Cross-Cultural Management Question
Bank
Course Introduction
Cross-Cultural Management explores the challenges and opportunities presented by managing people and organizations across different cultural contexts. This course examines how cultural differences impact leadership, communication, motivation, decision-making, and negotiation within international and multicultural workplaces. Students will develop insights into cultural frameworks, such as Hofstede's dimensions, and learn strategies to foster cross-cultural understanding and collaboration. Through case studies, group projects, and real-world examples, learners acquire practical skills to navigate cultural diversity and implement effective management practices in a globalized business environment.
Recommended Textbook
M International Business 1st Edition by Michael
Geringer
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17 Chapters
1505 Verified Questions
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Page 2
Chapter 1: The Challenging World of International Business
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Sample Questions
Q1) External environmental forces are commonly referred to as controllable.
A)True
B)False
Answer: False
Q2) The world stock of outward foreign direct investment was $16.2 trillion in 2008,which was 9 times what it was in 1990.
A)True
B)False
Answer: True
Q3) According to the text,environmental elements over which management does have some control-include competitive,labor,and financial forces-are called the internal forces.
A)True
B)False
Answer: False
Q4) Foreign business refers to the operations of a company outside its home or domestic market.
A)True
B)False
Answer: True
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Chapter 2: International Trade and Investment
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Sample Questions
Q1) The monopolistic advantage theory suggests that firms in oligopolistic industries are likely to _______________foreign direct investment when they have technical and other advantages over indigenous firms.
A)increase
B)reduce
C)ignore
D)not change
E)exceed
Answer: A
Q2) Which of the following elements are included in Porter's Diamond Model of national advantage?
A)competitive conditions
B)export conditions
C)factor conditions
D)supply conditions
E)social conditions
Answer: C
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Page 4
Chapter 3: International Institutions From an International Business Perspective
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Sample Questions
Q1) Most African nations have their main trade relationships
A)within local FTAs.
B)with other African nations due to transport costs.
C)with developed nations,often built on former colonial ties.
D)with China.
Answer: C
Q2) The IBRD is a major institution of the World Bank whose function is to loan to A)countries whose income levels make them not creditworthy.
B)private sector development-focused firms.
C)private individuals in developing nations whose entrepreneurial efforts support development.
D)middle income and creditworthy poor nations.
Answer: D
Q3) All EU members use the euro,and thus have given up part of their national sovereignty to the EU.
A)True
B)False
Answer: False
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Chapter 4: Sociocultural Forces
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Sample Questions
Q1) For countries where people are relatively loosely connected and tend to focus on themselves and their immediate family,Hofstede would describe them as A)myopic.
B)xenophobic.
C)self-referential.
D)individualistic.
Q2) Although some business areas are affected by culture,accounting and finance are objective,and thus,universal.
A)True
B)False
Q3) One danger of using the frameworks in this chapter is that if they are applied prescriptively,they may well lead to a sophisticated form of stereotyping.Explain this danger and suggest ways to avoid it.
Q4) Trompenaars' dimension of individualism vs.communitarianism differs greatly from Hofstede's individualism-collectivism dimension.
A)True
B)False
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Chapter 5: Natural Resources and Environmental Sustainability
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Sample Questions
Q1) The U.S.Energy Information Administration projects that world energy consumption will increase through 2035,with dramatic increases in
A)China and India.
B)North America.
C)Africa and the Middle East.
D)Europe.
Q2) Environmental sustainability is about maintaining the environment,and it is both local and global.
A)True
B)False
Q3) Mountains tend to impede trade,whereas flat areas tend to facilitate trade relationships.
A)True
B)False
Q4) Densely populated areas coincide with A)rivers,lakes and seacoasts.
B)inland waterways.
C)rich mineral reserves and rare earth deposits.
D)low levels of environmental awareness.
Page 7
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Chapter 6: Political and Trade Forces
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Sample Questions
Q1) Social dumping occurs when an exporting country
A)imposes an export tax on domestic businesses that export,to compensate for the opportunity cost to the domestic market.
B)creates unfair competition based on lower costs because they provide little social support system to the worker.
C)target markets to specific vulnerable groups in the importing country.
D)exports good that are not sellable in the domestic environment due to hazards and safety issues.
Q2) New types of dumping include concession dumping.
A)True
B)False
Q3) The owners of private companies sometimes complain government owned companies have unfair advantages.Discuss some of these complaints.
Q4) Tariff barriers may be used to protect domestic industry from foreign,lower-cost producers.
A)True
B)False
Q5) What is dumping and why is it found to be problematic?
Q6) Discuss barriers to trade,using examples to illustrate your points.
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Chapter 7: Intellectual Property and Other Legal Forces
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Sample Questions
Q1) Where litigation should occur has to do with the location of the problem and is usually clear to both the defendant and plaintiff.
A)True
B)False
Q2) Where litigation in international disputes should occur is
A)usually evident from the documentation available.
B)at times unclear,in which case,the UN International Court of Justice will make a jurisdictional ruling.
C)often complex,so contracts should include choice of law and choice of forum clauses.
D)dictated by where the problem arose; a problem arising in India is adjudicated in India.
Q3) Trademarks can be
A)a shape,color,design,sound,phrase,abbreviation by which the product is designated.
B)any visual property consciously associated with the product.
C)a design associated with the product,using color and shape.
D)a mark under which the firm does business.
Q4) How might U.S.law affect international managers?
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9
Chapter 8: The International Monetary System and Financial Forces
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Sample Questions
Q1) If freely floating currencies are allowed to fluctuate against one another,at times the fluctuations might be quite large.
A)True
B)False
Q2) Fixed rate relationships among currencies could not stay fixed,according to Obstfeld and Rogoff,because
A)the volume of global transactions started to exceed most countries' foreign exchange reserves,so governments couldn't intervene to sustain the value of their currency.
B)the complexity of international trade demanded return of the gold standard.
C)WalMart and other leading firms argued successfully at the Federal Reserve that fixed rates were too costly to maintain.
D)the EU had decided to float the euro.
Q3) Currencies float because they are allowed to make their own adjustments in the marketplace.
A)True
B)False
Q4) Briefly review the appeal of the gold standard and comment on why it is not presently in use.
10
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Chapter 9: Labor Forces
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Sample Questions
Q1) One challenge presented to employers by the rural to urban migration is
A)keeping the rural immigrants in the cities.
B)supporting the lifestyle adjustment necessary for rural immigrants in an urban work setting.
C)maintaining the rural immigrant's interest in work.
D)finding urban recreation areas for the rural immigrants,such as football fields and baseball diamonds.
Q2) The vulnerable workforce is now,as a result of the financial crisis,estimated to be one-half the global workforce.
A)True
B)False
Q3) By 2010,more than half the world's workforce
A)is located in urban areas.
B)is located in rural areas.
C)is located in edge cities.
D)is located in urban areas in developing countries.
Q4) What are guest workers and why do some nations have them?
Q5) Union membership is high in France and Japan and low in Denmark and Sweden.
A)True
B)False
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Chapter 10: International Competitive Strategy
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Sample Questions
Q1) Scenarios are multiple,plausible stories for probable futures.
A)True
B)False
Q2) There is a growing tendency for firms to use strategic planners to devise the corporate plan,which is then handed to operations people for execution.
A)True
B)False
Q3) When there is strong pressure for a company to adapt its products or services for local markets,it should tend to use a:
A)global strategy.
B)multidomestic strategy.
C)transnational strategy.
D)differentiation strategy.
E)home replication strategy.
Q4) Value chain analysis focuses primarily on the question,"What value does the company want to deliver to these customers?"
A)True
B)False
Q5) What international strategy is and why it is important?
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Chapter 11: Organizational Design and Control
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Sample Questions
Q1) The international structural stages model suggests that a typical evolutional path for an international company's structure would be:
A)from international division to geographical area division to worldwide product division.
B)from international division to worldwide product division to geographical area division.
C)from geographical area division to worldwide product division to global matrix.
D)from functional division to horizontal company to virtual corporation.
E)from international division to worldwide product division to global matrix.
Q2) A structure organized by more than one dimension at the top level is known as a: A)hybrid organization.
B)matrix organization.
C)matrix overlay.
D)network corporation.
E)virtual corporation.
Q3) Both multinational and global companies use regionalized organizations.
A)True
B)False
Q4) Explain why and where decisions are made among ICs and their subsidiary units.
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13
Chapter 12: Assessing International Markets
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Sample Questions
Q1) Cluster analysis is a technique for dividing objects into groups based on geographic or economic similarity.
A)True
B)False
Q2) A statistical technique that divides objects into groups so that the objects within each group are similar is called:
A)trend analysis.
B)group classification analysis.
C)cluster analysis.
D)factor analysis.
E)trend factor.
Q3) The analyst is mostly concerned with which of the following during the second screening?
A)Trends in inflation
B)Interest rates
C)Exchange rates
D)Trends in inflation,interest rates,and exchange rates
E)Specialized industrial materials
Q4) Discuss why imports do not completely measure market potential.
Q5) Discuss the requirements of viable markets under the segment approach.
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Chapter 13: Entry Modes
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Sample Questions
Q1) Sales companies will import in their own name from the parent and will invoice in the currency of the parent company.
A)True
B)False
Q2) In a 12-country study conducted by Ernst & Young,65% of U.S.companies were found to be engaged in a strategic alliance.
A)True
B)False
Q3) What are the reasons that firms,both small and large,may engage in exporting?
Q4) When the government of a host country requires companies to have some local participation,foreign firms must engage in strategic alliances with local owners.
A)True
B)False
Q5) The licensee generally pays a fix sum when signing a license agreement and then royalties of five to seven percent of sales over the life of the contract.
A)True
B)False
Q6) What are the disadvantages of joint ventures?
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Chapter 14: Marketing Internationally
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Sample Questions
Q1) Luxury items such as perfume can often be sold without adaptation in many different foreign markets.
A)True
B)False
Q2) Why is the international marketing manager's task complex?
Q3) The marketing of services,sometimes called intangibles,is similar to the marketing of consumer products in that these products are generally harder to market globally than industrial products.
A)True
B)False
Q4) Generally as marketers go down the economic and social strata in each country,they tend to find greater similarities among countries on social and cultural values.
A)True
B)False
Q5) Marketing managers of global firms who may want to use a single worldwide strategy realize that doing so is impossible.
A)True
B)False
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Chapter 15: Global Operations and Supply Chain Management
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Sample Questions
Q1) Documented agreements containing technical specifications or other precise criteria that will be used consistently as guidelines,rules,or definitions of the characteristics of a product,process,or service are referred to as:
A)standards.
B)processes.
C)logistics.
D)value chains.
E)marketing standards.
Q2) Electronic procurement exchanges:
A)can facilitate efforts to obtain letters of credit.
B)can permit bid/quote systems for buyers and suppliers.
C)protect companies from potential loss of proprietary data.
D)can facilitate efforts to obtain letters of credit,and permit bid/quote systems for buyers and suppliers.
E)can facilitate efforts to obtain letters of debit.
Q3) Computer-integrated manufacturing reduces the economic batch quantity to one and facilitates the potential for mass customizaton.
A)True
B)False
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Chapter 16: Managing Human Resources in an International Context
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Sample Questions
Q1) In developing countries,third country nationals are often preferred by the host country than are nationals of the home country.
A)True
B)False
Q2) Sources of successful managers for IC activities include the home country,the host country,or a third country.
A)True
B)False
Q3) If a company feels that it probably will send parent country nationals abroad,it will frequently encourage them to study the language and culture of the country to which they are going.
A)True
B)False
Q4) Perks are symbols of rank in the corporate hierarchy and are used to compensate executives while minimizing taxes.
A)True
B)False
Q5) Please provide an overview of the major issues a compensation package for expatriates should address.
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Chapter 17: International Accounting and Financial Management
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Q1) Swap contracts exchange foreign currency debt for another liability in the home currency.
A)True
B)False
Q2) FASB 52 requires that companies record foreign currency based transactions at the spot rate at the time of the transaction.
A)True
B)False
Q3) The trend in the debt financing of foreign subsidiaries is to tap the local markets first,so Toyota in the U.S.would tend to tap into U.S.dept markets and Pepsi in Japan would tend to go to the Japanese debt markets first.
A)True
B)False
Q4) A foreign currency sale is recorded as revenue,using the exchange rate
A)on the date of the sale.
B)on the date the balance sheet is consolidated to corporate.
C)on an historical average over the period between the sale and the consolidation. D)that the company decides to use.
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