International Organizational Behavior
Final Exam Questions
Course Introduction
International Organizational Behavior explores the dynamics of human behavior within organizations operating across borders. This course examines how cultural, social, and institutional factors influence individual and group behavior in multinational environments. Students will analyze topics such as cross-cultural communication, leadership styles, motivation, global team management, ethics, and conflict resolution. Emphasis is placed on understanding how to adapt management practices to diverse international contexts, recognizing the challenges and opportunities that arise when leading in multicultural organizations. Through case studies and practical exercises, students gain insights and skills necessary for effective management in todays globalized workplace.
Recommended Textbook
International Management Culture Strategy and Behavior 9th Edition by Fred Luthans
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Page 2
Chapter 1: Globalization and International Linkages
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Sample Questions
Q1) Which of the following observations about NAFTA is incorrect?
A)Mexican businesses are finding themselves able to take advantage of the U.S. market by producing goods that were previously purchased from Asia
B)Mexican firms are now able to produce products at highly competitive prices thanks to lower-cost labor and proximity to the American market
C)Mexican firms can now export goods into the European community only by paying a heavy tariff
D)Mexico's trade with Asia is on the rise, which is important to the country as it wants to reduce its overreliance on the U.S. market
Answer: C
Q2) As a result of some continuing problems, the international business climate in Poland has not done well.
A)True
B)False
Answer: False
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Chapter 2: The Political, Legal, and Technological Environment
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Sample Questions
Q1) The term "e-cash" stands for:
A)Easy cash
B)Export cash
C)Electronic cash
D)Exchange cash
Answer: C
Q2) Social media can positively impact international business by:
A)Facilitating a fast transition to more open trade and business dealings
B)Increasing shipping and logistical costs of goods
C)Limiting the economic effects to the country experiencing unrest
D)Stabilizing fuel costs
Answer: A
Q3) U.S.MNCs always assumed that bribes were required to ensure contracts in:
A)India
B)The Middle East
C)Asia Pacific
D)Eastern Europe
Answer: B
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Chapter 3: Ethics, Social Responsibility, and Sustainability
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Sample Questions
Q1) Worker safety in Chinese, Bangalore, and Bangladesh factories is a major ethical concern for MNCs whose products are produced in those countries.
A)True
B)False
Answer: True
Q2) Corporate governance may be defined as the system by which business corporations are directed and controlled.
A)True
B)False
Answer: True
Q3) Utilitarianism favors the greatest good for the greatest number of people under a given set of constraints.
A)True
B)False
Answer: True
Q4) One area not addressed by social sustainability is employee welfare.
A)True
B)False
Answer: False
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Chapter 4: The Meanings and Dimensions of Culture
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Q1) Even though there are distinctions among organization cultures, research shows that managers from different countries often have:
A)Same organization policies
B)Value similarities
C)Class similarities
D)Similar political views
Q2) While stereotypes and overgeneralizations should be avoided, there are always individual differences and even subcultures within every country that must be addressed.
A)True
B)False
Q3) According to the text, the highest cultural priority (or value) in the U.S.is:
A)Family security
B)Belonging
C)Freedom
D)Cooperation
Q4) According to the text, in Japan, the top cultural priority is independence.
A)True
B)False
Q5) What is GLOBE? Discuss its cultural dimensions.
Page 6
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Chapter 5: Managing Across Cultures
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Sample Questions
Q1) When internationalization began to gain momentum, there was a hope that many of the procedures and strategies that worked so well at home could be adopted overseas without modification.
A)True
B)False
Q2) Which of the following selections accurately reflects compensation practices in China?
A)Use technical training as reward; recognize egalitarian values; and use "more work more pay" with caution
B)Consider all aspects of labor costs
C)Note high labor costs for manufacturing
D)Use recognition and praise as motivator; avoid pay for performance
Q3) Which of the following is a traditional behavior of Chinese businesspeople?
A)The Chinese never use intermediaries for negotiating business deals
B)If the Chinese give concessions, they do not expect anything in return
C)The Chinese are quick in formulating a plan of action
D)The Chinese place values and principles above money and expediency
Q4) Describe the differences between the four strategic dispositions.What is the principle advantage of each disposition?
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Chapter 6: Organizational Cultures and Diversity
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Q1) In the _____ stage of group development, attention may be directed more toward describing and analyzing the problem or task that has been assigned.
A)Entry
B)Work
C)Action
D)Reflection
Q2) As the diversity of a group increases, the likelihood of all members perceiving things in the same way increases sharply.
A)True
B)False
Q3) Which of the following is not a possible management approach, according to Surinder Kahai?
A)Outcome control
B)Behavior control
C)Mind control
D)Clan control
Q4) A high collectivistic culture in found in the U.S., the U.K., and Australia.
A)True
B)False
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Chapter 7: Cross-Cultural and Negotiation
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Q1) The gesture of putting the thumb and index finger together to form an "O" as the sign for "okay" in the United States is an example of:
A)Chromatics
B)Haptics
C)Chronemics
D)Proxemics
Q2) Distributive negotiation:
A)Occurs when two parties with opposing goals compete over a set value
B)Focuses on the group and is based on long-term interaction
C)Is sometimes called a win-win scenario
D)Involves cooperation between the two groups to integrate interests, create value and invest in the agreement
Q3) Proxemics is the study of communication through body movement and facial expressions.
A)True
B)False
Q4) In high-context societies, the succinct style of communication is very common.
A)True
B)False
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Chapter 8: Strategy Formulation and Implementation
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Q1) TQM covers the full gamut, from strategy formulation to implementation.
A)True
B)False
Q2) An example of the political imperative at work is a retail manufacturer who emphasizes flexibility, response time, small production runs, small minimum-order quantities, and the ability to shift direction as the trends move.
A)True
B)False
Q3) In selecting a geographic location to operate, Japanese firms favor heavily unionized areas.
A)True
B)False
Q4) These individuals are the key to stimulating profit growth within a company.
A)Supervisors
B)Middle managers
C)First-line managers
D)Top managers
Q5) Is there a growing need for strategic management among MNCs? If so, why?
Q6) What is the "BOP" and why is this strategy challenging to implement?
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Chapter 9: Entry Strategies and Organizational Structures
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Q1) The output control in which profit responsibility is shared with product and geographic units is characteristic of a(n):
A)Global area division structure
B)International division structure
C)Matrix structure
D)Transnational network structure
Q2) The structural arrangement that allows a company to develop an overall, unified approach to international operations and helps the firm develop a cadre of internationally experienced managers is an advantage of a(n):
A)Mixed organization structure
B)Global area division structure
C)Global product division structure
D)International division structure
Q3) These agreements typically require payment of a fee upfront and then a percentage of the revenues.
A)Franchise
B)Wholly owned subsidiary
C)Export
D)Joint venture
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Chapter 10: Managing Political Risk, Government Relations, and Alliances
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Q1) Which of the following is not a challenge of doing business in Russia?
A)Corruption
B)Red tape
C)Strong faith in government policies
D)Security concerns
Q2) The most difficult cultural differences to manage in international strategic alliances are power distance and uncertainty avoidance.
A)True
B)False
Q3) In the context of international strategic alliances, value-claiming activities are competitive and distributive.
A)True
B)False
Q4) Examples of proactive political strategies include all of the following except:
A)Formal lobbying
B)Campaign financing
C)Seeking advocacy through embassies and consulates of the home country
D)Downsizing and transferring business elsewhere
Q5) What is expropriation risk?
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Chapter 11: Management Decision and Control
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Q1) Decision making and controlling are two vital and often interlinked functions of international management.
A)True
B)False
Q2) In Germany, managers place a greater emphasis on managing subordinates than on productivity and product quality.
A)True
B)False
Q3) 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
Q4) Amazon's target market is significantly larger, but less loyal, than Alibaba's.
A)True
B)False
Q5) Discuss the relevance of the various performance measures that are used for control purposes.
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Chapter 12: Motivation Across Cultures
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Q1) The theory that focuses on how individuals go about setting goals and responding to them and the overall impact of this process on motivation is:
A)Equity theory
B)Motivation theory
C)Expectancy theory
D)Goal-setting theory
Q2) Process theories of worker motivation explain how employee behavior is initiated, redirected, and halted.
A)True
B)False
Q3) _____ is a psychological process through which unsatisfied wants or needs lead to drives that are aimed at goals or incentives.
A)Ability
B)Inducement
C)Assurance
D)Motivation
Q4) High achievers tend to be high-risk takers.
A)True
B)False
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Chapter 13: Leadership Across Cultures
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Q1) What are the different types of leadership styles?
Q2) There is some evidence that paternalistic leadership is still a common leadership approach in greater China, stemming from Confucian ideology.
A)True
B)False
Q3) This type of leadership behavior has been shown to have a positive impact on employees' attitudes in collectivistic cultures because the care, support, and protection provided by these leaders may address employees' need for frequent contact and close personal relationships.
A)Participative
B)Paternalistic
C)Authoritarian
D)Autocratic
Q4) Authoritarian leadership has all of the following characteristics except:
A)It typically involves the use of one-way communication from manager to subordinate.
B)There is a managerial tendency toward a lack of involvement with subordinates.
C)It is widely used by Theory Y managers.
D)It is often effective in handling a crisis.
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Chapter 14: Human Resource Selection and Development
Across Cultures
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Q1) Though politically controversial, outsourcing can save companies significant costs and is very profitable for firms that specialize in providing these services on a contract basis.
A)True
B)False
Q2) Traditionally, what was the only selection criterion MNCs relied on for overseas assignments?
A)Training
B)Technical competence
C)Previous experience
D)Education
Q3) For expatriates, a cost-of-living allowance is a payment for differences between the home country and the overseas assignment.
A)True
B)False
Q4) An ethnocentric MNC puts host-office people in charge of key international management positions.
A)True
B)False
Page 16
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