Cross-Cultural Management Exam Practice Tests
Course Introduction
Cross-Cultural Management explores the complexities and challenges of managing individuals and teams in an international and multicultural environment. The course examines the impact of cultural differences on management practices, communication, leadership, negotiation, decision-making, and organizational behavior. Through case studies, interactive discussions, and real-world examples, students develop an understanding of cultural dimensions, adaptation strategies, and effective approaches for fostering collaboration and resolving conflicts across cultures. By the end of the course, students will be equipped with practical skills and cultural intelligence essential for leading diverse teams and enhancing organizational effectiveness in a globalized business landscape.
Recommended Textbook
International Management Culture Strategy and Behavior 10th Edition by Fred Luthans
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Page 2
Chapter 1: Globalization and International Linkages
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Sample Questions
Q1) A major development in South America is:
A) the implementation of a single currency and a regional central bank.
B) the growth of intercountry trade, spurred on by the progress toward free-market policies.
C) the privatization of traditionally nationalized industries.
D) the elimination of all trade barriers among member countries.
Answer: B
Q2) U.S.firms maintain particularly dominant global positions in all of the following industries except:
A) telecommunications.
B) biotechnology.
C) media.
D) textiles.
Answer: D
Q3) According to the World Trade Organization,in 2014 merchandise exports:
A) reached a record high.
B) declined for the first time since 1983.
C) remained fairly consistent.
D) decreased by almost 50 percent.
Answer: A
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Chapter 2: The Political, Legal, and Technological Environment
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Sample Questions
Q1) The _____ holds that there must be mutual respect for the laws,institutions,and the government of other countries in the matter of jurisdiction over their own citizens.
A) doctrine of protectionism
B) doctrine of civility
C) doctrine of mutual understanding
D) doctrine of comity
Answer: D
Q2) The most important dimension of the technological environment facing international management today is _____.
A) telecommunications
B) transportation
C) agricultural mechanization
D) improved service technologies
Answer: D
Q3) Nationalization is an ideal in and of itself whereby an individual is completely loyal to his or her nation.
A)True
B)False
Answer: False
Page 4
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Chapter 3: Ethics, Social Responsibility, and Sustainability
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Sample Questions
Q1) Unlike Western perspectives,Eastern perspectives _____.
A) typically hold that people are an intrinsic and inseparable part of the universe
B) provide an account of what character traits contribute to pursuing and realizing the good in concrete ways
C) are based on a logic similar to an economic calculation of utility or cost-benefit
D) emphasize the greatest happiness principle as an individual's moral standard
Answer: A
Q2) Many NGOs recognize that MNCs fail to adhere to high standards of social and environmental responsibility in host countries' markets.
A)True
B)False
Answer: False
Q3) The existence of equal opportunity in French and German law guarantees that equal opportunity initiatives will be implemented.
A)True
B)False
Answer: False
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5
Chapter 4: The Meanings and Dimensions of Culture
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Sample Questions
Q1) In the context of the cultural impact on international management,list some specific examples where the culture of a society can directly affect management approaches.
Q2) In the context of the values in transition,China is moving away from a collectivist culture.
A)True
B)False
Q3) In the context of Hofstede's original four dimensions,organizations in high-power-distance countries will tend to be centralized and have tall organization structures.
A)True
B)False
Q4) According to the priorities of cultural values of the United States,Japan,and Arab countries,the most important cultural value in the United States is _____.
A) family security
B) belonging
C) freedom
D) cooperation
Q5) Define culture and list its characteristics as agreed by most scholars.
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Chapter 5: Managing Across Cultures
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Sample Questions
Q1) A(n)_____ predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis.
A) geocentric
B) polycentric
C) ethnocentric
D) regiocentric
Q2) A partially completed contingency matrix for international human resource management shows that recruitment and selection processes in Japan should_____.
A) encourage use of sophisticated selection procedures based on recent public policy shifts
B) use expatriates sparingly and recruit home country nationals at U.S. colleges
C) obtain skilled labor from government subsidized apprenticeship program
D) develop trusting relationship with recruit
Q3) A company with a(n)_____ predisposition tries to integrate a global systems approach to decision making.
A) ethnocentric
B) polycentric
C) geocentric
D) regiocentric
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Page 7
Chapter 6: Organizational Cultures and Diversity
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Sample Questions
Q1) A team of employees looks into the benefits and shortcomings of setting up operations in the country of Bodonia.This team consists of a group of retailers from the country of Denebland and an attorney from the country of Altair.This team of employees exemplifies a _____.
A) homogeneous group
B) token group
C) multicultural group
D) bicultural group
Q2) _____ is a pattern of basic assumptions that is developed by a group as it learns to cope with problems of external adaptation and internal integration and is taught to new members as the correct way to perceive,think,and feel in relation to these problems.
A) Organizational culture
B) Organizational learning
C) Organizational change
D) Organizational structure
Q3) What is organizational culture,and what are some of its major characteristics?
Q4) Discuss findings of Hofstede and Andre Laurent about the relationship between national and organizational culture.
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Chapter 7: Cross-Cultural Communication and Negotiation
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Q1) A(n)_____ style of communication focuses on the speaker and the reduction of barriers between the parties.
A) personal
B) contextual
C) affective
D) instrumental
Q2) In the context of negotiations,_____ starts with the negotiators identifying the objectives they would like to attain.
A) planning
B) interpersonal relationship building
C) exchanging task-related information
D) persuasion
Q3) Which of the following styles of communication focuses on precision and the use of the right amount of words to convey the message?
A) Flexible
B) Succinct
C) Elaborate
D) Exacting
Q4) How does culture impact communication?
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Chapter 8: Strategy Formulation and Implementation
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Q1) What is the base of the pyramid (BOP),and why is this strategy challenging to implement?
Q2) A worldwide strategy based on cost leadership,differentiation,and segmentation is referred to as the _____ strategy.
A) economic imperative
B) political imperative
C) quality imperative
D) administrative coordination
Q3) Which of the following statements is true of strategic management?
A) Middle management is responsible for setting the strategy in most organizations.
B) All levels of management are imperative to the strategic implementation process.
C) Formulating an organization's vision statement is the core motive of strategic management.
D) As companies go international, the need for strategic management decreases.
Q4) Citibank is an example of a company that finds operating in China to be too risky.
A)True
B)False
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Chapter 9: Entry Strategies and Organizational Structures
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Sample Questions
Q1) Which of the following is an advantage of a mixed organization structure?
A) As the matrix design's complexity increases, coordinating the personnel and getting everyone to work toward common goals often become difficult.
B) It allows an organization to create the specific type of design that best meets its needs.
C) Too many groups go their own way.
D) Coordination of manufacturing and marketing often becomes difficult.
Q2) What is franchising? Explain with examples how it can result in a highly profitable business.
Q3) One of the major drawbacks of a global product division structure is that it disallows line and staff managers within the division to gain expertise in the technical and marketing aspects of the products assigned to them.
A)True
B)False
Q4) Specialization is the use of defined structures and systems in decision making,communicating,and controlling.
A)True
B)False
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11
Chapter 10: Managing Political Risk, Government Relations, and Alliances
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Sample Questions
Q1) What is terrorism? Explain the various types of terrorism.
Q2) China's decision regarding restrictions on foreign exchange transactions is a _____ political risk because it affects all multinational companies.
A) micro
B) standard
C) macro
D) multidimensional
Q3) When host governments do not require alliances as a condition for entry,many multinational companies:
A) are advised not to voluntarily pursue alliances, as they tend to be problematic.
B) are usually indifferent about establishing alliances.
C) find that having an alliance is advantageous to their entry and expansion.
D) are likely to consider alliances, except in emerging markets and highly regulated industries.
Q4) In some instances,it is not clear whether macro or micro political risk is at work. A)True B)False
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Chapter 11: Management Decision and Control
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Sample Questions
Q1) Which of the following is a factor that influences centralization of decision making in subsidiary operations?
A) Heterogeneous product lines
B) High level of product diversification
C) Large geographic distance between home office and subsidiary
D) High degree of interdependence between units
Q2) An organizational strategy and the accompanying techniques that result in the delivery of high-quality products or services to customers is referred to as _____.
A) total quality management
B) just-in-time management
C) reengineering
D) ISO 9000
Q3) In comparing the control mechanisms used by U.S.and European firms,it has been found that U.S.firms make greater use of _____ control,while European firms rely more heavily on _____ control.
A) output; behavioral
B) bureaucratic; participative
C) behavioral; output
D) participative; bureaucratic
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Page 13
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) _____ 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
Q3) Content-oriented theories tend to focus on individual behavior in specific settings and are more sophisticated than process theories.
A)True
B)False
Q4) Abraham Maslow postulated that everyone has six basic needs.
A)True
B)False
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Chapter 13: Leadership Across Cultures
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Sample Questions
Q1) Discuss Theory X,Theory Y,and Theory Z.
Q2) U.S.managers believe that to motivate workers,it is necessary to satisfy their:
A) higher-order needs.
B) safety needs.
C) lower-order needs.
D) physiological needs.
Q3) Identify the style of leadership that has been widely espoused in the United States,England,and other Anglo countries.
A) Paternalistic
B) Transformational
C) Transactional
D) Participative
Q4) Identify the type of leaders who motivate employees by consulting them,encouraging joint decisions,or delegating responsibilities.
A) Participative
B) Paternalistic
C) Transactional
D) Transformational
Q5) What are the different types of leadership styles?
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Chapter 14: Human Resource Selection and Development
Across Cultures
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Sample Questions
Q1) Identify and explain the different sources that multinational corporations can use in their recruiting and selection procedures.
Q2) All of the following are correct with regard to the impact of age,experience,and education on expatriate managers except:
A) there is universal agreement that degrees in marketing or engineering are the most desirable for expatriate managers.
B) most multinational corporations (MNCs) strive for a balance between age and experience.
C) many companies consider an academic degree, preferably a graduate degree, to be of critical importance to an international executive.
D) there is evidence that younger managers are more eager for international assignments than older managers.
Q3) Describe what is meant by the term training.What factors influence a company's approach to training?
Q4) Discuss the various approaches that can be used to formulate a compensation package.
Q5) What is a cultural assimilator? What do cultural assimilators try to accomplish?
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