Question: What two things are credited with creating the "global village?"

Answer: electronic media and convenient air travel

Question: The trend of the world economy toward becoming a more interdependent system is referred to as _______.

Answer: globalization

Question: Which of these events are credited with setting up the conditions by which the global economy - goods, people, and money moving freely throughout the world - could flourish.

Answer: The fall of the Berlin Wall, The worldwide trend of governments deregulating their economies, and Asian countries opening their economies to foreign investors

Question: During her interview, Sicily told the recruiter that she had worked overseas for the past six years where she had to learn a new language, understand the social rules of the country she was living in and adjust to cramped living quarters. This recruiter would see these conditions as a demonstration of Sicily's _____.

Answer: adaptability

Question: A company that has operations in several countries is called a(n) ______.

Answer: multinational corporation

Question: _____ managers believe that their native country, culture, language, and behavior are superior to all others.

Answer: Ethnocentric

Question: Foreign companies with manufacturing plants that are allowed to operate in Mexico with special privileges in exchange for employing Mexican citizens are known as _______.

Answer: maquiladoras

Question: Outsourcing is

Answer: using suppliers outside the company to provide goods and services

Question: The ability to move goods and services among nations without any political or economic obstruction is called _____.

Answer: free trade

Question: Which of these are examples of devices countries use to exert trade protectionism?

Answer: import quotas, embargoes, and tariffs

Question: Identify the three principal organizations designed to facilitate international trade.

Answer: World Bank, World Trade Organization, and International Monetary Fund

Question: An economic community, also known as a _______, is a group of nations within a certain geographical region that have agreed to remove trade barriers with one another.

Answer: trading bloc

Question: If Norway decided to reduce import duties for Germany, which allowed Germany to export more cars to Norway at a lower cost, it would create a stronger tie between these two countries. In this situation, Norway is granting Germany _____ trading status.

Answer: most favored nation

Question: The rate at which the currency of one country can be exchanged for the currency of another country is called the _____ rate.

Answer: exchange

Question: A nation's culture:

Answer: operates in large part outside of individual awareness, can seem intangible and perplexing to outsiders, is made up of many nuances, and unconsciously teaches us how to walk, talk, behave, and relate to other people

Question: In a ______ culture, shared meanings are often derived from written and spoken words.

Answer: low-context

Question: ______ time is a preference for doing one thing at a time.

Answer: Monochronic

Question: Lisette is a Canadian manager working in a foreign country on assignment for her company. Lisette is therefore a(n) ______.

Answer: expatriate

Question: True or false: Currently, the United States exports more than it imports.

Answer: FALSE

Question: What are two ways the Internet and World Wide Web give a small business the ability to go global?

Answer: A small business can adjust to changes in the business environment quicker and It is easier to get started because products can be sold online

Question: The situational or environmental characteristics that affect a person's behavior are called _____.

Answer: context

Question: The "shrinking" of time and space as air travel and the electronic media make it easier for people of the world to communicate with one another refers to _____.

Answer: the global village

Question: Globalization is the trend of the world economy becoming a more _______ system.

Answer: interdependent

Question: History shows that countries used to be concerned only with regulating their own economies. As times have changed, goods, people, and money now move more freely throughout the world. These changes reflect the idea of _____.

Answer: a global economy

Question: In terms of ranking, where does the U.S. rank as an exporter?

Answer: The U.S. is the third largest exporter in the world

Question: Globalization Definition:

Answer: The trend of the world economy toward becoming a more interdependent system.

Question: What are 3 important developments in globalization?

Answer: The rise of the "global village" and e-commerce, the worlds becoming one market instead of many national ones, and the rise of both mega-firms and internet enables mini-firms worldwide.

Question: What was Marshall McLuhan significant for?

Answer: He posed the notion of a "global village", where we all share our hopes, dreams, and fears in a "worldpool" of information

Question: Global Village Definition:

Answer: The "shrinking" of time and space as air travel and the electronic media have made it easier for the people around the globe to communicate with one another.

Question: What did Rosabeth Moss Kantor say?

Answer: "We are seeing the results of things started in 1988 and 1989", referring to three historic global changes.

Question: What were the three historic global changes mentioned by Rosabeth Moss Kantor?

Answer: The Berlin Wall fell in the late 1980's, Asian countries began to open their economies to foreign investors, and governments deregulating their economies

Question: Global Economy Definition:

Answer: The increasing tendency of the economies of the world to interact with one another as one market instead of many national markets.

Question: The internet and World Wide Web allow almost anyone to be global, with what two important results?

Answer: Small companies can get started more easily and small companies can maneuver faster

Question: Foreign experience demonstrates what?

Answer: independence, resourcefulness, and entrepreneurship

Question: Cross-Cultural Awareness Definition:

Answer: Ability to operate in different cultural settings.

Question: Multinational Corporation Definition:

Answer: A business firm with operations in several companies.

Question: Ethnocentric Managers Definition:

Answer: Believe that their native country, culture, language and behavior are superior to all others.

Question: Ethnocentrism might be called ________.

Answer: parochialism

Question: Parochialism Definition:

Answer: A narrow view in which people see things solely through their own perspective.

Question: What attributed to the decline in manufacturing jobs in the U.S.?

Answer: U.S. companies have found it cheaper to manufacture outside the states.

Question: Maquiladoras Definition:

Answer: foreign-owned manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens.

Question: Outsourcing Definition:

Answer: Using suppliers outside the company to provide goods and services.

Question: Trade Protectionism Definition:

Answer: The use of government regulations to limit the import of goods and services - to protect their domestic industries against foreign competition.

Question: Is protectionism beneficial?

Answer: No, because of what it does to the overall trading atmosphere.

Question: The devices by which countries try to exert protectionism consists of what?

Answer: tariffs, import quotas, and trade embargoes and sanctions

Question: What did tariff barriers do in the 1920's?

Answer: They led to the loss of jobs and the massive unemployment of the Great Depression in the 1930's.

Question: What are the three principal organizations designed to facilitate international trade?

Answer: World Bank, World Trade Organization, and the International Monetary Fund.

Question: Trading Bloc Definition:

Answer: A group of nations within a geographical region that have agreed to remove trade barriers with one another, also called economic community.

Question: What are the two major trading blocs we are going to consider?

Answer: NAFTA nations and the European Union

Question: Most Favored Nation Definition:

Answer: A country grants other countries favorable trading treatment such as the reduction of import duties

Question: What is the purpose of Most Favored Nation?

Answer: To promote stronger and more stable ties between companies in the two countries.

Question: Exchange Rate Definition:

Answer: The rate at which the currency of one area or country can be exchanged for the currency of another.

Question: Culture Definition:

Answer: Shared set of beliefs, values, knowledge and patterns of behavior common to a group of people

Question: Low-Context Culture Definition:

Answer: Shared meanings are primarily derived from written and spoken words.

Question: Monochronic Time Definition:

Answer: Preference for doing one thing at a time.

Question: Expatriates Definition:

Answer: People living or working in a foreign country

Question: What four questions does Tulgan recommend answering about structure, rules, customs, and leadership to increase your contextual awareness?

Answer: What do you know, what don't you know or understand, what do you need to know or understand better, how can you learn and what resources and support do you need?