Cross-Cultural Management Pre-Test Questions
Course Introduction
Cross-Cultural Management explores the complexities of managing in a globalized business environment where diverse cultures intersect. This course examines the influence of culture on organizational behavior, communication, leadership styles, human resource practices, and conflict resolution. Students will analyze theories and frameworks for understanding cultural differences, develop skills to adapt management strategies across borders, and evaluate case studies that illustrate real-world challenges and best practices. By fostering cultural awareness and sensitivity, the course prepares future managers to navigate and leverage diversity for organizational success in international settings.
Recommended Textbook
Global Business Today 7th Edition by
Charles W. L. Hill
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16 Chapters
2381 Verified Questions
2381 Flashcards
Source URL: https://quizplus.com/study-set/3022
Page 2
Chapter 1: Globalization
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151 Verified Questions
151 Flashcards
Source URL: https://quizplus.com/quiz/60083
Sample Questions
Q1) For which of the following countries did the share of the total stock decline between 1980 and 2008?
A)Japan
B)The United States
C)France
D)China
Answer: B
Q2) Due to the changing economic geography,most of tomorrow's economic opportunities may be found in:
A)the rich industrialized nations like Great Britain and Germany.
B)African countries like Somalia and Sudan.
C)Australia and the Scandinavian countries.
D)the developing nations of the worlD.
Answer: D
Q3) A company has to be a major multinational corporation to facilitate,and benefit from,the globalization of markets.
A)True
B)False
Answer: False
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Page 3
Chapter 2: National Differences in Political Economy
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154 Verified Questions
154 Flashcards
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Sample Questions
Q1) When firms do not wish to accept the rules of the CIGS,they usually rely on _____ to settle contract disputes.
A)UN involvement
B)arbitration
C)local codes
D)U.S.law
Answer: B
Q2) Five of the fastest-growing economies of the past 30 years-China,South Korea,Taiwan,Singapore,and Hong Kong-had one thing in common at the start of their economic growth:
A)undemocratic governments.
B)Communist regimes.
C)colonial masters.
D)universal suffrage.
Answer: A
Q3) A copyright grants the inventor of a new product or process exclusive rights to manufacture,use,or sale that invention.
A)True
B)False
Answer: False
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Chapter 3: Differences in Culture
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143 Verified Questions
143 Flashcards
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Sample Questions
Q1) In a social context,the term "values" is used to mean:
A)the economic benefits that are inherent to a culture.
B)the collective wealth of the society.
C)the abstract ideas about what a group believes to be good,right,and desirable.
D)the political ascendancy of a country.
Answer: C
Q2) Although the number of societies with caste systems diminished rapidly during the twentieth century,one partial example still remains in:
A)Japan.
B)China.
C)India.
D)Britain.
Answer: C
Q3) Identify a possible downside to the primacy of the group in a society?
A)It encourages managerial mobility between companies.
B)It could lead to a lack of dynamism and entrepreneurship.
C)It hampers team building and cooperation.
D)It causes an erosion of employee loyalty.
Answer: B
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Page 5
Chapter 4: Ethics in International Business
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142 Verified Questions
142 Flashcards
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Sample Questions
Q1) What are rights theories? Also,define fundamental rights in the context of rights theories.
Q2) Businesses can make sure they are hiring individuals with strong personal ethics if they:
A)administer physiological tests to the candidates.
B)refrain from setting unrealistic performance expectations.
C)ask for letters of references from the candidates.
D)hire only relatives of current employees.
Q3) No one owns the atmosphere or the oceans,so no one is harmed if these are polluted.
A)True
B)False
Q4) People who work for or own the company such as employees,board of directors,and stockholders are identified as the _____ of a company.
A)internal stakeholders
B)venture capitalists
C)external stakeholders
D)passive stakeholders
Q5) Outline the utilitarian approach to business ethics and examine its weaknesses.
Page 6
Q6) Who are a firm's stake holders? What are the two types of stakeholders?
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Chapter 5: International Trade Theory
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151 Verified Questions
151 Flashcards
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Sample Questions
Q1) Advocates of free trade rely on Ricardo's theory of comparative advantage as a major intellectual weapon.
A)True
B)False
Q2) During the 1980s,economists such as Paul Krugman developed what has come to be known as the new trade theory.
A)True
B)False
Q3) Describe Adam Smith's concept of absolute advantage.
Q4) According to Porter,both advanced factors and basic factors are equally significant for competitive advantage.
A)True
B)False
Q5) The basic message of the theory of comparative advantage is that potential world production is greater with unrestricted free trade than it is with restricted trade.
A)True
B)False
Q6) Describe the Leontief paradox.
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Chapter 6: The Political Economy of International Trade
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152 Verified Questions
152 Flashcards
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Sample Questions
Q1) Which of the following has been excluded from the agenda for the Doha round of WTO talks that began in 2001?
A)Reducing barriers to cross-border investment
B)Phasing out subsidies to agricultural producers
C)Limiting the use of antidumping laws
D)Attempts to tie trade to labor standards in a country
Q2) Which one of the following Acts represents U.S.legislation that is similar to the Helms-Burton Act,but is aimed at Libya and Iran?
A)Perkin's Act
B)D'Amato Act
C)Williams Act
D)Cato Act
Q3) Established under U.S.leadership in 1947,which of the following was a multilateral agreement whose objective was to liberalize trade by eliminating tariffs,subsidies,import quotas,and the like?
A)General Agreement of Tariffs and Trade (GATT)
B)North American Free Trade Agreement (NAFTA)
C)Central American Free Trade Agreement (CAFTA)
D)Free Trade Areas of the Americas (FTAA)
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Page 8
Chapter 7: Foreign Direct Investment
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151 Verified Questions
151 Flashcards
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Sample Questions
Q1) 3M,an American firm,produces adhesive tape in St.Paul,Minnesota,and ships the tape to South Korea to be sold.This is an example of:
A)exporting.
B)licensing.
C)franchising.
D)globally dispersed production.
Q2) By limiting imports through quotas,governments reduce the attractiveness of FDI and licensing.
A)True
B)False
Q3) Most recent inflows of FDI into developing nations have been targeted at:
A)impoverished nations in AfricA.
B)the emerging economies of South,East,and Southeast Asia.
C)Latin American countries.
D)post-Communist Eastern European countries.
Q4) Historically,most FDI has been directed at the _____ nations of the world.
A)underdeveloped
B)developing
C)developed
D)emerging
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Chapter 8: Regional Economic Integration
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149 Verified Questions
149 Flashcards
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Sample Questions
Q1) Which of the following observations is true of the Andean Community?
A)It now operates as a common market.
B)It now operates as an economic union like the EU.
C)It now operates as a customs union.
D)It has been disbandeD.
Q2) Identify the EU institution responsible for proposing EU legislation,implementing it,and monitoring compliance with EU laws by member states.
A)Council of the European Union
B)European Commission
C)European Parliament
D)Court of Justice
Q3) Which of the following is a key benefit of adopting the euro?
A)Price comparisons across Europe become easier.
B)It makes Europe an optimal currency area.
C)European exports become cheaper because of a common currency.
D)Purchasing power of EU member nations increases.
Q4) A common currency differentiates a common market from a customs union.
A)True
B)False
Q5) Describe the contents of the North American Free Trade Agreement (NAFTA).
Page 10
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Chapter 9: The Foreign Exchange Market
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150 Verified Questions
150 Flashcards
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Sample Questions
Q1) The average price of a Big Mac in the United States is $3.58.If the "Big Mac Index" is an accurate indicator,which of the following currencies would be the most overvalued?
A)Japanese yen;average price of a Big Mac equals $3.50
B)South African rand;average price of a Big Mac equals $2.46
C)Norwegian krone;average price of a Big Mac equals $7.02
D)Chinese yuan;average price of a Big Mac equals $1.83
Q2) Carry trade has a speculative element attached to it.
A)True
B)False
Q3) If the law of one price were true for all goods and services,the purchasing power parity (PPP)exchange rate could be found from any individual set of prices.
A)True
B)False
Q4) Although the foreign exchange market offers some insurance against foreign exchange risk,it cannot provide complete insurance.
A)True
B)False
Q5) Differentiate between a lead strategy and a lag strategy.
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Chapter 10: The International Monetary System
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149 Verified Questions
149 Flashcards
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Sample Questions
Q1) Which of the following was a major international institution created by the Bretton Woods conference?
A)General Agreement on Tariffs and Trade
B)European monetary system
C)World Trade Organization
D)World Bank
Q2) the:
A)U.S.planned to call for a second Bretton Woods conference.
B)U.S.would no longer support the World Bank.
C)U.S.planned to devalue its currency by 20 percent.
D)dollar was no longer convertible into golD.
Q3) The rise in the value of the dollar between 1980 and 1985 occurred when the United States was running a large and growing trade deficit.Explain the factors that led to this rise.
Q4) The ____ was a system to regulate fixed exchange rates before the introduction of the euro.
A)European Free Trade Association
B)European Monetary System
C)International monetary system
D)European Community
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Chapter 11: The Strategy of International Business
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150 Verified Questions
150 Flashcards
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Sample Questions
Q1) Firms that pursue a(n)_____ strategy try to create value by transferring valuable skills and products to foreign markets where indigenous competitors lack those skills and products.
A)nationalization
B)transnational
C)global standardization
D)international
Q2) Firms that pursue a transnational strategy focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale,learning effects,and location economies.
A)True
B)False
Q3) The ability to spread fixed costs over a large volume results in a cost-savings phenomenon referred to as:
A)volume synergies.
B)economies of scale.
C)captured savings.
D)size effects.
Q4) List the advantages of strategic alliances.
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Chapter 12: Entering Foreign Markets
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150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/60072
Sample Questions
Q1) Establishing a wholly owned subsidiary in a foreign country can be done:
A)through a turnkey operation or through a licensing agreement.
B)through franchising or through licensing.
C)by setting up a new operation or by acquiring an established firm.
D)by establishing a firm that is jointly owned by two or more independent firms.
Q2) One advantage of a joint venture is that a firm benefits from a local partner's knowledge of the host country's competitive conditions,culture,language,political systems,and business systems.
A)True
B)False
Q3) What are the implications of a firm choosing to enter a foreign market on a significant scale? How do the consequences of this decision relate to the value of the resulting strategic commitments?
Q4) From a capital investment standpoint,which of the following is generally the most costly form of serving a foreign market?
A)Joint ventures
B)Licensing
C)Franchising
D)Wholly owned subsidiary
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Chapter 13: Exporting,Importing,and Countertrade
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149 Verified Questions
149 Flashcards
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Sample Questions
Q1) When a time draft is drawn on and accepted by a bank,it is called a:
A)trade acceptance.
B)banker's check.
C)banker's acceptance.
D)bill of lading.
Q2) Unlike their German and Japanese competitors,many U.S.firms are relatively blind when they seek export opportunities;they are information disadvantaged.
A)True
B)False
Q3) Why is lack of trust such a critical issue for firms engaged in international trade? How can firms engaged in trade reduce lack of trust issues?
Q4) Time drafts are negotiable instruments. A)True
B)False
Q5) Why do many neophyte exporters have problems when first trying to do business abroad? What are the common pitfalls experienced by neophyte exporters?
Q6) List the forms of government-backed assistance that can help finance export programs for potential U.S.exporters?
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Chapter 14: Global Production,Outsourcing,and Logistics
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150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/60070
Sample Questions
Q1) A statistically based philosophy that aims to reduce defects,boost productivity,eliminate waste,and cut costs throughout a company is called:
A)ISO 1900.
B)kanban.
C)Six Sigma.
D)kaizen.
Q2) Concentration of production makes sense when:
A)trade barriers are high.
B)the product's value-to-weight ratio is high.
C)important exchange rates are volatile.
D)the product does not serve universal needs.
Q3) The benefits of manufacturing components in-house seem to be greatest when highly specialized assets are involved.
A)True
B)False
Q4) At Six Sigma,a production process would be 90.66 percent accurate.
A)True
B)False
Q5) Discuss the role played by ISO 9000 certification in improving product quality.
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Chapter 15: Global Marketing and RD
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150 Verified Questions
150 Flashcards
Source URL: https://quizplus.com/quiz/60069
Sample Questions
Q1) The global corporation
A)considers the world to consist of distinct and unique entities.
B)operates at low relative costs.
C)operates from any one country.
D)adjusts its products and practices to each country.
Q2) Spreading the fixed costs of developing the advertisements over many countries increases the costs of value creation in standardized advertising.
A)True
B)False
Q3) In the context of strategic pricing,_____ occurs whenever a firm sells a product for a price that is less than the cost of producing it.
A)inflation
B)dumping
C)price reengineering
D)outsourcing
Q4) Theodore Levitt argued that the emergence of a global market calls for standardized consumer products.
A)True
B)False
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Chapter 16: Global Human Resource Management
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140 Verified Questions
140 Flashcards
Source URL: https://quizplus.com/quiz/60068
Sample Questions
Q1) Selection is just the first step in matching a manager with a job.The next step is:
A)recruiting.
B)screening.
C)evaluating.
D)training.
Q2) Mendenhall and Oddou identified that individuals who had high _____ were able to adapt their interest in food,sport,and music better.
A)perceptual ability
B)self-orientation
C)others orientation
D)cultural toughness
Q3) A citizen of Japan who moves to the United States to work at Microsoft would be classified as a(n):
A)expatriate.
B)inpatriate.
C)third-country national.
D)host-country national.
Q4) Who is an expatriate manager? How can firms identify potential expatriate managers?
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