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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)


Industry conditions are an example of an organization's general environment.


11)


______

12)


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


12)


______

13)


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


13)


______

14)


The European Union (EU) and the North American Free Trade Agreement (NAFTA) have both created regional trading alliances.


14)


______

15)


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


15)


______

16)


Through the creation of the EU, each member country now has increased border controls, nationalist policies, and protected industries.


16)


______

17)


The primary motivation for the creation of the EU was to allow Europeans to reassert their position against the industrial strength of the United States and Japan.


17)


______

18)


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


18)


______

19)


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


19)


______

20)


Mercosur is a trading alliance between 10 southeast Asian nations.


20)


______

21)


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.


21)


______

22)


The legal-political environment is an important factor of managing in a foreign environment.


22)


______

23)


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


23)


______

24)


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


24)


______

25)


A command economy is one in which resources are primarily owned and controlled by the private sector.


25)


______

26)


Power distance refers to the degree to which a society encourages people to be tough, confrontational, assertive, and competitive.


26)


______

27)


Multinational corporations maintain significant operations in multiple countries but are managed from a base in the home country.


27)


______

28)


Multinational corporations became commonplace in the mid-1960s.


28)


______

29)


By decentralizing management authority to the local country, the transnational corporation reflects an ethnocentric attitude.


29)


______

30)


Transnational corporations run their businesses from their home country.


30)


______

31)


The borderless organization approaches global business with a geocentric attitude.


31)


______

32)


Importing is an approach to going global that involves making products at home and selling them overseas.


32)


______

33)


Setting up a foreign subsidiary involves a higher degree of risk and commitment than franchising.


33)


______

34)


Stockholders are defined as any constituencies in the organization's external environment that may be affected by the organization's decisions and actions.


34)


______

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

35)


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


35)


______ A)


dynamic and reflective B)


symbolic and interactive C)


omnipotent and reflective D)


omnipotent and symbolic E)


reflective and interactive

36)


The omnipotent view of management means __________.


36)


______ A)


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


outside forces have the most influence on organizational outcomes C)


the top manager is the only person in charge D)


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


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

37)


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.


37)


______ A)


dynamic B)


symbolic C)


omnipotent D)


interactive E)


reflective

38)


The symbolic view of management means __________.


38)


______ A)


successful managers become role models for employees B)


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


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


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


managers have only a limited effect on organizational outcomes

39)


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


39)


______ A)


the rules and policies implemented by top managers B)


the organization's environment C)


the organization's culture D)


the activities of industry competitors E)


the laws and regulations governing workplace practices

40)


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


40)


______ A)


substantial B)


negative C)


limited D)


moderate E)


unlimited

41)


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


41)


______ A)


the employees of the organization B)


the organization's culture and environment C)


federal and provincial governments D)


industry regulation E)


the organization's board of directors

42)


Despite the existence of both internal and external constraints, managers can still improve organizational performance by


42)


______ A)


introducing new rules and procedures. B)


influencing the organization's culture and environment. C)


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


delegating more responsibility to employees. E)


redesigning the organization's structure.

43)


The external environment consists of the global environment, __________.


43)


______ A)


primary environment, and the general environment B)


organizational culture, and the general environment C)


primary environment, and the secondary environment D)


specific environment, and the general environment E)


national culture, and the specific environment

44)


An organization's specific environment __________.


44)


______ A)


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


is unique and changes with conditions C)


is determined by the top level of management D)


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


includes demographic and technological conditions that may affect the organization

45)


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 __________.


45)


______ A)


pressure groups B)


employees C)


lawyers D)


shareholders E)


legislators

46)


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


46)


______ A)


customers B)


pressure groups C)


demographics D)


competitors E)


suppliers

47)


The primary goal of managers when dealing with suppliers is to ensure a steady flow of __________.


47)


______ A)


customers at the distribution outlets B)


industry entrants to help maximize the competition among suppliers C)


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


inputs at the lowest price available E)


cash from investors into the organization

48)


The Internet is having an impact on determining who an organization's competitors are because it has __________.


48)


______ A)


made the products they sell more valuable to the customer B)


made it more difficult for smaller competitors to compete on a global scale C)


virtually eliminated geographic boundaries D)


defined the common markets for all industry competitors E)


virtually eliminated the need for shopping malls

49)


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?


49)


______ A)


government agency B)


pressure group C)


customer D)


competitor E)


supplier

50)


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?


50)


______ A)


government agency and competitor B)


pressure group and supplier C)


customer and special-interest group D)


both are examples of suppliers E)


pressure group and competitor

51)


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


51)


______ A)


demographics B)


interest rates C)


government legislation D)


inflation E)


competitors

52)


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.


52)


______ A)


specific B)


general C)


forward D)


secondary E)


primary

53)


United Parcel Service represents what factor to Canada Post in its specific environment?


53)


______ A)


supplier B)


government agency C)


competitor D)


pressure group E)


customer

54)


Economic conditions include all of the following factors except __________.


54)


______ A)


changes in disposable income B)


stock market fluctuations C)


interest rates D)


federal government legislation E)


inflation

55)


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


55)


______ A)


the competition bureau B)


human rights C)


egg marketing boards D)


interest rates E)


employment equity

56)


To a cable television provider like Shaw Cablesystems, a satellite TV company like Bell ExpressVu would be considered a __________.


56)


______ A)


supplier B)


regulator C)


competitor D)


pressure group E)


customer

57)


According to our textbook, __________ is having an impact on determining an organization's competitors because it has virtually eliminated geographic boundaries.


57)


______ A)


the intranet B)


the Internet C)


the local area network D)


video conferencing E)


government legislation

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)


government agency B)


competitor C)


pressure group D)


customer E)


supplier

59)


The global environment of an organization includes which of the following?


59)


______ A)


pressure groups B)


issues directly relevant to achieving organizational goals C)


stakeholders D)


suppliers E)


demographic conditions

60)


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


60)


______ A)


pressure groups B)


competitors C)


suppliers D)


political conditions E)


weather conditions

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)


sociocultural E)


technological

63)


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


63)


______ A)


sociolegal condition B)


sociocultural condition C)


political/sociological condition D)


demographic condition E)


political/legal 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)


Canada's Employment Equity Act B)


Canada's Competition Act C)


Canadian Charter of Rights and Freedoms D)


Canadian Civil Liberties Act E)


Canadian Human Rights Act

65)


Sociocultural conditions consist of the __________.


65)


______ A)


level of unemployment and real economic incomes of workers B)


changing expectations of the society in which organizations operate C)


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


demographic profiles of an organization's suppliers E)


socialization processes that help to maintain organizational cultures

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)


competitive C)


political/legal D)


technological E)


sociocultural

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)


economic B)


sociocultural C)


political/legal D)


technological E)


demographic

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)


demographic B)


technological C)


sociocultural D)


economic E)


political/legal

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)


economic B)


political/legal C)


technological D)


sociocultural E)


demographic

70)


Which of the following demographic groups includes individuals who were born between the years 1946-1964?


70)


______ A)


the Depression group B)


the baby boomers C)


Generation Y D)


the World War II group E)


Generation X

71)


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)


political/legal C)


economic 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)


global B)


demographic C)


technological D)


sociocultural E)


political

74)


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


74)


______ A)


government subsidies B)


a single market C)


protected industries D)


nationalistic policies E)


border controls

75)


The primary motivation for the countries of the EU joining together was to reassert their economic position against the strength of the United States and __________.


75)


______ A)


Russia B)


Canada C)


China D)


Mexico E)


Japan

76)


Today, exports to the United States are equivalent to about __________ of Canada's GDP.


76)


______ A)


80 percent B)


one-half C)


90 percent D)


one-third E)


70 percent

77)


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


77)


______ A)


NAFTA B)


FTAA C)


Southern Cone Common Market D)


ASEAN E)


Mercosur

78)


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


78)


______ A)


GATT B)


Mercosur C)


ASEAN D)


WTO E)


NAFTA

79)


The WTO is a global organization that evolved from __________.


79)


______ A)


EEC B)


the Maastricht Treaty C)


GATT D)


ASEAN E)


NAFTA

80)


Canada's economy is best described as __________.


80)


______ A)


a command economy with some private sector control B)


a command economy with no private sector control C)


a market economy with no government control D)


a command economy with some government control E)


a market economy with some government control

81)


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


81)


______ A)


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


inflation rates, tax policies, and political stability C)


tax policies, employment laws, and cultural differences D)


tax policies, political stability, and cultural differences E)


currency exchange rates, inflation rates, and tax policies

82)


From a cultural standpoint, research indicates that __________ has a greater effect on employees than __________.


82)


______ A)


national culture; employment law B)


national culture; organizational culture C)


organizational culture; national culture D)


employment law; religion E)


organizational culture; religion

83)


The cultural dimension of __________ measures the degree to which the members of a society expect power to be unequally shared.


83)


______ A)


in-group collectivism B)


uncertainty avoidance C)


humane orientation D)


assertiveness E)


power distance

84)


The cultural dimension of __________ measures the degree to which a society relies on social norms and procedures to alleviate the unpredictability of future events.


84)


______ A)


power distance B)


future orientation C)


uncertainty avoidance D)


assertiveness E)


performance orientation

85)


Transnational corporations __________.


85)


______ A)


maintain significant operations in multiple countries but manage them from a base in the home country B)


organize by industry to eliminate the artificial geographic barriers between countries C)


follow the tastes, preferences, and values of the home country D)


do not attempt to manage foreign operations from the host country E)


decentralize decision making to managers hired in the host countries

86)


Montreal-based Bombardier manufactures aircraft and rail transportation equipment. It employs more than 60,000 workers in production facilities on five continents. All management decisions with company-wide impact continue to be made in its global headquarters in Canada. Bombardier is best described as a __________ corporation.


86)


______ A)


transnational B)


borderless C)


virtual D)


domestic E)


multinational

87)


When an organization drops its structure based on countries and reorganizes according to industries, it is pursuing a global business approach known as __________.


87)


______ A)


polycentric organization B)


transnational organization C)


multinational organization D)


multicultural organization E)


borderless organization

88)


Borderless organizations __________.


88)


______ A)


arrange structures that reduce artificial industry barriers B)


reflect a polycentric attitude C)


manage their global operations from a base in their home country D)


reflect an ethnocentric attitude E)


arrange structures that reduce artificial geographical barriers

89)


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


89)


______ 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 C)


a company that maintains significant operations in at least two countries but organizes by industry to reduce geographical barriers

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)


Which of the following definitions best describes a borderless corporation?


90)


______ A)


a company that maintains significant operations in at least two countries and has multiple home bases 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 organizes by industry to reduce geographical barriers

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 but decentralizes management to each country

91)


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.


91)


______ A)


polycentric B)


borderless C)


multicultural D)


multinational E)


transnational

92)


Which of the following is the basic difference between multinational corporations and transnational corporations?


92)


______ A)


Multinational corporations pay more in taxes than transnational corporations do. B)


Transnational corporations are run by the parent company but must be owned by a local, national company.

C)


Multinational corporations receive more support from host country governments than transnational corporations do.

D)


Multinational corporations typically do business with more countries than transnational corporations do. E)


Decision-making in transnational corporations takes place locally rather than at home country headquarters.

93)


Multinational corporations (MNCs) became commonplace in the __________.


93)


______ A)


1960s B)


1980s C)


1950s D)


1940s E)


1970s

94)


Which of the following strategies for going global involves the lowest level of risk and investment?


94)


______ A)


foreign contracting B)


strategic alliances C)


foreign subsidiary D)


exporting E)


licensing and franchising

95)


Which of the following strategies for going global involves the highest level of risk and investment?


95)


______ A)


exporting B)


foreign contracting C)


strategic alliances D)


foreign subsidiary E)


licensing and franchising

96)


Which of the following strategies for going global involves a higher level of risk and investment than strategic alliances?


96)


______ A)


foreign subsidiary B)


licensing C)


foreign contracting D)


franchising E)


exporting

97)


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


97)


______ A)


foreign contracting B)


importing C)


licensing D)


exporting E)


franchising

98)


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


98)


______ A)


licensing and franchising B)


exporting and importing C)


establishing foreign subsidiaries D)


forming joint ventures E)


hiring foreign brokers to represent their product line

99)


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


99)


______ A)


exporting B)


franchising C)




licensing E)


strategic alliances

100)


A joint venture is a specific type of __________.


100)


_____ A)


licensing agreement B)


strategic alliance C)


franchise D)


foreign contracting arrangement E)


foreign subsidiary

101)


A domestic firm and a foreign firm sharing the cost of developing new products or building production facilities would be called a __________.


101)


_____ A)


foreign subsidiary B)


brokering agreement C)


transnational venture D)


franchising agreement E)


strategic alliance

102)


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


102)


_____ A)


franchises B)


joint ventures C)


transnational ventures D)


subsidiaries E)


strategic alliances

103)


Compared to many other countries, Canada's legal-political environment is considered __________.


103)


_____ A)


stable B)


radical C)


unstable D)


fixed E)


dynamic

104)


From a legal-political standpoint, some large corporations have postponed doing business with China and other Asian countries due to __________.


104)


_____ A)


diverse tax policies B)


stable government policies C)


unstable inflation rates D)


fluctuating currency exchange rates E)


political interference

105)


Which of the following are the two dimensions of environmental uncertainty?


105)


_____ A)


degree of risk and degree of complexity B)


degree of change and degree of complexity C)


degree of impact and degree of uncertainty D)


degree of complexity and degree of impact E)


degree of change and degree of flexibility

106)


Since the emergence of digital music formats, the recorded music industry has been operating in an environment that is best described as __________.


106)


_____ A)


dynamic B)


static C)


stable D)


divergent E)


flexible

107)


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


107)


_____ A)


difficult B)


dysfunctional C)


divergent D)


dynamic E)


transitory

108)


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


108)


_____ A)


efficiency B)


uncertainty C)


product development D)


inflation E)


technology

109)


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


109)


_____ A)


dynamic and flexible B)


simple and stable C)


complex and stable D)


simple and dynamic E)


complex and dynamic

110)


__________ are any constituencies in the organization's external environment that are affected by the organization's decisions and actions.


110)


_____ A)


Consumers B)


Stockholders C)


Suppliers D)


Pressure groups E)


Stakeholders

111)


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.


111)


_____ A)


complexity B)


stability C)


change D)


risk E)


flexibility

112)


The first step of managing external stakeholder relationships is to identify who the stakeholders are. The second step is to determine __________.


112)


_____ A)


how to manage the different stakeholder relationships B)


how many stakeholders there are in each stakeholder group C)


what the law courts might do when a stakeholder files a claim against the organization D)


what particular interests or concerns the stakeholders might have E)


how critical each stakeholder is to the organization

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

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 business's 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.

113)


If Jeff's company decided to open another company in Taiwan but manage it from its headquarters in Canada, it would be considered a __________.


113)


_____ A)


multinational corporation B)


transnational corporation C)


global business alliance D)


regional trade alliance E)



114)


If Jeff's company decides to open a completely new operation in Thailand, tailoring the company to local customs and marketing strategies and hiring local managers, it would be considered a __________.


114)


_____ A)


borderless organization B)


global business alliance C)


transnational corporation D)


multinational corporation E)


regional trade alliance

115)


If Jeff's company eliminated country-designated locations and reorganized based on industry groups, it would best be described as a __________.


115)


_____ A)


transnational organization B)


polycentric organization C)


global business alliance D)


multinational corporation E)




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.

116)


An Internet-based company that is facing many new competitors and frequent technological breakthroughs is operating in what kind of environment?


116)


_____ A)


divergent B)


static C)


stable D)


flexible E)


dynamic

117)


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 __________.


117)


_____ A)


stability B)


complexity C)


simplicity D)


divergency E)


flexibility

118)


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.


118)


_____ A)


flexible B)


divergent C)


stable D)


complex E)


static

119)


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 __________.


119)


_____ A)


change; flexibility B)


impact; uncertainty C)


change; complexity D)


complexity; risk E)


complexity; impact

120)


Given a choice, most managers would prefer to operate in cell 1 of the environmental uncertainty matrix, where the environment is __________.


120)


_____ A)


complex and dynamic B)


dynamic and flexible C)


complex and stable D)


simple and dynamic E)


simple and stable


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!

121)


The external environment of DigiTech consists of the specific environment, __________.


121)


_____ A)


general environment, and secondary environment B)


specific environment, and organizational culture C)


primary environment, and secondary environment D)


general environment, and global environment E)


primary environment, and global environment

122)


The upcoming federal election and the potential change of government involves which factor in DigiTech's external environment?


122)


_____ A)


political/legal conditions B)


demographic conditions C)


sociocultural conditions D)


economic conditions E)


global conditions

123)


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


123)


_____ A)


sociocultural conditions B)


technological conditions C)


political/legal conditions D)


global conditions E)


economic conditions

124)


Rapid changes in __________ conditions have resulted in shorter product development cycles for DigiTech.


124)


_____ A)


technological B)


economic C)


sociocultural D)


global E)


political/legal

125)


In DigiTech's specific environment, the number of __________ is increasing and there are shortages among its key __________.


125)


_____ A)


suppliers; investors B)


competitors; suppliers C)


customers; competitors D)


pressure groups; customers E)


investors; agents

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

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.

126)


Daniel begins by defining stakeholders as __________.


126)


_____ A)


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


any constituencies in the external environment that are affected by the organization's decisions and actions

C)


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


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


the constituencies in the external environment that compete with the organization

127)


Daniel decides how critical each stakeholder is to the organization. This is the __________ step in managing stakeholder relationships.


127)


_____ A)


fifth B)


first C)


second D)


fourth E)


third

128)


Daniel identifies who the organization's stakeholders are. This is the __________ step in managing stakeholder relationships.


128)


_____ A)


fourth B)


second C)


fifthD)


first E)


third

129)


Daniel determines what the particular interests or concerns of each stakeholder might be. This is the __________ step in managing stakeholder relationships.


129)


_____ A)


second B)


fifth C)


third D)


fourth E)


first

130)


Daniel determines how to manage the different stakeholder relationships based on how uncertain the environment is. This is the __________ step in managing stakeholder relationships.


130)


_____ A)


second B)


third C)


first D)


fifth E)


fourth

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

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.

131)


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 __________.


131)


_____ A)


Europe B)


Southeast Asia C)


South America D)


Japan and Germany E)


Mexico and the United States

132)


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 __________.


132)


_____ A)


transnational corporation B)


multinational corporation C)


joint venture D)


global trade alliance E)



133)


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 __________.


133)


_____ A)


setting up a foreign subsidiary B)


licensing C)




franchising E)


exporting

134)


J e n n i f e r a n d J a m e s d e c i d e t o a l l o w a c o m p a n y i n H o n g K o n g t o u s e t h e r i g h t s t o t h e i r s o f t w a r e, i t s b r a n d n a m e , a n d p r o d u c t s p e c i fi c a t i o n s i n r e t u r n f o r a l u m p-sum payment. This agreement is known as a(n) __________.


134)


_____ A)


joint venture B)


export alliance C)


strategic alliance D)


franchise E)


foreign subsidiary


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 review your notes, you wonder how you will fit all the information into the allotted half-hour presentation time!

135)


To help explain the main advantages of regional trade alliances, you will point out that EU member countries now have __________.


135)


_____ A)


nationalistic policies B)


government subsidies C)


protected industries D)


border controls E)


a single market

136)


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


136)


_____ A)


Mercosur B)


FTASAN C)


ASEAN D)


the Southern Cone Common Market E)


SEAFTA

137)


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


137)


_____ A)


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


a unilateral trading system C)


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


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


the only global organization that monitors and promotes competition between 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.

138)


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 __________.


138)


_____ A)


fixed B)


command-based C)


dynamic D)


stable E)


flexible

139)


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 __________.


139)


_____ 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)


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


national culture has a greater effect on employees than economic conditions

140)


Samantha will recommend forming a strategic alliance with a Swiss-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 __________.


140)


_____ A)


franchising B)


establishing a subsidiary C)


establishing a joint venture D)


licensing E)


exporting

ESSAY. Write your answer in the space provided or on a separate sheet of paper. 141)


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.

142)


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

143)


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

144)


In a short essay, explain the difference between a multinational corporation (MNC), a transnational corporation (TNC), and a borderless organization. Include examples of companies for each of the types of organizations discussed.


1)


FALSE 2)


TRUE 3)


TRUE 4)


FALSE 5)


FALSE 6)


TRUE 7)


FALSE 8)


TRUE 9)


TRUE 10)


TRUE 11)


FALSE 12)


FALSE 13)


TRUE 14)


TRUE 15)


FALSE 16)


FALSE 17)


TRUE 18)


TRUE 19)


TRUE 20)


FALSE 21)


FALSE 22)


TRUE 23)


FALSE 24)


FALSE 25)


FALSE 26)


FALSE 27)


TRUE 28)


TRUE 29)


FALSE 30)


FALSE 31)


TRUE 32)


FALSE 33)


TRUE 34)


FALSE 35)


D 36)


A 37)


C 38)


E 39)


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B 42)


B 43)


D 44)


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A 46)


C 47)


D 48)


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A 72)


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E 76)


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E 93)


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B 99)


B 100)


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E 102)


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D 108)


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E 111)


A 112)


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A 114)


C 115)


E 116)


E 117)


B 118)


D 119)


C 120)


E 121)


D 122)


A 123)


E 124)


A 125)


B 126)


B 127)


E 128)


D 129)


A 130)


E 131)


E 132)


A 133)


A 134)


D 135)


E 136)


C 137)


D 138)


D 139)


A 140)


B 141)


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.

142)


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 becoming increasingly irrelevant, the potential for intelligent organizations to grow expands dramatically.

143)


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.

144)


a. Multinational corporation: This kind of organization which maintains significant operations in multiple countries but is managed from a base in the home country inaugurated the rapid growth in international trade. With its focus on control from the home country, the MNC is characteristic of the ethnocentric attitude. Some examples of companies that can be considered MNCs include: Bombardier, Alcan, Sony, Deutsche Bank AG, and Merrill Lynch. Although these companies have considerable global holdings, management decisions with company-wide implications are made from headquarters in the home country.b. Transnational corporation (TNC): This company maintains significant operations in more than one country but decentralizes management to the local country. This type of organization doesn't attempt to manage foreign operations from its home country. Instead, local employees typically are hired to manage the business, and marketing strategies for each country are tailored to that country's unique characteristics. This type of global organization reflects the polycentric attitude. For example, Switzerland-based Nestl , the world's largest food company, can be described as a transnational. With operations in almost every country on the globe, its managers match the company's products to its consumers. In parts of Europe, Nestl sells products that are not available in North or Latin America.c. Borderless organization because of the increasingly global environment, many large well-known companies are moving to more effectively globalize their management structure by eliminating structural divisions that impose artificial geographical barriers. The borderless organization approaches global business from a geocentric attitude. For example, IBM dropped its organizational structure based on country and reorganized into 14 industry groups. Borderless management is an attempt by organizations to increase efficiency and effectiveness in a competitive global marketplace.

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testbankcollege.eutestbankcollege.eu/sample/Test...Canadian-Edition-5th-E… · Web viewThe World Trade Organization was formed in 1995 and evolved ... currency exchange rates,