Cross-Cultural Management Final Exam
Questions
Course Introduction
Cross-Cultural Management explores the challenges and opportunities associated with managing and working in organizations that operate across diverse cultural contexts. The course examines the impact of cultural differences on communication, decision-making, leadership, negotiation, and team dynamics. Students will learn frameworks for understanding cultural dimensions, analyze real-world cases, and develop practical skills for effective cross-cultural interaction. Emphasis is placed on building cultural intelligence, fostering inclusive work environments, and applying strategies to address cultural conflicts and leverage diversity for organizational success in a globalized business environment.
Recommended Textbook
International Marketing An Asia Pacific Perspective 7th Edition by Richard Fletcher
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Page 2
Chapter 1: Rationale for International Marketing
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Sample Questions
Q1) The theory of comparative advantage states that a nation can gain from international trade ONLY if it:
A) supplies products that other nations don't produce.
B) has a disadvantage against other nations in the production of particular goods.
C) produces the best of everything.
D) exports products at a lower cost than other nations.
E) none of the above.
Answer: E
Q2) In 2015 the top country in terms of internet access was China.
A)True
B)False
Answer: True
Q3) Advances in communications technology have revolutionised international marketing activities.
A)True
B)False
Answer: True
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Chapter 2: Avoiding the Pitfalls of the International Political and Legal Environment
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Q1) Outline the key political and legal issues that an international marketer would have to take into consideration when developing marketing mixes for a range of international markets.
Answer: International marketers would need to be aware of the general political situation/political risk and specific requirements of each host country government and legal system, as these will vary by country, even those with the same legal system. These laws and requirements affect each aspect of the marketing mix. For example, each country will have specific standards (e.g. safety) for product compliance and laws applying to packaging. Pricing strategies have to comply with each country's law on issues such as resale price maintenance or dumping. Distribution channels and the activities of channel members are subject to different laws and constraints in each country (e.g. requirement to use state-approved transport services). Promotion tends to be highly regulated in many countries (e.g. deceptive and misleading advertising, advertising to children). An international marketer would need to be aware of the laws and regulations that apply to each aspect of the marketing mix in each country in which they operate to ensure compliance.
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Page 4
Chapter 4: Catering for the Social and Cultural
Environment of International Marketing
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Sample Questions
Q1) According to a survey conducted in 1980 by Hofstede, there are four underlying dimensions of culture, which are:
A) power distance, uncertainty avoidance, individualism/collectivism and masculine/feminine.
B) power distance, long-term/short-term orientation, high-context/low-context and religious orientation.
C) power distance, uncertainty avoidance, high context/low context and short-term/long-term orientation.
D) power distance, religious orientation, high context/low context and individualism/collectivism.
E) power distance, high-context/low-context, individualism/collectivism and masculine/ feminine.
Q2) In terms of the impact of culture on international marketing, which of the following statements is NOT correct?
A) Knowledge of another culture is interpretative.
B) Knowledge of another culture is factual.
C) Cultural sensitivity should be viewed subjectively.
D) Cultural sensitivity means being aware of the different culture.
E) Social conventions reflect the culture.
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Chapter 5: Technology Change and International Marketing
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Sample Questions
Q1) Cloud computing enables businesses to:
A) purchase virtual hardware and software.
B) scale their commitment quickly as operations require.
C) interact with their databases from any location.
D) options A, B and C.
E) options B and C only.
Q2) The 'last mile' problem for a firm can be solved by:
A) lowering fuel costs.
B) increasing promotion spending.
C) employing navigation software.
D) lowering the price of goods sold.
E) outsourcing deliveries.
Q3) Mobile phones have moved from being specific communication devices to providing a wide range of services. This movement can be described as:
A) information technology services.
B) a new information-based infrastructure.
C) robotic flexible manufacturing systems.
D) consumer and professional electronics.
E) options C and D
Page 6
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Chapter 6: Contemporary Environmental Variables in International Marketing
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Q1) Losses by airlines because of the decision of many Australians to cancel holidays to Bali in light of concerns about terrorism is an example of a ________ impact of terrorism.
A) primary
B) response-generated
C) secondary
D) short-term
E) longer-term
Q2) What threats and opportunities does terrorism pose to the development of the global economy?
Q3) Terrorism has a negative impact on the economic outlook and social attitudes of people globally. The impact of terrorism according to Enderwick (2001) can be categorised as:
A) primary impacts.
B) response-generated impacts.
C) uncertainty rating impacts.
D) options A, B and C.
E) options A and B only.
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Chapter 7: Research in International Markets
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Sample Questions
Q1) The techniques that may be employed to overcome any problems with translation equivalence include:
A) computer-based translation systems.
B) Delphi studies.
C) back translation.
D) parallel blind translation.
E) options C and D only.
Q2) Internet users are a representative sample of the population at large.
A)True
B)False
Q3) Managing international research requires two key elements: selecting a market research agency and coordinating the market research.
A)True
B)False
Q4) Information for how to approach the market includes:
A) monitoring the success of competitors.
B) collating information on the business environment.
C) determining sales potential.
D) measuring market growth.
E) testing all elements of the marketing mix.
Page 8
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Chapter 8: International Market Selection and Entry
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Q1) When a group of organisations get together to pool information about resources and common features this is referred to as a:
A) consortia.
B) joint venture.
C) greenfield operation.
D) strategic alliance.
E) all of the above.
Q2) Which of the following is NOT a theoretical explanation underlying strategic alliances?
A) resource dependence
B) transaction costs
C) strategic behaviour
D) relationship marketing
E) none of the above
Q3) Domestic buyers that buy on behalf of firms in overseas markets are known as:
A) export merchants.
B) brokers.
C) export commission houses.
D) manufacturers' export agents.
E) confirming houses.
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Chapter 9: International Competitive Strategy
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Sample Questions
Q1) Better access to employees and suppliers together with lower transaction costs can be provided through the use of clusters.
A)True
B)False
Q2) Companies cannot successfully pursue more than one value discipline at the same time.
A)True
B)False
Q3) Factor conditions and firm strategy, structure and rivalry are both components of the generalised double diamond.
A)True
B)False
Q4) Competitive advantage is the advantage gained over competitors by offering:
A) wider distribution.
B) greater perceived value.
C) superior products.
D) online advertising and communication.
E) all of the above.
Q5) Explain the STP approach and list its six steps.
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Chapter 10: Internationalization, Relationships and Networks
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Q1) Guanxi is manifested in:
A)Profit orientation
B)Human obligation
C)Transactional relationships
D)Financial obligation
E)Options A and C only
Q2) Diaspora is an important feature in business environments because:
A) the path to entering the country of origin may be through the diaspora in another country rather than on a direct basis.
B) it depends on social capital, which creates value and facilitates an individual's commercial activities when crossing national boundaries.
C) interpersonal networks overlap the business networks.
D) the diaspora in one country can be used as agents to get the home products introduced and marketed in another country.
E) all of the above.
Q3) Explain the concept of guanxi and why it is important for the development of international marketing relations.
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Page 11
Chapter 11: Globalization
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Q1) Which of the following are risks that must be weighed by the company before entering a foreign market?
A)Can it offer competitively attractive products?
B)Can the company understand the preference and buyer behaviour of consumers in another country?
C)Will it be able to adapt to another country's business culture?
D)Will it be able to deal effectively with foreign nationals?
E)All of the above
Q2) The decision to adopt a global strategy will impact on the structure of the organisation.
A)True
B)False
Q3) Outline the steps that need to be taken in developing a global strategy. Take a product or company of your choice and show how these steps are implemented in practice.
Q4) Sport is now the most globalised legal business in the world.
A)True
B)False
Q5) Discuss the relationship between globalism and glocalisation.
Q6) Discuss the drivers and consequences of market globalisation.
Page 12
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Chapter 12: Planning for Effective International Marketing
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Sample Questions
Q1) In international markets, marketers can follow several positioning strategies. These can include positioning:
A) on specific product attributes.
B) on the basis of product performance.
C) according to product usage.
D) on different classes of product users.
E) all of the above.
Q2) The focus of strategic planning in the future will be on:
A) political changes in developing countries.
B) internally focused and historically based systems.
C) balancing and matching internal and external drivers.
D) technological advances.
E) rigid plans that provide one clear direction for the organisation.
Q3) Scenario planning only applies in domestic markets.
A)True
B)False
Q4) Country of origin can be an important positioning attribute in international marketing.
A)True
B)False
Page 13
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Chapter 13: Modifying Products for International Markets
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Q1) A brand may be judged global by all of the following measures EXCEPT it:
A) focuses on the product category.
B) is disassociated from country of origin effects.
C) reflects a consist positioning worldwide.
D) demonstrates a balanced country-market coverage.
E) meets a universal consumer need.
Q2) Gatekeepers are the individuals within a buying group that negotiate the terms of the sales.
A)True
B)False
Q3) Designing ________ products is very much a concern of ________ companies.
A) global; international
B) global; transnational
C) technological; global
D) industrial; transnational
E) international; global
Q4) Discuss the basic stages in the international product life cycle.
Q5) Discuss the factors that might lead a company to modify its products for international markets. Illustrate with examples.
Page 14
Q6) Discuss how a firm might leverage it capabilities in an international market.
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Chapter 14: International Pricing for Profit
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Q1) Market skimming pricing is where products are offered at a high price in an effort to rapidly recover costs.
A)True
B)False
Q2) Culture can play a role in the setting of a firm's product price in an overseas market.
A)True
B)False
Q3) Which of the following is NOT a component of price setting in the international market environment?
A) portfolio mix factors
B) exchange rates
C) inflation
D) interest rates
E) employment
Q4) How important is preliminary planning in the setting of an international price structure? What are the most important factors that need to be taken into account by the organisation?
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Page 15
Chapter 15: Promotion in International Marketing
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Q1) In crisis situations the best type of promotional approach to take is to increase the use of advertising in order to get the firm's point of view across to the public.
A)True
B)False
Q2) International marketing communications should not only take the target country's needs into consideration but should also ensure that the message is appropriate to adjacent countries particularly in Europe.
A)True
B)False
Q3) In the international communication process, a television commercial, a telephone directory and a billboard can all be classified as a form of:
A)Medium through which a message is conveyed
B)Message sender
C)Linked transmitter
D)Message encoder
E)None of the above
Q4) Discuss how social media has changed the way firms interact with their international customers.
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Page 16
Chapter 16: Effective International Distribution
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Sample Questions
Q1) Two aspects of distribution standardisation are:
A)Process and program
B)Process and outcome
C)Process and channel
D)Process and structure
E)Process and element
Q2) In many Asian developing countries most retail takes place through:
A)Wholesalers
B)Small shops
C)Department stores
D)Roadside stalls
E)Options B and D only
Q3) Retailing practices are influenced by:
A)Level of education
B)The number of retailers in a market
C)Stage of economic development
D)All of the above
E)Options A and C only
Q4) Using the comparison of major international transportation modes, evaluate its use for determining transportation of high-price goods.
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Chapter 17: Marketing Services and Projects Overseas
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Sample Questions
Q1) Which of the following could be identified as a reason for the recent increase in the growth of services business in the developed nations?
A)Greater affluence and increased leisure time
B)Greater life expectancy
C)Fewer women in the workforce
D)All of the above
E)Options A and B only
Q2) In the marketing and business management services sub-sector Australia's exports almost always exceed imports
A)True
B)False
Q3) One of the weaknesses of Australian firms, when considering their positioning for international projects, is that they are seen as a threat to other businesses.
A)True
B)False
Q4) Explain the advantages of a build and operate scheme and why a consortium would want to undertake such a project.
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Chapter 18: International Marketing in the Decade Ahead
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Q1) Laws governing intellectual property protection are lacking and unenforced in developing countries.
A)True
B)False
Q2) Which of the following is NOT a common economic constraint in emerging markets?
A)Disproportionate income spread
B)Declines in terms of trade
C)Inflation and hyper-inflation
D)Foreign currency shortages
E)Abundance of bureaucracy and lack of transparency
Q3) A key form of migration that takes place in emerging markets is regional and international migration, which involves skilled labour migrating to the developed countries.
A)True
B)False
Q4) In emerging markets, individual consumer behaviour is influenced by lack of participation in social networks so that consumers conform to the group norms.
A)True
B)False
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