rate |
| e. | Economic rate |
ANS: D PTS: 1 DIF: 1 REF: 104
NAT: AACSB Analytic | Environmental Influence TYP: F
- Assume that until yesterday, one U.S. dollar could be exchanged for 85 Japanese yens. Today, a dollar gets you 102 yens. Which of the following statements is true?
| a. | U.S. goods will be more expensive in Japan. |
| b. | Japanese goods will be more expensive in the U.S. |
| c. | U.S. goods will be the same price in Japan. |
| d. | Japanese goods will be the same price in the U.S. |
| e. | None of these. |
ANS: A PTS: 1 DIF: 3 REF: 104
NAT: AACSB Analytic | Environmental Influence TYP: F
- The legal-political environment, in international operations, includes which of the following?
| a. | Shared knowledge, beliefs and values |
| b. | Political risks |
| c. | Social organizations |
| d. | Infrastructure |
| e. | None of these |
ANS: B PTS: 1 DIF: 2 REF: 104
NAT: AACSB Analytic | Environmental Influence TYP: F
- Political risk is defined as an organization’s risk of ____ due to politically based events or actions by host governments.
| a. | loss of assets |
| b. | managerial control |
| c. | earning power |
| d. | all of these |
| e. | managerial control and earning power only |
ANS: D PTS: 1 DIF: 2 REF: 104
NAT: AACSB Analytic | Environmental Influence TYP: F
- A company’s risk of loss of assets, earning power, or managerial control due to politically based events or action by host government is referred to as
| a. | MFN. |
| b. | political risk. |
| c. | tariffs. |
| d. | political instability. |
| e. | terrorism. |
ANS: B PTS: 1 DIF: 1 REF: 104
NAT: AACSB Analytic | Environmental Influence TYP: F
- Rooftop International, Inc. buys insurance against host government takeover when investing in foreign countries. This is an example of which sector of the international environment?
| a. | Legal-political |
| b. | Sociocultural |
| c. | Technological |
| d. | Economic |
| e. | Infrastructure |
ANS: A PTS: 1 DIF: 2 REF: 104
NAT: AACSB Analytic | Environmental Influence TYP: F
- Which of the following is NOT a legal-political factor in the international environment?
| a. | Laws and regulations |
| b. | Language |
| c. | Tariffs, quotas, taxes |
| d. | Political risk |
| e. | Government takeovers |
ANS: B PTS: 1 DIF: 2 REF: 104-105
NAT: AACSB Analytic | Environmental Influence TYP: F
- A foreign terrorist kidnaps your firm’s marketing VP while the VP is in the host country. This is a harsh example of
| a. | economic development. |
| b. | infrastructure. |
| c. | political risk. |
| d. | international law. |
| e. | social risk. |
ANS: C PTS: 1 DIF: 2 REF: 105
NAT: AACSB Analytic | Environmental Influence TYP: A
- A nation’s ____ includes the shared knowledge, beliefs and values, as well as the common modes of behavior and ways of thinking, among members of a society.
| a. | power distance |
| b. | culture |
| c. | masculinity |
| d. | individualism |
| e. | uncertainty avoidance |
ANS: B PTS: 1 DIF: 1 REF: 105
NAT: AACSB Analytic | Environmental Influence TYP: F
- Cultural factors in foreign countries are ____ the political and economic factors.
| a. | easier than |
| b. | similar to |
| c. | more perplexing than |
| d. | less important than |
| e. | none of these |
ANS: C PTS: 1 DIF: 2 REF: 105
NAT: AACSB Analytic | Environmental Influence TYP: F
- ____ refers to the degree to which people accept inequality in power among institutions, organizations, and people.
| a. | Power distance |
| b. | Uncertainty avoidance |
| c. | Individualism |
| d. | Collectivism |
| e. | Masculinity |
ANS: A PTS: 1 DIF: 1 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F
- Countries whose social values reflect low power distance
| a. | are highly democratic. |
| b. | accept inequality in power among institutions, organizations and people. |
| c. | expect equality in power. |
| d. | avoid uncertainty. |
| e. | none of these. |
ANS: C PTS: 1 DIF: 2 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F
- A loosely knit social framework in which individuals are expected to take care of themselves is called
| a. | culture. |
| b. | individualism. |
| c. | ethnocentrism. |
| d. | masculinity. |
| e. | power distance. |
ANS: B PTS: 1 DIF: 2 REF: 106
NAT: AACSB Analytic | Environmental Influence TYP: F
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