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Cross-Cultural Management explores how cultural differences impact organizational behavior, communication, leadership, and decision-making in global business environments. The course examines theories and frameworks related to culture, such as Hofstedes dimensions and the GLOBE study, and applies them to real-world management scenarios. Students learn strategies for working effectively across cultures, mitigating misunderstandings, managing diverse teams, and fostering inclusive workplaces. Through case studies, discussions, and practical exercises, the course prepares students to navigate the complexities of managing in multicultural settings and to develop the intercultural competence vital for successful global leadership.
Recommended Textbook
International Management Culture Strategy and Behavior 8th Edition by Fred Luthans
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Q1) The NAFTA agreement and the DR-CAFTA agreement are examples of:
A)Defunct bilateral agreements
B)Regional trade agreements
C)Plurilateral agreements
D)Proposed bilateral agreements
Answer: B
Q2) Identify the statement which is not true of Mexico.
A)When it joined NAFTA, Mexico was on the verge of becoming the major economic power in Latin America
B)Mexico has free-trade agreements with more than 50 countries
C)Mexico's trade with Asia is declining
D)Mexico's government are probusiness
Answer: C
Q3) According to the projections for 2010, which of the following countries has the best commercial infrastructure?
A)China
B)Hong Kong
C)India
Answer: B
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Q1) Identify the correct statement on cellular infrastructure.
A)It is expensive to install
B)It is quick and relatively inexpensive to install
C)It is relatively inexpensive to install but takes time
D)It cannot be installed easily and cheaply in rural areas
Answer: B
Q2) Japanese companies are aware that their dependency on the world market for many goods and services is negatively impacted by _____, resulting in local consumers paying the price.
A)The balance of payments
B)Bureaucratization
C)Trade imbalances
D)Financial exchange
Answer: B
Q3) International law includes the following types of jurisdictional principles:
A)Nationality, territoriality and protective
B)Territoriality, sovereignty and nationality
C)Good citizenship, territoriality and protective
D)Protective, comity and sovereignty
Answer: A
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Q1) John Stuart Mill and Jeremy Bentham are associated with which of the following?
A)Aristotelian virtue ethics
B)Kantian philosophical traditions
C)Utilitarianism
D)Eastern philosophy
Answer: C
Q2) The _____ specifies the distribution of rights and responsibilities among different participants in the 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
Q3) The transfer of the labor force overseas creates
A)An interesting dynamic in the scope of ethics and corporate responsibility
B)A general ambiance of nondiscriminatory practices
C)An ideal environment for women to work in
D)Equal employment opportunities for both men and women
Answer: A
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Q1) Power distance is "the extent to which less powerful members of institutions and organizations accept that power is distributed unequally".
A)True
B)False
Q2) Japanese firms tend to have a culture of deference which is supported by all of the following except
A)the unwillingness of workers to report problems to their superiors
B)the unwillingness of workers to question their superiors
C)the unwillingness of workers to challenge what has been decided
D)the unwillingness of workers to be loyal to the firm
Q3) According to the text, the highest cultural priority (or value) in the U.S.is considered as:
A)Family security
B)Belonging
C)Freedom
D)Cooperation
Q4) A major dimension in the study of culture is values.
A)True
B)False
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Q1) Malaysia has what is called a _____.
A)Moderate-context culture
B)Low-context culture
C)Variable-context culture
D)High-context culture
Q2) In Japan, compensation levels are determined by using skill, ability and performance.
A)True
B)False
Q3) Which of the following countries prefer advertising that is factual and rational?
A)India
B)China
C)Germany
D)France
Q4) A company with a geocentric predisposition tries to integrate a global systems approach to decision making.
A)True
B)False
Q5) Describe the difference between parochialism and simplification.
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Q1) To ensure good communication in global teams, managers should do all of the following except
A)Hold an initial meeting in which all members introduce themselves and describe their jobs
B)Hold regular meetings throughout the project to ensure everyone is "on the same page"
C)Avoid the use of email, and use only video conferencing of telephone communication to avoid misunderstandings
D)Put the details of the project in writing
Q2) Organizational climate is reflected by:
A)The degree of cooperation between management and employees
B)Common language, terminology and rituals
C)High product and service quality
D)The way participants interact with each other
Q3) It has been found that when cultural comparisons were made between different subsidiaries of an MNC, nearly identical cultures typically existed within each one.
A)True
B)False
Q4) What is organizational culture and what are some of its major characteristics?
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Q1) In low-context societies, messages are often highly coded and implicit.
A)True
B)False
Q2) 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 the 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
Q3) When negotiators make a definitive decision before engaging in discussion, they may soon find out that the terms never even surface.
A)True
B)False
Q4) What is communication? What is the key to effective communication?
Q5) Communicating through the use of written means is referred to as haptics.
A)True
B)False
Q6) Communication is the process of transferring meanings from sender to receiver.
A)True
B)False

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Q1) What is the "BOP" and why is this strategy challenging to implement?
Q2) All of the following act as disincentives for MNCs except:
A)Restrictions on profit repatriation
B)Controls on the transfer of technology
C)Export maximums for generating foreign currency
D)Limits on local market growth
Q3) The approach to strategic formulation and implementation utilizing strategies of TQM to meet or exceed customers' expectations and continuously improve products and/or services is referred to as the:
A)Value-added imperative
B)Quality imperative
C)Political imperative
D)Economic imperative
Q4) Identify the four basic strategies that MNCs use and the situations in which they are used.
Q5) When the need for national responsiveness is low and the need for global integration is high, a global strategy is appropriate.
A)True
B)False
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Q1) The primary reason for the use of licensing agreements is a desire by the MNC for total control over its products in overseas markets.
A)True
B)False
Q2) A structure under which global operations are organized on a geographic rather than a product orientation is referred to as a global area structure.
A)True
B)False
Q3) The nonequity venture:
A)Is characterized by one group merely providing a service for another
B)Provides the most benefits when the need for product specification or differentiation is high
C)Involves a financial investment by the MNC in a business enterprise with a local partner
D)Organizes worldwide operations based primarily on function and secondarily on product
Q4) Explain the transnational network structure.What are its three subcomponents?
Q5) Explain alliances and joint ventures.
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Q1) The following are listed as techniques for responding to political risks except:
A)Relative bargaining power analysis
B)Realistic bargaining power analysis
C)Integrative techniques
D)Proactive political strategies
Q2) The special nature of foreign direct investment is not related to:
A)Sector
B)Technology
C)Ownership
D)Operations
Q3) All of the following are examples of integrative techniques except:
A)Developing good relations with the host government and other local political parties
B)Doing as little local manufacturing as possible and conducting all research and development outside the country
C)Producing as much of the product locally as possible with the use of in-country suppliers and subcontractors, thus making it a "domestic" product
D)Developing effective labor-management relations
Q4) What are some of the advantages of international strategic alliances?
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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) Discuss the decision-making philosophies and practices of the French and Danish managers.
Q3) Controls that are generally used by MNCs to monitor performance on a monthly basis are:
A)Direct
B)Indirect
C)External
D)Internal
Q4) In domestic situations, when competition increases, management will:
A)Integrate product or service lines
B)Centralize authority
C)Decentralize authority
D)Diversify product and service lines
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Q1) In an Israeli kibbutz, the following hygiene factor was regarded as a source of satisfaction rather than dissatisfaction:
A)Salary
B)Working conditions
C)Interpersonal relations
D)Technical supervision
Q2) To motivate employees, especially in foreign countries with high individualism companies tend to offer:
A)Non-financial perks
B)Telecommunications
C)Local area networks
D)Financial incentives
Q3) The two-factor theory of motivation holds that two sets of factors influence job satisfaction.These are:
A)Inducement, subsistence
B)Advancement, responsibility
C)Hygiene, motivators
D)Recognition, rewards
Q4) What are sociotechnical job designs?
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Q1) Transformational leaders are visionary agents with a sense of mission who are capable of motivating their followers to accept new goals and new ways of doing things.
A)True
B)False
Q2) Which of the following leadership styles uses both a work-centered and people-centered approach?
A)Participative
B)Paternalistic
C)Autocratic
D)Authoritarian
Q3) Theory Z leadership combines Japanese and U.S.assumptions and approaches to leadership.
A)True
B)False
Q4) Theory Z leadership is associated with the work of:
A)Robert Blake
B)William Ouchi
C)Sheila Puffer
D)Douglas McGregor
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Q1) Factors used to choose personnel for international assignments are referred to as:
A)Global placement criteria
B)International selection criteria
C)Global selection heuristics
D)International recruitment and selection heuristics
Q2) Expatriate managers who are citizens of the country where the multinational corporate is headquartered are referred to as:
A)Host-country nationals
B)Home-country nationals
C)Inpatriates
D)Third-country nationals
Q3) This type of MNC seeks to integrate diverse regions of the world through a global approach to decision making.
A)Polycentric
B)Ethnocentric
C)Geocentric
D)Regiocentric
Q4) Discuss the various approaches that can be used to formulate a compensation package.
Page 16
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