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TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

1) In the symbolic view of management, managers are seen as directly responsible for an

organization's success or failure.

1) _______

2) The dominant view in management theory suggests that managers are omnipotent. 2) _______

3) The view of managers as omnipotent is consistent with the stereotypical picture of the

take-charge business executive who can overcome any obstacle in carrying out the organization's

objectives.

3) _______

4) The symbolic view of management helps to explain the high turnover among college and

professional sports coaches, who are often fired and replaced when their teams perform poorly.

4) _______

5) In the omnipotent view of management, much of an organization's success or failure is due to

forces outside management's control.

5) _______

6) If an organization subscribes to the symbolic view of management, it is unreasonable to expect

managers to have a significant effect on the organization's performance.

6) _______

7) A manager's role in the omnipotent view of management is to create meaning out of

randomness, confusion, and ambiguity.

7) _______

8) The part of the environment that is directly relevant to achievement of an organization's goals is

the specific environment.

8) _______

9) The term suppliers includes providers of financial and labour inputs. 9) _______

10) To a national television network like the CBC, your home DVD player could be considered a

competitor.

10) ______

11) Economic conditions are part of the organization's specific environment. 11) ______

12) Demographic conditions are part of the organization's general environment. 12) ______

13) The European Union (EU) and the North American Free Trade Agreement (NAFTA) have both

created regional trading alliances.

13) ______

14) The General Agreement on Tariffs and Trade (GATT) was signed in 1992 to create the EU. 14) ______

15) Through the creation of the EU, each member country now has increased border controls,

nationalist policies, and protected industries.

15) ______

16) The three original partners of NAFTA are Canada, the United States, and Mexico. 16) ______

17) NAFTA has strengthened the economic power of all three member countries. 17) ______

18) Mercosur is a trading alliance between 10 southeast Asian nations. 18) ______

19) The World Trade Organization was formed in 1995 and evolved from the Maastricht Treaty, an

agreement in effect since the end of World War II.

19) ______

Full file at https://fratstock.eu20) The legal-political environment is an important factor of managing in a foreign environment. 20) ______

21) Only when a country's legal-political environment is unstable or revolutionary is it of concern to

managers.

21) ______

22) Research indicates that organizational culture has a stronger impact on employees than national

culture.

22) ______

23) A command economy is one in which resources are primarily owned and controlled by the

private sector.

23) ______

24) Power distance refers to the degree to which a society encourages people to be tough,

confrontational, assertive, and competitive.

24) ______

25) People in a society that is high in uncertainty avoidance don't feel threatened by uncertainty and

experience low levels of anxiety, stress, and aggressiveness.

25) ______

26) Jim was born and raised in a country with a long-term orientation. In his culture, leisure time is

highly valued because it is a vital part of the long-term health plan for the individual.

26) ______

27) Multinational corporations became commonplace in the mid-1960s. 27) ______

28) By decentralizing management authority to the local country, the transnational corporation

reflects an ethnocentric attitude.

28) ______

29) "Born globals" are companies that choose to go global from inception; they commit resources up

front (material, people, financing) to doing business in more than one country.

29) ______

30) Multidomestic corporations use one strategy for all global operations based on the different

domestic influences that are present in the firm's original home market.

30) ______

31) Transnational corporations run their businesses from their home country. 31) ______

32) Global sourcing called global outsourcing refers to the practice of purchasing materials or labour

from around the world wherever it is cheapest.

32) ______

33) Importing is an approach to going global that involves making products at home and selling

them overseas.

33) ______

34) Setting up a foreign subsidiary involves a higher degree of risk and commitment than

franchising.

34) ______

35) Shareholders are defined as any constituency in the organization's external environment that

may be affected by the organization's decisions and actions.

35) ______

36) The Environmental Uncertainty Matrix ranges in complexity from "stable to dynamic" on the

horizontal axis and from "simple to complex" (degree of change) on the vertical axis.

36) ______

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

37) What are the two views of managerial impact on the success or failure of the organization? 37) ______

A) symbolic and interactive

Full file at https://fratstock.euB) omnipotent and symbolic

C) omnipotent and reflective

D) dynamic and reflective

E) reflective and interactive

38) The omnipotent view of management means __________. 38) ______

A) managers have little or no responsibility for an organization's success or failure

B) the top manager is the only person in charge

C) managers are directly responsible for an organization's success or failure

D) managers are directly responsible for all internal factors within their control

E) outside forces have the most influence on organizational outcomes

39) The __________ view of management is consistent with the stereotypical picture of the

take-charge business executive who can overcome any obstacle in carrying out the organization's

objectives.

39) ______

A) interactive

B) symbolic

C) omnipotent

D) reflective

E) dynamic

40) The symbolic view of management means __________. 40) ______

A) managers are only responsible for those factors that influence organizational performance

B) successful managers become role models for employees

C) employees are directly responsible for an organization's success or failure

D) managers have only a limited effect on organizational outcomes

E) managers are directly responsible for an organization's success or failure

41) Internal constraints that restrict a manager's decision options arise from __________. 41) ______

A) the rules and policies implemented by top managers

B) the organization's culture

C) the activities of industry competitors

D) the organization's environment

E) the laws and regulations governing workplace practices

42) According to the symbolic view, managers have a(n) __________ effect on substantive

organizational outcomes.

42) ______

A) unlimited

B) negative

C) substantial

D) moderate

E) limited

43) Managers operate within the internal and external constraints imposed by __________. 43) ______

A) federal and provincial governments

B) the organization's board of directors

C) the organization's culture and environment

D) industry regulation

E) the employees of the organization

44) Despite the existence of both internal and external constraints, managers can still improve

organizational performance by:

44) ______

Full file at https://fratstock.euA) influencing the organization's culture and environment.

B) electing new government officials at the federal and provincial levels.

C) introducing new rules and procedures.

D) redesigning the organization's structure.

E) delegating more responsibility to employees.

45) The external environment consists of the global environment, __________. 45) ______

A) primary environment, and the secondary environment

B) primary environment, and the general environment

C) specific environment, and the general environment

D) organizational culture, and the general environment

E) national culture, and the specific environment

46) An organization's specific environment __________. 46) ______

A) is the same regardless of the organization's age

B) includes economic and global conditions that may affect the organization

C) is unique and changes with conditions

D) is determined by the top level of management

E) includes demographic and technological conditions that may affect the organization

47) The specific environment of organizations consists of external forces that have a direct impact on

managers' decisions and actions. The main forces are customers, suppliers, competitors, and

__________.

47) ______

A) pressure groups

B) employees

C) shareholders

D) lawyers

E) legislators

48) Which of the following is an example of a force in the general environment? 48) ______

A) customers

B) competitors

C) suppliers

D) demographics

E) pressure groups

49) The primary goal of managers when dealing with suppliers is to ensure a steady flow of

__________.

49) ______

A) inputs at the lowest price available

B) cheap labour to produce products at the lowest possible cost

C) industry entrants to help maximize the competition among suppliers

D) customers at the distribution outlets

E) cash from investors into the organization

50) For an amusement theme park like Paramount Canada's Wonderland in Toronto, an insurance

provider would be an example of which factor in its specific environment?

50) ______

A) competitor

B) pressure group

C) supplier

D) customer

E) government agency

Full file at https://fratstock.eu51) For an organization such as a hospital that needs nurses, the labour union and the local labour

market are examples of which factors in its specific environment?

51) ______

A) government agency and competitor

B) pressure group and supplier

C) pressure group and competitor

D) customer and special-interest group

E) both are examples of suppliers

52) Which of the following is included in an organization's specific environment? 52) ______

A) competitors

B) inflation

C) government legislation

D) interest rates

E) demographics

53) According to the textbook, the __________ environment includes those external forces that have

a direct and immediate impact on managers' decisions and actions and are directly relevant to

the achievement of the organization's goals.

53) ______

A) general B) primary C) forward D) specific E) secondary

54) United Parcel Service represents which factor to Canada Post in its specific environment? 54) ______

A) supplier

B) pressure group

C) government agency

D) customer

E) competitor

55) Economic conditions include all of the following factors except __________. 55) ______

A) stock market fluctuations

B) federal government legislation

C) inflation

D) interest rates

E) changes in disposable income

56) Political/legal conditions in Canada include all of the following factors except __________. 56) ______

A) interest rates

B) the competition bureau

C) human rights

D) egg marketing boards

E) employment equity

57) To a cable television provider like Shaw Cablesystems, a satellite TV company like Bell would be

considered a __________.

57) ______

A) customer

B) regulator

C) pressure group

D) competitor

E) supplier

58) Neighbourhood activists who protest against the building of "big box" stores would be

considered which factor in the specific environment for Wal-Mart or Home Depot?

58) ______

A) pressure group

Full file at https://fratstock.euB) customer

C) government agency

D) competitor

E) supplier

59) The global environment of an organization includes which of the following? 59) ______

A) pressure groups

B) stakeholders

C) issues directly relevant to achieving organizational goals

D) suppliers

E) demographic conditions

60) Which of the following is usually part of an organization's general environment? 60) ______

A) political conditions

B) weather conditions

C) competitors

D) pressure groups

E) suppliers

61) Interest rates, inflation rates, and stock market indexes are all examples of what factor in an

organization's general environment?

61) ______

A) sociocultural

B) legal

C) political

D) economic

E) technological

62) A downturn in contributions from the public to the United Way charity is an example of the

impact from what factor in its general environment?

62) ______

A) economic

B) global

C) political

D) technological

E) sociocultural

63) The Canadian Human Rights Act is an example of a __________. 63) ______

A) political/sociological condition

B) sociocultural condition

C) demographic condition

D) political/legal condition

E) sociolegal condition

64) Which Act makes it illegal for employers to discriminate on the basis of race, national or ethnic

origin, colour, religion, age, sex, marital status, mental or physical disability, or sexual

orientation?

64) ______

A) Canadian Human Rights Act

B) Canadian Charter of Rights and Freedoms

C) Canadian Civil Liberties Act

D) Canada's Employment Equity Act

E) Canada's Competition Act

65) Sociocultural conditions consist of the __________. 65) ______

Full file at https://fratstock.euA) demographic profiles of an organization's suppliers

B) laws that govern human rights and the competitive activities of organizations in a society

C) changing expectations of the society in which organizations operate

D) socialization processes that help to maintain organizational cultures

E) level of unemployment and real economic incomes of workers

66) When researchers discovered a link between trans fatty acids and heart disease, many

consumers became concerned. As a result, Ontario-based Voortman's Cookies decided to

eliminate all trans fats from its products. Voortman's was responding to changing __________

conditions.

66) ______

A) economic

B) technological

C) sociocultural

D) competitive

E) political/legal

67) As employees have begun to seek more balance in their lives, organizations have had to adjust

by offering family leave policies, more flexible work hours, and even on-site child care facilities.

This is an example of how changing __________ conditions can affect an organization.

67) ______

A) demographic

B) political/legal

C) technological

D) economic

E) sociocultural

68) As more consumers have become aware of the use of rendered feed and the poor treatment of

chickens in many large-scale poultry farms, some farm managers have switched to all-natural

feed and "free range" breeding methods. This is an example of how changing __________

conditions can affect an organization.

68) ______

A) political/legal

B) economic

C) technological

D) demographic

E) sociocultural

69) Human resources managers are increasingly using the Internet to search for qualified candidates

through on-line résumé systems and job-posting websites. This is an example of how changing

__________ conditions can affect an organization.

69) ______

A) technological

B) demographic

C) political/legal

D) economic

E) sociocultural

70) Which of the following demographic groups includes individuals who were born between the

years 1947-1966?

70) ______

A) the baby boomers

B) the Depression group

C) Generation Y

D) the World War II group

E) Generation X

Full file at https://fratstock.eu71) According to the textbook, the members of which one of the following demographic groups are

thinking, learning, creating, shopping, and playing in fundamentally different ways that are

likely to greatly impact organizations and managers?

71) ______

A) Generation Y

B) the Depression group

C) Generation X

D) the World War II group

E) the baby boomers

72) For most organizations, the most rapidly changing factor has been __________ conditions. 72) ______

A) technological

B) economic

C) political/legal

D) global

E) sociocultural

73) The enhanced speed and quality of managerial decision making due to improvements in office

automation is an example of the impact of which general environmental factor?

73) ______

A) political

B) demographic

C) sociocultural

D) global

E) technological

74) Through the creation of the EU, member countries now have __________. 74) ______

A) government subsidies

B) protected industries

C) a single market

D) border controls

E) nationalistic policies

75) Canada exports __________ of its total exports to the United States. 75) ______

A) nearly 90 percent

B) nearly 80 percent

C) one-half

D) one-third

E) 70 percent

76) Which of the following is a trading alliance of Southeast Asian nations? 76) ______

A) Southern Cone Common Market

B) FTAA

C) Mercosur

D) ASEAN

E) NAFTA

77) Which of the following is a multilateral trading system formed in 1995? 77) ______

A) GATT B) WTO C) Mercosur D) ASEAN E) NAFTA

78) The WTO is a global organization that evolved from __________. 78) ______

A) GATT

B) NAFTA

C) EEC

Full file at https://fratstock.euD) ASEAN

E) the Maastricht Treaty

79) Canada's economy is best described as __________. 79) ______

A) a command economy with no private sector control

B) a market economy with no government control

C) a command economy with some private sector control

D) a command economy with some government control

E) a market economy with some government control

80) Three economic issues that a global manager might need to understand include __________. 80) ______

A) tax policies, political stability, and cultural differences

B) currency exchange rates, inflation rates, and tax policies

C) tax policies, employment laws, and cultural differences

D) inflation rates, tax policies, and political stability

E) employment laws, currency exchange rates, and political stability

81) From a cultural standpoint, research indicates that __________ has a greater effect on employees

than __________.

81) ______

A) employment law; religion

B) national culture; employment law

C) national culture; organizational culture

D) organizational culture; national culture

E) organizational culture; religion

82) The cultural dimension of __________ measures the degree to which the members of a society

expect power to be unequally shared.

82) ______

A) humane orientation

B) power distance

C) in-group collectivism

D) uncertainty avoidance

E) assertiveness

83) The cultural dimension of __________ measures the degree to which a society relies on social

norms and procedures to alleviate the unpredictability of future events.

83) ______

A) assertiveness

B) power distance

C) performance orientation

D) uncertainty avoidance

E) future orientation

84) According to Hofstede, managers and employees vary on five dimensions of national culture.

Which of the following represents one of the five dimensions that Hofstede identified?

84) ______

A) Power avoidance B) Freedom vs. Restraint

C) Open-Minded vs. Close-minded D) Achievement vs. Nurturing

85) When an organization drops its structure based on countries and reorganizes according to

industries, it is pursuing a global business approach known as __________.

85) ______

A) transactional organization

B) polycentric organization

C) multinational organization

D) borderless organization

Full file at https://fratstock.euE) multicultural organization

86) XYZ is an international corporation that has recently changed its philosophy. It has

decentralized management and decision making to the local countries in which it operates. XYZ

is pursuing a __________ approach.

86) ______

A) global

B) multidomestic

C) natural global

D) intra-governmental

E) multicultural

87) John and Sylvie recently opened a high-tech firm. From its inception the co-founders committed

significant resources to the pursuit of business in various countries. John and Sylvie have created

a company that can best be classified as a:

87) ______

A) strategic international alliance

B) born global

C) greenfield franchise

D) venture capitalist

E) joint alliance

88) Which of the following definitions is most accurate for a multinational corporation? 88) ______

A) a company that maintains significant operations in at least two countries but decentralizes

management to each country

B) a company that maintains significant operations in at least two countries but is managed

from a base in the home country

C) a company that maintains significant operations in at least two countries

D) a company that maintains significant operations in at least two countries and has multiple

home bases

E) a company that maintains significant operations in at least two countries but organizes by

industry to reduce geographical barriers

89) Which of the following definitions best describes a borderless corporation? 89) ______

A) a company that maintains significant operations in at least two countries but organizes by

industry to reduce geographical barriers

B) a company that maintains significant operations in at least two countries

C) a company that maintains significant operations in at least two countries but decentralizes

management to each country

D) a company that maintains significant operations in at least two countries but is managed

from a base in the home country

E) a company that maintains significant operations in at least two countries and has multiple

home bases

90) IBM is the world's largest information technology company with over 300,000 employees in 170

countries. It once had a country-based structure, but reorganized into industry groups to

compete more effectively in the global marketplace. IBM is best described as a __________

organization.

90) ______

A) multicultural

B) borderless

C) philanthropic

D) multinational

E) polycentric

Full file at https://fratstock.eu91) Multinational corporations (MNCs) became commonplace in the __________. 91) ______

A) 1960s B) 1940s C) 1970s D) 1980s E) 1950s

92) Which of the following strategies for going global involves the lowest level of risk and

investment?

92) ______

A) foreign subsidiary

B) strategic alliances

C) foreign contracting

D) licensing and franchising

E) exporting

93) Which of the following strategies for going global involves the highest level of risk and

investment?

93) ______

A) strategic alliances

B) exporting

C) foreign contracting

D) licensing and franchising

E) foreign subsidiary

94) Which of the following strategies for going global involves a higher level of risk and investment

than strategic alliances?

94) ______

A) licensing

B) foreign contracting

C) exporting

D) franchising

E) foreign subsidiary

95) Which approach to going global involves making products at home and selling them overseas? 95) ______

A) foreign contracting

B) franchising

C) licensing

D) exporting

E) importing

96) Many organizations, especially small businesses, start doing business globally by __________. 96) ______

A) exporting and importing

B) licensing and franchising

C) establishing foreign subsidiaries

D) hiring foreign brokers to represent their product line

E) forming joint ventures

97) Which approach to going global did McDonald's Canada use when it opened restaurants in

Russia?

97) ______

A) franchising

B) exporting

C) licensing

D) strategic alliances

E) foreign contracting

98) A joint venture is a specific type of __________. 98) ______

A) licensing agreement

B) foreign contracting arrangement

Full file at https://fratstock.euC) foreign subsidiary

D) strategic alliance

E) franchise

99) A domestic firm and a foreign firm sharing the cost of developing new products or building

production facilities would be called a __________.

99) ______

A) franchising agreement

B) transnational venture

C) strategic alliance

D) foreign subsidiary

E) brokering agreement

100) McDonald's Canada, GM Canada, and IBM Canada are all examples of U.S. __________

operating in Canada.

100) _____

A) transnational ventures

B) franchises

C) subsidiaries

D) strategic alliances

E) joint ventures

101) Compared to many other countries, Canada's legal-political environment is considered

__________.

101) _____

A) fixed B) stable C) radical D) dynamic E) unstable

102) From a legal-political standpoint, some large corporations have postponed doing business with

China and other Asian countries due to __________.

102) _____

A) stable government policies

B) fluctuating currency exchange rates

C) unstable inflation rates

D) political interference

E) diverse tax policies

103) Which of the following are the two dimensions of environmental uncertainty? 103) _____

A) degree of complexity and degree of impact

B) degree of impact and degree of uncertainty

C) degree of change and degree of flexibility

D) degree of risk and degree of complexity

E) degree of change and degree of complexity

104) Since the emergence of digital music formats, the recorded music industry has been operating in

an environment that is best described as __________.

104) _____

A) flexible B) stable C) dynamic D) divergent E) static

105) If the components in an organization's environment change frequently, it is called a __________

environment.

105) _____

A) difficult

B) dynamic

C) divergent

D) dysfunctional

E) transitory

106) Managers try to minimize __________ because it is a threat to an organization's effectiveness. 106) _____

Full file at https://fratstock.euA) uncertainty

B) technology

C) efficiency

D) product development

E) inflation

107) Given a choice, most managers would prefer to operate in environments that are __________. 107) _____

A) dynamic and flexible

B) simple and stable

C) simple and dynamic

D) complex and stable

E) complex and dynamic

108) __________ are any constituencies in the organization's external environment that are affected by

the organization's decisions and actions.

108) _____

A) Stakeholders

B) Pressure groups

C) Consumers

D) Stockholders

E) Suppliers

109) The degree of __________ refers to the number of components in an organization's environment

and the extent of the knowledge that the organization has about those components.

109) _____

A) flexibility

B) risk

C) complexity

D) change

E) stability

Refer to the Scenario below to answer the questions that follow.

The External Environment (Scenario)

DigiTech Corporation is a manufacturer of handheld language translation devices. There are many forces in the external

environment that influence DigiTech, and its managers are monitoring them closely. One factor is the upcoming federal

election. If elected, the leading political candidate has promised to cut corporate taxes to help stimulate the economy.

Another factor is the emergence of new competitors with products similar to DigiTech's best-selling model: the

Speak-Easy. Advances in the processing speed of computer chips have shortened product development cycles and made

it easier for new companies to enter the market. Unfortunately, the recent increase in competition has led to supplier

shortages of key components like microphones and micro-speakers, and left DigiTech scrambling to find new sources!

110) The external environment of DigiTech consists of the specific environment, __________. 110) _____

A) specific environment, and organizational culture

B) primary environment, and global environment

C) primary environment, and secondary environment

D) general environment, and global environment

E) general environment, and secondary environment

111) The upcoming federal election and the potential change of government involves which factor in

DigiTech's external environment?

111) _____

A) political/legal conditions

B) global conditions

Full file at https://fratstock.euC) sociocultural conditions

D) economic conditions

E) demographic conditions

112) The politician's promise to lower corporate taxes could affect which factor in DigiTech's external

environment?

112) _____

A) economic conditions

B) political/legal conditions

C) global conditions

D) technological conditions

E) sociocultural conditions

113) Rapid changes in __________ conditions have resulted in shorter product development cycles for

DigiTech.

113) _____

A) sociocultural

B) technological

C) political/legal

D) global

E) economic

114) In DigiTech's specific environment, the number of __________ is increasing and there are

shortages among its key __________.

114) _____

A) investors; agents

B) customers; competitors

C) pressure groups; customers

D) competitors; suppliers

E) suppliers; investors


First Business Trip to Asia (Scenario)

Jeff Elliott is on a flight across the Pacific and is excited about his first business trip to Asia. Born and raised in Alberta,

Jeff is a manager for a rapidly growing Calgary-based company. His current mission is to scout out potential locations in

Asia and develop an international expansion strategy for his company. There are many options, including maintaining

the businesses head office in Canada and sending over company representatives when necessary, or developing a

separate company in Asia and hiring locals to manage the business. Jeff's trip will take him to Japan, Korea, Hong Kong,

Taiwan and Thailand. He is looking forward to learning more about the business practices and customs of each country,

and is not too worried about the fact that he only speaks English. Jeff has heard that English is considered the main

international business language and he anticipates that most Asians will be able to speak it.

115) If Jeff's company decided to open another company in Taiwan but manage it from its

headquarters in Canada, it would be considered a __________.

115) _____

A) global business alliance

B) transnational corporation

C) regional trade alliance


E) multinational corporation

116) If Jeff's company decides to open completely new operations in Thailand, Japan and Korea, and

decides to decentralize management and decision making to the local countries, it would be

following a __________ approach.

116) _____

Full file at https://fratstock.euA) global

B) multidomestic

C) ethnocentric


E) multinational

117) If Jeff's company eliminated country-designated locations and reorganized based on industry

groups, it would best be described as a __________.

117) _____

A) global business alliance

B) borderless organization

C) polycentric organization

D) multidomestic organization

E) multinational corporation


Environmental Uncertainty (Scenario)

It is safe to say that managers do not have complete control over organizational outcomes; the environment has a

significant impact. It is important for managers to learn both what the components of the environment are, and how the

environment will affect their organizations.

118) An Internet-based company that is facing many new competitors and frequent technological

breakthroughs is operating in what kind of environment?

118) _____

A) static B) flexible C) stable D) divergent E) dynamic

119) A grocery store that has few components in its environment and minimal need for knowledge

about its suppliers or customers is operating under conditions of low __________.

119) _____

A) flexibility

B) stability

C) divergency

D) complexity

E) simplicity

120) An online brokerage company like E*TRADE that is dealing with many environmental

components and requires a high level of knowledge about Internet operations is operating in a

highly __________ environment.

120) _____

A) stable B) divergent C) complex D) static E) flexible

121) To help managers understand how the environment affects their organizations, the

environmental uncertainty matrix sorts industries into four cells based on two dimensions:

degree of __________ and degree of __________.

121) _____

A) change; complexity

B) complexity; risk

C) impact; uncertainty

D) complexity; impact

E) change; flexibility

122) Given a choice, most managers would prefer to operate in cell 1 of the environmental

uncertainty matrix, where the environment is __________.

122) _____

A) dynamic and flexible

B) simple and stable

Full file at https://fratstock.euC) complex and dynamic

D) complex and stable

E) simple and dynamic


Managing Stakeholder Relationships (Scenario)

Daniel Guzman has been hired by Flair Fashion Corporation, a manufacturer of precious metal jewelry. Flair Fashion has

been having problems with some of its major stakeholders. These include poor quality materials from its suppliers and

complaints from its customers. Daniel has been hired to help resolve the current issues and to develop a plan for

managing other stakeholder problems in the future.

123) Daniel begins by defining stakeholders as __________. 123) _____

A) any constituencies in the external environment that are affected by the organization's

decisions and actions

B) the constituencies in the external environment that compete with the organization

C) the constituencies in the external environment that regulate the industry

D) the constituencies in the external environment that own shares in the organization

E) the constituencies in the external environment that are employed by the organization

124) Daniel is made aware of a new threat by a local group that opposes the mining of a raw material

used in the manufacturing process. The company is now likely facing a __________.

124) _____

A) supplier

B) public pressure group

C) industry association

D) shareholder

E) competitor


International Entrepreneurs (Scenario)

Jennifer and James have formed an entrepreneurial venture to develop software for banks and other financial institutions.

Their company is growing, but in looking for opportunities in the future, they decide to explore international operations.

125) By establishing their company's operations in Canada, Jennifer and James hoped that an existing

regional trade agreement would help them to avoid tariffs in __________.

125) _____

A) Southeast Asia

B) Japan and Germany

C) Europe

D) South America

E) Mexico and the United States

126) As their international operations grew, Jennifer and James decided to decentralize management

and hire foreign nationals to run the business in their local countries. Their firm has developed

into a __________.

126) _____

A) global trade alliance

B) global organization

C) multinational corporation

D) joint venture

E) multidomestic


127) A new and exciting opportunity has appeared that enables Jennifer and James to form a joint

venture with a bank in Japan. This partnership will involve less risk and commitment than

__________.

127) _____

A) setting up a foreign subsidiary

B) foreign contracting

C) franchising

D) licensing

E) exporting

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128) _____

A) joint venture

B) export alliance

C) foreign subsidiary

D) strategic alliance

E) franchise


A Speech on Trade Alliances (Scenario)

As manager of the international department for your company, you have been asked by the local Chamber of Commerce

to deliver a speech on global trade. The presentation should include an overview of the world's major trade alliances and

mechanisms that promote global trade. The Chamber president has also asked you to comment on a recent quote by a

local politician who stated: "NAFTA has been a bad deal for Canada and it continues to weaken our economy." As you

Full file at https://fratstock.eureview your notes, you wonder how you will fit all the information into the allotted half-hour presentation time!

129) To help explain the main advantages of regional trade alliances, you will point out that EU

member countries now have __________.

129) _____

A) nationalistic policies

B) protected industries

C) a single market

D) government subsidies

E) border controls

130) You also plan to discuss other regional trading alliances like the one in Southeast Asia called

__________.

130) _____

A) FTASAN

B) ASEAN

C) Mercosur

D) the Southern Cone Common Market

E) SEAFTA

131) Before you conclude your speech, you intend to explain how the WTO operates as __________. 131) _____

A) the only global organization dedicated to protecting the rights of workers in multinational

corporations

B) a unilateral trading system

C) a mechanism to discourage global trade and protect the environment

D) the only global organization that monitors and promotes competition between nations

E) a global organization that deals with the rules of trade among nations


The European Expansion (Scenario)

As a manager at a growing Canadian company, Samantha has been asked to develop a strategy to expand the company's

operations into the European market. Although the company president has provided some basic guidelines about

acceptable levels of risk and investment, there are still many factors in the legal-political, economic, and cultural

environments that Samantha must take into consideration in her proposal.

132) Samantha begins to explore expansion opportunities in England and France because of language

similarities with the Canadian market, and also because her Canadian managers are used to

legal and political systems that are __________.

132) _____

A) stable

B) fixed

C) command-based

D) dynamic

E) flexible

133) Samantha is considering whether her company should open a subsidiary in Germany or Italy.

She is wondering which country's culture would be better suited to her company, since research

indicates that __________.

133) _____

A) national culture has a greater effect on employees than organizational culture

B) national culture and organizational culture have roughly the same effect on employees

C) organizational culture has a greater effect on employees than employment laws

D) national culture has a greater effect on employees than economic conditions

E) organizational culture has a greater effect on employees than national culture


134) Samantha will recommend forming a strategic alliance with a French-based company that

promises to market her company's products in several EU countries in exchange for access to her

company's distribution network in Canada and the United States. This strategy will require less

investment than __________.

134) _____

A) establishing a joint venture

B) establishing a subsidiary

C) licensing

D) franchising

E) exporting

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

135) In a short essay, differentiate between the symbolic view and the omnipotent view of management. Include

specific examples of each view to support your answer.

136) Identify the factors in the specific, general and global environments that can influence an organization.

137) In a short essay, name and briefly describe three major regional trading alliances.

138) In a short essay, explain the difference between a multinational corporation (MNC), mutidomestic, global

and transnational-borderless organizations. Provide examples for each type of organization.

139) Explain what is meant by the term "Born Global?"


1) FALSE

2) TRUE

3) TRUE

4) FALSE

5) FALSE

6) TRUE

7) FALSE

8) TRUE

9) TRUE

10) TRUE

11) FALSE

12) TRUE

13) TRUE

14) FALSE

15) FALSE

16) TRUE

17) TRUE

18) FALSE

19) FALSE

20) TRUE

21) FALSE

22) FALSE

23) FALSE

24) FALSE

25) FALSE

26) FALSE

27) TRUE

28) FALSE

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30) FALSE

31) FALSE

32) TRUE

33) FALSE

34) TRUE

35) FALSE

36) TRUE

37) B

38) C

39) C

40) D

41) B

42) E

43) C

44) A

45) C

46) C

47) A

48) D

49) A

50) C

51) E

Full file at https://fratstock.eu52) A

53) D

54) E

55) B

56) A

57) D

58) A

59) E

60) A

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67) E

68) E

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70) A

71) A

72) A

73) E

74) C

75) B

76) D

77) B

78) A

79) E

80) B

81) C

82) B

83) D

84) D

85) D

86) B

87) B

88) B

89) A

90) B

91) A

92) E

93) E

94) E

95) D

96) A

97) A

98) D

99) C

100) C

101) B

102) D

103) E

Full file at https://fratstock.eu104) C

105) B

106) A

107) B

108) A

109) C

110) D

111) A

112) A

113) B

114) D

115) E

116) B

117) B

118) E

119) D

120) C

121) A

122) B

123) A

124) B

125) E

126) E

127) A

128) E

129) C

130) B

131) E

132) A

133) A

134) B

135) a. The view of managers as omnipotent is consistent with the stereotypical picture of the take-charge business

executive who can overcome any obstacle in carrying out the organization's objectives. This omnipotent view isn't

limited to business organizations. It can also be used to help explain the high turnover among college and

professional sports coaches, who can be considered the "managers" of their teams. Coaches who lose more games

than they win are seen as ineffective. They are fired and replaced by new coaches who, it is hoped, will correct the

inadequate performance. In the omnipotent view, when organizations perform poorly, someone has to be held

accountable regardless of the reasons why, and in our society, that "someone" is the manager. Of course, when

things go well, someone needs to be praised. So the manager also gets the credit even if they had little to do with

achieving positive outcomes.

b. The symbolic view says that a manager's ability to affect outcomes is influenced and constrained by

external factors. In this view, it is unreasonable to expect managers to significantly affect an organization's

performance. Instead, an organization's results are influenced by factors outside the control of management. These

factors include the economy, market changes, governmental policies, competitors' actions, conditions in the

particular industry, control over proprietary technology, and decisions made by the previous manager.

136) The specific environment includes customers, suppliers, competitors, and public pressure groups. The general

environment includes the broad economic, political/legal, sociocultural, demographic and technological conditions

that may affect an organization. Changes in the specific environment usually have a greater impact on the

organization than changes in the general environment.

The global market presents many opportunities and challenges for the modern manager. The issues addressed in

the general environment (economic, demographic, technological, sociocultural and legal-political) need to be

examined with a global perspective in mind as well. With the entire world as a market and national borders

Full file at https://fratstock.eubeco ming increasingly irrelevant, the potential for intelligent organizations to grow expands dramatically.

137) a. The European Union the signing of the Maastricht Treaty created the European Union. This treaty united

12 countries (27 by 2007) Belgium, Denmark, France, Greece, Ireland, Italy, Luxembourg, the Netherlands,

Portugal, Spain, the United Kingdom, and Germany originally as a unified economic and trade entity. The

growing trading block now encompasses a population base of well over 450 million people. As a single market, the

EU has eliminated barriers to travel, employment, investment and trade between member nations, and introduced a

common currency, the euro, which most member countries have chosen to adopt.

b. North American Free Trade Agreement (NAFTA) when the Mexican, Canadian, and U.S. governments

reached agreements on key issues covered by NAFTA in August, 1992, a vast economic bloc was created. Between

1994, when NAFTA went into effect, and 2003, Canada remained the United States' number-one trading partner. In

2003, Canadian exports to the U.S. were $331 billion, accounting for 83 percent of our total exports, roughly

equivalent to one-third of our GDP. Many economists argue that eliminating the barriers to free trade has resulted

in a strengthening of the economic power of all three countries.

c. Association of Southeast Asian Nations (ASEAN) the ASEAN is a trading alliance of 10 Southeast Asian

nations. During the years ahead, Asia, and particularly the Southeast Asian region, promises to be one of the

fastest-growing economic regions of the world. It will be an increasingly important regional economic and political

alliance whose impact eventually could rival that of both NAFTA and the EU.

138) According to the text here are the definitions:

a. Multinational corporation: a broad term usually used to refer to any and all types of international

companies that maintain operations in multiple countries. A company that maintains significant operations in

multiple countries but manages them from a base in the home country.

b. Multidomestic Corporations: an MNC that maintains significant operations in more than one country but

decentralizes management to the local country. This type of organization does not attempt to manage foreign

operations from its home country. Instead, local employees typically are hired to manage the business, and

marketing strategies are tailored to that country's unique characteristics. This type of global organization reflects

the polycentric attitude.

c. Global Companies: centralize management and other decisions in the home country. These companies treat the

world market as an integrated whole and focus on the need for global efficiency. Although these companies may

have considerable global holdings, management decisions with company-wide implications are made from

headquarters in the home country. This approach to globalization reflects the ethnocentric attitude.

d. Transnational or Borderless Organizations : many companies are going global by eliminating structural divisions

that impose artificial geographical barriers. This type of global organization is called a transnational or borderless

organization. Borderless management is an attempt by organizations to increase efficiency and effectiveness in a

competitive global marketplace.

139) Born Globals:

The infrastructure that has been built in the past few decades has led to the creation of a new mind set represented

by the "born global." The classification of different types of international organizations tends to describe large

international businesses. However, there is an increasing number of businesses called born globals that choose to go

global from inception. These companies (also known as international new ventures or INVs) commit resources up

front (material, people, financing) to doing business in more than one country and are likely to continue to play an

increasingly important role in international business. This new breed of company is reflection of the new

opportunities available for business.

full file at ://fratstock.eu/sample/test-bank-fundamentals... · full file at 20) the legal...

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