Cross-Cultural Management Final Exam Questions
Course Introduction
Cross-Cultural Management explores the complexities of managing people and organizations in a globalized business environment. The course examines how cultural differences affect communication, leadership, negotiation, teamwork, and decision-making in multinational settings. Students will analyze theoretical frameworks and real-world case studies to understand the impact of cultural values, norms, and practices on organizational behavior. Emphasis is placed on developing intercultural competence, adaptive management strategies, and inclusive leadership styles to effectively navigate and leverage diversity within international teams and cross-border collaborations.
Recommended Textbook
M International Business 1st Edition by Michael Geringer
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Page 2
Chapter 1: The Challenging World of International Business
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Sample Questions
Q1) Which of the following are identified in the text as being drivers of globalization?
A)Political
B)Social
C)Cultural
D)Economic
E)Geographic
Answer: A
Q2) Internal environmental forces are commonly referred to as controllable.
A)True
B)False
Answer: True
Q3) Expanded international trade is linked with the creation of more and better jobs.
A)True
B)False
Answer: True
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Chapter 2: International Trade and Investment
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Q1) Dunning's Eclectic Theory of International Production provides an explanation for the choice by the international firm of its overseas production facilities.
A)True
B)False
Answer: True
Q2) If a Chinese worker earns $1.00 a day,then goods produced by this worker will cost less than the same goods produced by an American earning $18.00 an hour.
A)True
B)False
Answer: False
Q3) Portfolio investment is the purchase of sufficient stock in a firm to obtain significant management control.
A)True
B)False
Answer: False
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Chapter 3: International Institutions From an International Business Perspective
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Sample Questions
Q1) The main difference between a free trade area (FTA)and a customs union is that in a customs union,there is
A)no need for passport controls.
B)a shared border patrol.
C)shared currency.
D)a common external tariff.
Answer: D
Q2) Economic integration agreements are nice for the insiders,such as the U.S.Mexico and Canada with NAFTA,but they stand in the way of WTO progress because they violate basic guidelines of the WTO.Agree or disagree.
Answer: This question goes to an understanding of integration and the impact of integration agreements on the firm and on the WTO.One possible way to approach the answer to this question is to list the benefits to economic integration agreements for insiders and then the challenges they place on outsiders.Then a next step would be to weigh these factors against WTO rules,which eliminate the distinction between insider and outsider.
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5
Chapter 4: Sociocultural Forces
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Sample Questions
Q1) There are few cultural misunderstandings in the discipline of marketing.
A)True
B)False
Q2) An achievement culture is one in which members are
A)rewarded with social status for who they are in a spiritual sense.
B)rewarded for what they do,what they have accomplished,so what they are.
C)not rewarded at all because achievement is a doing mentality.
D)rewarded for their lineage.
Q3) Your neighbor's business is cutting down an acre of first-growth,virgin forest and planting a lawn and garden beds at their HQs.You are likely to be in an Anglo culture where domination of nature seems normal.
A)True
B)False
Q4) Material culture describes how people make things,who makes what,and why.
A)True
B)False
Q5) Low context cultures such as the U.S.have explicit communication patterns.
A)True
B)False
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Chapter 5: Natural Resources and Environmental Sustainability
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Q1) Mountain barriers found in the area of the Pakistan-Afghanistan border impede travel and separate populations.
A)True
B)False
Q2) Porter's diamond can be used to explain the importance of the environment and natural resources.
A)True
B)False
Q3) This is the only industrialized country that has not ratified the Kyoto Protocol,a UN convention on climate change.
A)China
B)France
C)Russia
D)the U.S.
Q4) Every coast between 20 and 30 degrees of the equator (north or south)is dry.
A)True
B)False
Q5) Explain the concept of sustainability as applied to business,using examples.
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Chapter 6: Political and Trade Forces
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Q1) Nontariff barriers that are not quantitative can be divided into two groups,those established by the government participation in trade and those that are administrative.
A)True
B)False
Q2) Nuisance tariffs require importers to go through the administrative paperwork connected to paying tariffs,even though the payment itself might be quite small.
A)True
B)False
Q3) Only in communist countries do governments own the factors of production.
A)True
B)False
Q4) A nontariff barrier is illustrated by
A)The French requirement in 1982 that all Japanese VCRs be inspected in Poitieres,far from the port and lacking speedy highway connection to the port.
B)The widespread Japanese belief that American rice can cause cancer.
C)The European attitude towards genetically modified crops.
D)All of the above.
Q5) Discuss barriers to trade,using examples to illustrate your points.
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Chapter 7: Intellectual Property and Other Legal Forces
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Q1) Global trademark protection follows the Office of Harmonization in the Internal Market approach.
A)True
B)False
Q2) Where litigation in international disputes should occur is
A)usually evident from the documentation available.
B)at times unclear,in which case,the UN International Court of Justice will make a jurisdictional ruling.
C)often complex,so contracts should include choice of law and choice of forum clauses.
D)dictated by where the problem arose; a problem arising in India is adjudicated in India.
Q3) The source of international law is frequently the United Nations.
A)True
B)False
Q4) The UN Convention on the International Sale of Goods (CISG)has established legal rules and outlined the rights and obligations of the buyer and seller.
A)True
B)False
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Chapter 8: The International Monetary System and Financial Forces
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Q1) Sir Isaac Newton established the price of gold in 1717 and de facto put England on the gold standard.
A)True
B)False
Q2) Monetary policies control the collecting and spending of money by governments.
A)True
B)False
Q3) One possible current currency arrangement is a fixed peg,where the exchange rate of a currency is allowed to move (within a narrow band)with another currency.One example is the Canadian dollar to the U.S.dollar.
A)True
B)False
Q4) Countries put limitations on the convertibility of their currencies when they are concerned that their foreign reserves could be depleted.
A)True
B)False
Q5) The spot rate is the rate for exchange within two days in the currency market.
A)True
B)False
Page 10
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Chapter 9: Labor Forces
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Sample Questions
Q1) In developing nations with poor education systems,the effects of poverty and disease on the workforce are minimal and can be overcome with good HR practices.
A)True
B)False
Q2) In many developing nations,the labor situation brings with it challenges due to A)unwillingness to take positions with foreign employers.
B)suspicion and distrust of foreigners.
C)transitions from rural to urban situations.
D)the effects of poverty and health issues.
Q3) Child labor figures include only children who are paid real wages and employed legally.
A)True
B)False
Q4) Trade unions represent the largest percentage of workers in
A)Sweden and Denmark.
B)France and the U.S.
C)the Netherlands and Switzerland.
D)Italy and Canada.
Q5) What are the forces that affect the quality and quantity of labor in a nation?
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Chapter 10: International Competitive Strategy
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Sample Questions
Q1) Top management of companies generally accept the fact that,to be effective,strategic planning processes should permit ideas to surface from anywhere in the organization and at any time.
A)True
B)False
Q2) In analyzing the corporate controllable variables,management must address the question:
A)who are the company's target customers?
B)what will be the costs that the company will incur in delivering value to its target customers?
C)how much will the company be able to charge for the value it creates for its target customers?
D)who are the company's direct investors?
Q3) International strategy involves decisions that deal with a single area,such as marketing or production.
A)True
B)False
Q4) Discuss the global strategic planning process.
Q5) What international strategy is and why it is important?
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Chapter 11: Organizational Design and Control
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Sample Questions
Q1) According to the text, which of the following dimensions provide the basis for organizational subdivisions at the secondary, tertiary, and still lower levels?
A) capital. B. national subsidiary.
B) domestic or international.
C) function.
D) national subsidiary, domestic or international, and function.
Q2) Problems with the matrix structure include:
A)two or more managers must agree on decisions,which can lead to slow decision making.
B)special divisions often must be established to serve heterogeneous customer segments.
C)global branding and production coordination are hindered.
D)local branding and production coordination are hindered.
E)special divisions often must be established to serve homogenous customer segments.
Q3) What are the four primary dimensions that need to be considered when designing the structure of an international company and why are they important?
Q4) Explain why and where decisions are made among ICs and their subsidiary units.
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Chapter 12: Assessing International Markets
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Q1) Market indicators are economic data that correlate highly with market demand for a product.
A)True
B)False
Q2) _____________ is used by management during the planning process and provides information about threats and opportunities.
A)Market screening
B)Environmental scanning
C)Country screening
D)Segment screening
E)Stock screening
Q3) Size of the urban population and electricity consumption are part of __________ index.
A)market size
B)market growth rate
C)E-commerce readiness
D)Market factor
E)Market availability
Q4) What is the value of government-sponsored trade missions and trade fairs?
Q5) Discuss the requirements of viable markets under the segment approach.
Page 14
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Chapter 13: Entry Modes
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Sample Questions
Q1) Licensing provides income for:
A)fashion designers.
B)computer manufacturers.
C)magazine publishers.
D)fashion designers,computer manufacturers,and magazine publishers.
E)fast-food chains.
Q2) A business established for the purpose of marketing goods and services,not producing them,is a:
A)franchisee
B)direct exporter
C)sales company
D)joint venture
E)corporate venture
Q3) Strategic alliances are
A)partnerships between competitors,customers,or suppliers that may take various forms.
B)another name for a growth triangle.
C)arbitration.
D)is another name for management contracts.
E)wholly owned subsidiaries.
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Chapter 14: Marketing Internationally
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Sample Questions
Q1) International markets served often differ widely because of great variations in the uncontrollable environmental forces.
A)True
B)False
Q2) According to the text,recruitment of salespeople in foreign countries is at times more difficult than recruiting them at home because:
A)of the stigma attached to selling that exists in some areas.
B)the salaries and benefits are more expensive.
C)of the need to hire people who are culturally acceptable to customers and channel members.
D)the salaries and benefits outweighs training costs.
E)of the stigma attached to selling that exists in some areas and of the need to hire people who are culturally acceptable to customers and channel members.
Q3) Sales promotion provides the selling aids for the marketing function and includes activities such as the preparation of point-of-purchase displays,contests,premiums,trade show exhibits,money-off offer,and coupons.
A)True
B)False
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Chapter 15: Global Operations and Supply Chain Management
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Sample Questions
Q1) A traditional approach to product design,which involves a sequential approach to design,has been termed:
A)product-based design.
B)concurrent engineering.
C)over-the-wall.
D)sequenced design.
E)participative design.
Q2) ISO 9000:
A)Is the most-used standard for quality in the United States.
B)Is a set of five universal standards for a quality assurance system agreed to by the ISO.
C)Ensures product quality.
D)Ensures timely delivery.
E)Is the most-used standard for quality in the China.
Q3) The following arrangement can provide a firm with foreign products:
A)domestic subsidiary.
B)wholly owned subsidiary.
C)foreign sales office.
D)joint-venture.
E)strategic alliance..
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Chapter 16: Managing Human Resources in an International Context
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Q1) As international companies increasingly take the geocentric view,we can be certain to see less use of third country nationals.
A)True
B)False
Q2) International status is the status of:
A)every expatriate employee.
B)third country nationals.
C)employees of international organizations.
D)the IC employee who is receiving all applicable allowances and bonuses plus perks.
E)employees of regional organizations.
Q3) In the method favored by the majority of American ICs,the salary part of an expatriate employee's compensation package will generally be governed by the employees' level in the organization and will not be higher because of the foreign assignment.
A)True
B)False
Q4) Worldwide,nearly 50 percent of expatriate positions are held by women.
A)True
B)False
18
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Chapter 17: International Accounting and Financial Management
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Sample Questions
Q1) The capital structure of the firm can be raised externally through A)leveraging and bonds.
B)debt and equity.
C)debt and retained earnings.
D)retained earnings and bonds.
Q2) Multilateral netting reduces foreign exchange transaction costs.
A)True
B)False
Q3) In a money market hedge,the firm matches the balance sheet asset with a liability in the same currency.
A)True
B)False
Q4) Many corporations do not hedge translation exposure.
A)True
B)False
Q5) Income tax is a direct tax levied on earnings;
A)VAT is also a direct tax.
B)VAT is not a tax,in the legal sense.
C)VAT,vertical added tax,is indirect.
D)VAT is an indirect tax.
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