International Management Test Bank
Course Introduction
International Management explores the complexities and challenges of managing organizations in a global context. The course examines key concepts such as cross-cultural communication, global strategy formulation, international human resource management, and the impact of cultural, economic, legal, and political environments on multinational enterprises. Students will analyze case studies and real-world examples to understand how managers adapt business practices to diverse international markets, develop effective leadership skills in multicultural settings, and navigate the ethical and social responsibilities of operating worldwide. The course prepares students to think strategically and manage effectively in a rapidly changing global business landscape.
Recommended Textbook
International Management Culture Strategy and Behavior 10th Edition by Fred Luthans
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1051 Verified Questions
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Page 2
Chapter 1: Globalization and International Linkages
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Sample Questions
Q1) Which of the following economies is projected to become the largest by 2050 using market exchange rates?
A) China
B) India
C) Australia
D) Brazil
Answer: A
Q2) Hungary's economy was the only economy in the EU to continue to grow during the global recession of 2008-2009.
A)True
B)False
Answer: False
Q3) About 46 percent of employees in both the United States and Russia would prefer a work schedule that fluctuates between work and leisure,mirroring a pattern of recurring sabbaticals.
A)True
B)False
Answer: True
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Chapter 2: The Political, Legal, and Technological Environment
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Sample Questions
Q1) According to the World Bank,which of the following economies does not rank high on the ease-of-doing-business index?
A) The Philippines
B) Singapore
C) The United Kingdom
D) The United States
Answer: A
Q2) In the context of technological advancements,outsourcing,and offshoring,low-paid workers in India and Asian countries now are being given subcontracted work such as
A) insurance jobs
B) auto industry jobs
C) labor-intensive hardware development jobs
D) code-writing jobs
Answer: D
Q3) The most common form of totalitarian government is communist totalitarianism.
A)True
B)False
Answer: True
Page 4
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Chapter 3: Ethics, Social Responsibility, and Sustainability
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Sample Questions
Q1) The _____ specifies the distribution of rights and responsibilities among different participants in a corporation and spells out the rules and procedures for making decisions on corporate affairs.
A) corporate governance structure
B) nongovernmental organizations
C) Foreign Corrupt Practices Act
D) Rainforest Action Network
Answer: A
Q2) The United Nations has a division dedicated to the education,promotion,facilitation,and advocacy of sustainable practices and environmentally sound concerns called the _____.
A) UNRWA
B) UNIFEM
C) UNODC
D) UNEP
Answer: D
Q3) The study of morality and standards of conduct is referred to as ethics.
A)True
B)False
Answer: True
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Chapter 4: The Meanings and Dimensions of Culture
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Sample Questions
Q1) According to Hofstede's time orientation dimension,which of the following statements is true about long-term-oriented societies?
A) Traditions are sacrosanct.
B) Family life is guided by shared tasks.
C) Service to others is an important goal.
D) Students attribute success and failure to luck.
Q2) Dutch researcher,Fons Trompenaars,recommends that when people from specific cultures do business in diffuse cultures,they should _____.
A) try to get to the point and be efficient
B) learn to structure meetings with the judicious use of agendas
C) not acknowledge achievements or skills that are irrelevant to the issues being discussed
D) not get impatient when people are being indirect or circuitous
Q3) According to Dutch researcher Geert Hofstede,there are four original dimensions of culture.These are:
A) power distance, uncertainty avoidance, individualism, and masculinity.
B) tolerance, group orientation, aggressiveness, and forwardness.
C) group orientation, uncertainty avoidance, aggressiveness, and masculinity.
D) tolerance, power distance, individualism, and aggressiveness.
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Page 6
Chapter 5: Managing Across Cultures
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Sample Questions
Q1) In _____,spots are viewed as cultural events and reviewed as if they were literature or films.
A) India
B) China
C) Germany
D) France
Q2) At Xiaomi,individual achievement is highly regarded.
A)True
B)False
Q3) When doing business in Arab countries,it is mandatory for the other party to bring an expensive gift for the Arab businesspeople.
A)True
B)False
Q4) Which of the following statements is true about French workers?
A) They are known to have an intense work ethic.
B) They have a reputation for high productivity.
C) They are willing to sacrifice their leisure time.
D) They derive motivation from professional accomplishment.
Q5) Describe the four different strategic dispositions.
Q6) List the characteristics of a high-context culture.
Page 7
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Chapter 6: Organizational Cultures and Diversity
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Sample Questions
Q1) As the diversity of a group increases,the likelihood of all members perceiving things in the same way increases sharply.
A)True
B)False
Q2) To manage a global team,international managers must take into consideration three factors: culture,communication,and trust.
A)True
B)False
Q3) The United Kingdom's corporate characteristic is:
A) administrative.
B) industrial.
C) pragmatic.
D) commercial.
Q4) A _____ group is characterized by members who share similar backgrounds and who generally perceive,interpret,and evaluate events in similar ways.
A) multicultural
B) bicultural
C) token
D) homogeneous
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Chapter 7: Cross-Cultural Communication and Negotiation
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Sample Questions
Q1) In terms of verbal communication styles,an example of a high-context society is
A) Iceland
B) Australia
C) Canada
D) Japan
Q2) The final step in the negotiation process is:
A) the persuasion phase.
B) interpersonal relationship building.
C) the agreement phase.
D) exchanging task-related information.
Q3) Research conducted by John L.Graham shows that during a buyer-seller negotiation simulation:
A) Brazilians use a discussion of rewards and commands less than Americans.
B) Brazilians use self-disclosures more than Americans.
C) Americans make first offers that have equal profit levels as their opponents.
D) Americans make more use of commands than their Japanese counterparts.
Q4) Time limits cannot be used tactically if the negotiators meet at a neutral site.
A)True
B)False
Page 9
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Chapter 8: Strategy Formulation and Implementation
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Sample Questions
Q1) Which of the following findings regarding the base of the pyramid (BOP)strategy has significant implications for the globalization-national responsiveness framework?
A) Building relationships directly and at the local level contributes to the reputation and fosters the trust necessary to overcome the lack of formal institutions such as the rule of law.
B) The BOP may be an ideal environment for incubating new, leapfrog technologies.
C) Business models forged successfully at the base of the pyramid have the potential to travel profitably to higher-income markets.
D) The BOP strategy brings focus to those who are too poor to be viable customers for multinational companies.
Q2) Firms that internationalize after being domestically established have to overcome all of the following barriers except:
A) their domestic orientation.
B) their internal domestic political ties.
C) their domestic decision-making inertia.
D) their anti-risk seeking behavior.
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Chapter 9: Entry Strategies and Organizational Structures
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Sample Questions
Q1) What are the basic components of the structural framework of a transnational network?
Q2) Companies that spend a relatively large share of their revenues on research and development (R&D)are likely to be licensees,and those that spend very little on R&D are more likely to be licensors.
A)True
B)False
Q3) One disadvantage of a global product division structure is that division managers may pursue currently attractive geographic prospects for their products and neglect other areas with better long-term potential.
A)True
B)False
Q4) _____ can be best defined as the use of defined structures and systems in decision making,communicating,and controlling.
A) Localization
B) Acclimatization
C) Formalization
D) Indigenization
Q5) Describe the common conditions under which licensing is used.
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Chapter 10: Managing Political Risk, Government Relations, and Alliances
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Sample Questions
Q1) Macro risk has been losing importance in the recent years because a growing number of countries are able to successfully transition to a market-driven economy.
A)True
B)False
Q2) All of the following actions raise the political risk of doing business in China except _____.
A) interpreting rules and regulations by officials
B) industrial piracy
C) restrictions on foreign exchange transactions
D) concerns on safety and reliability of product quality
Q3) Explain the special nature of foreign direct investment (FDI).
Q4) Which of the following criteria involves maximum political risk?
A) International financial standing
B) Economic growth during previous 5 years
C) Restrictions imposed on imports
D) Effectiveness of public administration
Q5) What is terrorism? Explain the various types of terrorism.
Q6) Explain relative bargaining power analysis.
12
Q7) Explain and give examples of the three basic categories of political risks.
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Chapter 11: Management Decision and Control
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Sample Questions
Q1) The process of giving individuals and teams the resources,information,and authority they need to develop ideas and effectively implement them is referred to as _____.
A) total quality management
B) reengineering
C) empowerment
D) kaizen
Q2) Direct controls are particularly important in international management because of the great expense associated with indirect methods.
A)True
B)False
Q3) If decentralized decision making is in place,decisions are:
A) made at the top management level.
B) made at the middle management level.
C) delegated to operating personnel.
D) contracted to external consultants.
Q4) Explain with an example how total quality management (TQM)impacts manufacturing.
Q5) What are assessment centers and how are they used by multinational companies (MNCs)?
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Chapter 12: Motivation Across Cultures
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Sample Questions
Q1) _____ consists of a job's content,the methods that are used on the job,and the way in which the job relates to others in the organization.
A) Job design
B) Task portfolio
C) Job composition
D) Job structure
Q2) What are the basic assumptions on which the hierarchy-of-needs theory rests?
Q3) One of the characteristics of high achievers identified by researchers is their tendency to be team players.
A)True
B)False
Q4) Which of the following needs is correctly matched with its descriptions?
A) Physiological needs consist of the needs for food, clothing, shelter, and other basic, physical needs.
B) Safety needs consist of the needs for power and status.
C) Social needs are the desires to reach one's full potential by becoming everything one is capable of becoming.
D) Self-actualization needs are the desires for security, stability, and the absence of pain.
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Page 14
Chapter 13: Leadership Across Cultures
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Sample Questions
Q1) Which of the following is a quality needed to be a servant leader?
A) Listening
B) Predictability
C) Entrepreneurship
D) Hindsight
Q2) This individual monitors follower performance and takes corrective action when deviations from standards occur.
A) A contingent reward leader
B) An active management-by-exception leader
C) A passive management-by-exception leader
D) A laissez-faire leader
Q3) Authoritarian leadership is the use of both work-centered and people-centered approaches.
A)True
B)False
Q4) This leader avoids intervening or accepting responsibility for follower actions.
A) A passive management-by-exception leader
B) A laissez-faire leader
C) A contingent reward leader
D) An active management-by-exception leader
Page 15
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Chapter 14: Human Resource Selection and Development
Across Cultures
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Sample Questions
Q1) Three-quarters of the companies surveyed in 2015 by Brookfield Global Relocation Services stated that they were facing increasing pressure to reduce the overall cost of their expatriate programs.
A)True
B)False
Q2) An approach to developing an expatriate compensation package that involves giving the expat a predetermined amount of money and letting the individual make his/her own decisions regarding how to spend it is referred to as the _____.
A) localization approach
B) cafeteria approach
C) lump-sum method
D) balance-sheet approach
Q3) The hardest training,in terms of preparation time,is to place a cultural integrator in each foreign operation.
A)True
B)False
Q4) Discuss the various approaches that can be used to formulate a compensation package.
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Q5) What is a cultural assimilator? What do cultural assimilators try to accomplish?