Cross-Cultural Management Exam Materials
Course Introduction
Cross-Cultural Management explores the challenges and opportunities of managing individuals and teams in diverse international environments. The course examines how cultural differences influence communication, leadership styles, motivation, decision-making, and conflict resolution in the workplace. Students will learn frameworks for understanding cultural dimensions, developing intercultural competence, and implementing strategies for effective collaboration across borders. Through case studies and real-world examples, the course prepares future managers to adapt to and leverage cultural diversity in global organizations.
Recommended Textbook
Multinational Management A strategic approach 6th Edition by John B. Cullen
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15 Chapters
739 Verified Questions
739 Flashcards
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Page 2
Chapter 1: Multinational Management in a Changing World
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Sample Questions
Q1) Discuss the characteristics of a next generation of multinational managers.How can you develop those characteristics through education and experience?
Answer: Answers will vary and should demonstrate how education and experience can help develop: a global mindset,emotional intelligence,a long-range perspective,the talent to motivate employees to excellence,negotiating skills,an understanding of national cultures,and a willingness to take overseas assignments.
Q2) Discuss how any company can become a multinational company.What are some of the options available to companies that allow them to use international markets and locations competitively?
Answer: Answers will vary.Students should mention that the world is becoming one interconnected economy,and companies can compete through a number of options including importing,exporting,and FDI.
Q3) . A global product or service is
A)Adapted for each country's unique needs.
B)A similar product or service for all customers throughout the world.
C)A product or service that requires bilingual customers.
D)Products developed for use outside the country.
Answer: B
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3
Chapter 2: Culture and Multinational Management
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Sample Questions
Q1) The achievement versus ascription dimension addresses
A)The extent to which an individual's life is involved with work.
B)The manner by which a society gives status.
C)The way a culture deals with the past, present, and future.
D)The belief people have in controlling their fate.
Answer: B
Q2) Seniority tends to dominate evaluation and promotion in
A)Short term oriented cultures.
B)Cultures high on uncertainty avoidance and low on individualism.
C)Ethnocentric cultures.
D)Doing rather than being cultures.
Answer: B
Q3) Describe some characteristics of cultures high on masculinity.Compare the management implications with cultures low on masculinity.
Answer: Answers will vary but should demonstrate that men dominate the management ranks in a highly masculine society.Men are expected to focus on long-term careers,while women may take jobs that are subordinate to their primary roles as family care-givers.
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4
Chapter 3: The Institutional Context of Multinational Management
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Sample Questions
Q1) The famous German Sociologist,Max Weber,argued that the Protestant work ethic
A)Led to the emergence of capitalism in Western Europe.
B)Led to the decline of capitalism in Western Europe.
C)Led to an acute distaste for the accumulation of wealth.
D)Led to the rise of socialism in Eastern Europe.
Answer: A
Q2) Compare and contrast pre-industrial,industrial and post-industrial societies.Discuss the implications for multinationals of any one of these three types of economies. Answer: Answer will vary but should demonstrate students' understanding that in a preindustrial society,agriculture dominates and shapes the economic environment.Religious norms and tradition are emphasized,and social mobility is discouraged.An industrial society tends to be characterized by the dominance of the manufacturing or secondary sector.Such societies reflect the prevalence of technological development that makes rapid economic growth possible.Industrial societies tend to require wider ranges of skills in their workforce.The postindustrial society emphasizes the service sector.The dominance of employment by the service sector leads to a drastic expansion of the role of formal education due to the need for highly trained workers with specialized skills.
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Chapter 4: Managing Ethical and Social Responsibility
Challenges in Multinational Companies
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Sample Questions
Q1) International business ethics
A)Present problems similar to domestic business ethics.
B)Pertain to the rules and values that determine actions that companies should follow when dealing with other companies.
C)Pertain to those unique ethical problems faced by managers conducting business across countries.
D)None of the above
Q2) Moral languages include all of the following EXCEPT
A)Virtue and vice.
B)Self-control.
C)Avoiding harm.
D)Being ethical.
Q3) The first duty of a multinational manager faced with a decision is
A)To consider whether the decision makes business sense.
B)To consider whether the decision meets the legal standard in the country.
C)To consider whether the decision is ethical.
D)To refer to the written codes of ethics.
Q4) Compare and contrast prescriptive codes of ethics with proscriptive codes.
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Q5) How do social institutions and culture affect the practice of business ethics in different countries?
Chapter 5: Strategic Management in the Multinational
Company: Content and Formulation
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Sample Questions
Q1) Capabilities that lead to competitive advantage must be
A)Valuable, rare, and easy to copy.
B)Fairly substitutable.
C)Valuable, rare, and hard to copy.
D)None of the above
Q2) Generic strategies
A)Occur when a company can outmatch its rivals in attracting and maintaining its customers.
B)Represent basic ways that domestic and multinational companies keep and achieve competitive advantage.
C)Are all based on finding ways to provide superior value to the customer.
D)None of the above
Q3) Upstream activities in the value chain are concerned,in part,with
A)The primary activities.
B)The support activities.
C)Input logistics.
D)After market service.
Q4) Describe the low cost strategy as compared to the differentiation strategy.
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Q5) Describe the SWOT analysis.Why is a SWOT analysis more complex for a multinational than for a domestic company?
Chapter 6: Multinational and Entry-Mode Strategies:
Content and Formulation
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Sample Questions
Q1) You work for a small company that has an innovative low-cost production method for laser disks that allow it to produce at very low cost.A Belgian firm approaches your CEO and offers to export your disks to Belgium for a commission.The CEO asks you to write a report detailing the risks and potential benefits of this deal.What will you include in your report and why
Q2) Foreign direct investment
A)Is an entry-mode strategy.
B)Means that a multinational owns, in part or in whole, an operation in another country.
C)Symbolizes the highest rate of internationalization.
D)All of the above
Q3) Major drawbacks of licensing include
A)The risk of losing the capital investment.
B)The risk of the local government changing international trade policies.
C)The loss of control and the possibility of creating a new competitor.
D)All of the above
Q4) What is political risk? Discuss some of the aspects of political risk assessment.How can multinationals use political risk assessment?
Q5) Describe the global-local dilemma.When is each solution most appropriate?
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Chapter 7: Small Businesses and International Entrepreneurship
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Q1) What are the advantages of a small business going international through incremental stages rather than as a global start-up?
Q2) An entrepreneur
A)Creates new ventures that seek profit and growth.
B)Is seldom the primary force behind a company's decision to go international.
C)Can accurately predict the risks and uncertainties of his/her ventures.
D)Faces less uncertainty than a multinational.
Q3) All of the following are true about small business CEOs EXCEPT
A)Opening new markets is often the personal responsibility of the CEO.
B)They want to take a break from the daily management of their businesses by going overseas.
C)New international ventures may threaten their family life.
D)Their attitudes towards internationalization is a major factor in international success.
Q4) International sales intensity represents
A)A significant size barrier to internationalization.
B)The amount of international sales as a proportion of total sales.
C)The amount of local sales as a proportion of international sales.
D)Is more relevant for larger businesses.
Q5) Why are small businesses important for most economies?
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Chapter 8: Organizational Design for Multinational Companies
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Sample Questions
Q1) Which of the following types of control system uses budgets,statistical reports,standard operating procedures,and centralized decision making to manage organizational processes?
A)Profit center
B)Bureaucratic control system
C)Decision-making control
D)Cultural control system
Q2) A permanent unit of the organization designed to focus the efforts of different subunits on particular problems is a
A)Task force.
B)Full-time integrator.
C)Liaison.
D)Team.
Q3) Knowledge that usually resides within employees and is dependent on the organization's culture and context is
A)Explicit knowledge.
B)Knowledge management.
C)Tacit knowledge.
D)None of the above
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Chapter 9: International Strategic Alliances: Management and Design
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Q1) When applied to a strategic alliance relationship,the concept of trust includes
A)Confidence that the partner will deliver.
B)Confidence that the partner will behave with good will.
C)Confidence that the partner will engage in fair exchange.
D)All of the above
Q2) Which management structure is popular in developing countries?
A)Dominant
B)Shared
C)Split
D)Rotating
Q3) Which of the following type of strategic alliances allows the multinational to combine manufacturing or assembly activities to achieve a profitable volume of activity?
A)Operations alliances
B)Output alliances
C)Upstream-downstream alliances
D)Marketing alliances
Q4) What are some of the common value chain links companies use to gain strategic benefits from alliances? Pick two of these links and describe some of the benefits partners gain from pursuing these links.
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Chapter 10: Multinational E-Commerce: Strategies and Structures
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Sample Questions
Q1) The major opportunities of e-commerce globalization include all of the following EXCEPT
A)Cost reduction.
B)Efficiencies.
C)Speed of access and convenience.
D)Access to new sources of financing.
Q2) Which of the following is not true regarding e-commerce?
A)Refers to the selling of goods and services over the Internet
B)Includes products that are delivered offline such as UPS shipping a book purchased through Amazon.com
C)Does not include goods and services delivered online, such as downloaded computer software
D)Includes goods and services delivered online, such as downloaded computer software
Q3) Southeast Asian countries represent opportunities for e-commerce growth due to A)Spanish language websites.
B)Membership in ASEAN.
C)Global demand.
D)Internet economy.
Q4) Discuss some of the basic steps to building a successful e-commerce strategy.
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Chapter 11: International Human Resource Management
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Q1) Companies with a global HRM orientation
A)Usually provide significant extra pay for expatriate assignments.
B)Evaluate their managers by headquarters' country standards.
C)Focus primarily on language training as preparation for expatriate assignments.
D)Use similar pay and benefit packages for all international assignments.
Q2) The use of worldwide job evaluations,performance appraisals methods,and salary scales to determine pay is the
A)The global pay system.
B)The balance sheet approach.
C)The multi-local pay system.
D)The headquarters-based system.
Q3) Suggestions to improve expatriate performance appraisals include
A)Using the same standards as the home country to improve fairness.
B)Giving up on performance appraisal since they often fail in the international setting.
C)Evaluation only at the end of the assignment since it takes a long time to learn about another culture.
D)Using multiple evaluators with varying periods of evaluation.
Q4) Identify the components of HRM and describe how they differ for IHRM.
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Page 13
Chapter 12: Hrm in the Local Context: Knowing When and How to Adapt
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Q1) The practice in Germany,whereby management surrenders a traditionally reserved share of control to workers refers to
A)Co-determination.
B)Co-selection.
C)Veto power.
D)Joint planning.
Q2) Contrast the different types of unions and discuss the challenges each type may pose to a multinational manager.
Q3) Patterns of labor relations in countries are affected by A)Cultural factors.
B)Historical factors such as the level of technology development.
C)Ideological reasons.
D)All of the above
Q4) A study of compensation practices in ten countries revealed that A)Pay incentives are important.
B)Pay should be contingent on group performance.
C)Incentives should be significant amount of pay.
D)All the above are true
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Q5) How is feedback on performance given in collectivist societies,especially for managers?
Chapter 13: International Negotiation and Cross-Cultural Communication
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Sample Questions
Q1) All of the following are true about the final agreement EXCEPT
A)The final agreement is the signed contract, agreeable to all sides.
B)Successful negotiations do not necessarily result in the final agreement.
C)The final agreement must be consistent with the chosen legal system or systems.
D)All of the above are true.
Q2) Negotiators who make an agreement and then reveal that it must be approved by senior managers or the government is an example of which type of dirty trick?
A)Escalating authority
B)Good guy, bad guy routine
C)You are wealthy and we are poor
D)Old friends
Q3) Discuss the steps in the negotiation process.Which step is at the heart of the process and why?
Q4) Describe several forms of nonverbal communication.If you were a negotiator,how might you prepare for differences in these forms?
Q5) Identify some cultural differences in body movements (kinesics).How might these influence a negotiation session?
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Chapter 14: Motivation in Multinational Companies
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Sample Questions
Q1) Some of the detrimental effects of social loafing can be reduced if
A)Individuals are held responsible for performance.
B)Groups are held responsible for performance.
C)The group leader is held responsible for performance.
D)None of the above
Q2) Need theories of motivation are based on the assumption that
A)Motivation is a function of the individual's beliefs of what happens if one works hard.
B)Motivation is a result of the outcomes of one's past behaviors.
C)Motivation is a function of why people work.
D)People can satisfy basic human needs in the work setting.
Q3) Motivation refers to
A)A feeling of deficit or lacking.
B)Goal-directed behaviors to satisfy human needs.
C)The use of work to satisfy many needs.
D)Consequences of a person's behavior that discourages the behavior.
Q4) Compare and contrast the Job Diagnostics Design Approach to the European Sociotechnical Systems Approach to job design.
Q5) Discuss equity theory.What are the implications for multinationals?
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Chapter 15: Leadership and Management Behavior in Multinational Companies
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Q1) The National Context Contingency Model of Leadership
A)Assumes that successful leaders need not modify their behaviors or develop particular leadership traits to succeed in different nations.
B)Includes two contingencies: the characteristics of subordinates and the nature of the work setting.
C)Includes factors related to the national culture and social institutions.
D)Only B and C are correct
Q2) Building support for ideas and networking and using friendships involve the use of which influence tactics?
A)Assertiveness
B)Friendliness
C)Sanctioning
D)Coalitions
Q3) Discuss whether transformational leadership qualities are culture free.That is,are transformational leaders similar regardless of cultural background or are there different types of transformational leaders for each cultural group?
Q4) What is the fundamental attribution error? What are some implications for leadership in multinationals?
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