Cross-Cultural Management
Test Preparation
Course Introduction
Cross-Cultural Management explores the complexities and challenges of managing people and projects in an increasingly globalized business environment. The course examines how cultural differences impact communication, leadership, negotiation, team dynamics, and decision-making within organizations, highlighting the importance of cultural awareness and sensitivity. Students will analyze real-world cases, develop strategies for overcoming cross-cultural barriers, and learn frameworks for effective management in diverse contexts. Emphasis is placed on understanding both the theoretical foundations and practical applications necessary for successfully navigating cultural diversity in contemporary workplaces.
Recommended Textbook
International Marketing 17th Edition by Philip Cateora
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19 Chapters
1940 Verified Questions
1940 Flashcards
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Page 2
Chapter 1: The Scope and Challenge of International Marketing
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Sample Questions
Q1) Political and legal issues a company may face abroad are mitigated by the "alien status" of the company.
A)True
B)False
Answer: False
Q2) For companies today, becoming international is a luxury only some can afford.
A)True
B)False
Answer: False
Q3) To avoid errors in business decisions, it is necessary to conduct a cross-cultural analysis that isolates the self-reference criterion influences. List the four steps that make up the framework for such an analysis.
Answer: The steps are: (1) define the business problem or goal in home-country cultural traits, habits, or norms; (2) define the business problem or goal in foreign-country cultural traits, habits, or norms through consultation with natives of the target country-make no value judgments; (3) isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem; and, (4) redefine the problem without the SRC influence and solve for the optimum business goal situation.
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Chapter 2: The Dynamic Environment of International Trade
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Sample Questions
Q1) A balance-of-payments statement includes three accounts. Two of those accounts are the current account and the capital account. What is the third account found on the balance-of-payments statement?
A) Investment account
B) Receivables account
C) Services account
D) Credit account
E) Official reserves account
Answer: E
Q2) As both special drawing rights (SDRs) and the U.S. dollar have lost their utility as the basic medium of financial exchange, most monetary statistics relate to gold rather than dollars.
A)True
B)False
Answer: False
Q3) In general, tariffs decrease inflationary pressures.
A)True
B)False
Answer: False
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Page 4
Chapter 3: History and Geography: The Foundations of Culture
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Sample Questions
Q1) How has Japan's history influenced its contemporary behavior and culture?
Answer: Loyalty to family, to country, to company, and to social groups and the strong drive to cooperate, to work together for a common cause, permeate many facets of Japanese behavior and have historical roots that date back thousands of years. Historically, loyalty and service, a sense of responsibility, and respect for discipline, training, and artistry were stressed to maintain stability and order. Confucian philosophy, taught throughout Japan's history, emphasizes the basic virtue of loyalty "of friend to friend, of wife to husband, of child to parent, of brother to brother, but, above all, of subject to lord," that is, to country. A fundamental premise of Japanese ideology reflects the importance of cooperation for the collective good. Japanese achieve consensus by agreeing that all will unite against outside pressures that threaten the collective good. A historical perspective gives the foreigner in Japan a basis on which to begin developing cultural sensitivity and a better understanding of contemporary Japanese behavior.
Q2) In the context of social responsibility and environmental management, sustainable development is about protecting the environment at all costs.
A)True
B)False
Answer: False
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Chapter 4: Cultural Dynamics in Assessing Global Markets
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Sample Questions
Q1) Which of the following is a characteristic of cultures with high Uncertainty Avoidance Index (UAI)?
A) They are highly tolerant of ambiguity.
B) They tend to have a low level of anxiety.
C) They have a low level of concern with security and rule following.
D) They take a more empirical approach to understanding and knowledge.
E) They seek absolute truth.
Q2) Which of the following reflects Dutch management professor Geert Hofstede's perception of culture?
A) It is a weapon that is often used against the poor.
B) It is a problem-solving tool.
C) It is a bias that is used to justify racial inequality.
D) It is a relationship enhancer.
E) It is a reflection of a nation's evolution.
Q3) When a culture scores high in Individualism/Collectivism Index, individuals fail to identify with groups.
A)True
B)False
Q4) In the context of the elements of culture, briefly discuss the concept of linguistic distance.
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Chapter 5: Culture, Management Style, and Business Systems
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Sample Questions
Q1) Which of the following organizations conducts an international survey of businesspeople, political analysts, and the general public on corruption and compiles the Corruption Perception Index (CPI)?
A) Organization of American States (OAS).
B) Amnesty International.
C) Oxfam International.
D) Transparency International (TI).
E) CARE International.
Q2) Which of the following issues looms large in individualistic cultures?
A) Issue of fairness in opportunity
B) Issue of attaining efficiency through reduced transaction cost
C) Issue of lack of physical appeal of individualistic employees
D) Issue of decision making being highly centralized
E) Issue of lack of ecological concerns
Q3) The majority of business customs fit into the cultural elective category.
A)True
B)False
Q4) Distinguish between the two time systems in the world, as defined by Edward T. Hall.
Q5) Briefly describe the different types of business customs.
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Chapter 6: The Political Environment: a Critical Concern
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Sample Questions
Q1) As a result of the General Agreement on Tariffs and Trade, foreign businesses no longer need to be concerned about the stability or instability of prevailing government policies.
A)True
B)False
Q2) _____ occurs when host countries gradually cause the transfer of foreign investment to national control and ownership through a series of government decrees by mandating local ownership and greater national involvement in a company's management.
A) Confiscation
B) Expropriation
C) Domestication
D) Democratization
E) Socialization
Q3) Licensing is least effective in situations where the technology is unique and the risk is high.
A)True
B)False
Q4) Discuss stability of governments and list the main political causes of instability in international markets.
Page 8
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Chapter 7: The International Legal Environment: Playing by the Rules
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Sample Questions
Q1) Code law prohibits the receipt and payment of interest on loans.
A)True
B)False
Q2) The responsibility of determining if a license is required rests with the _____.
A) Department of Commerce of the exporting nation
B) regulatory body of the industry
C) exporter
D) U.S. Customs department
E) importing country's authorities
Q3) The _____ is a multicountry agreement that has established a regional patent system that allows any nationality to file a single international application for a European patent.
A) Madrid Arrangement
B) Paris Convention
C) TRIPs Agreement
D) Basel Convention
E) European Patent Convention
Q4) Briefly describe the modus operandi of cybersquatters.
Page 9
Q5) Compare conciliation with arbitration.
Q6) Identify the two types of licenses required for export.
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Page 10
Chapter 8: Developing a Global Vision Through Marketing Research
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Sample Questions
Q1) A toy manufacturer conducted a survey to estimate the market demand for its specialized wood-based toys in a foreign country. For the survey, it interviewed all the families in four rural towns of that country but it did not have sufficient information to make the distinction between those with children and those without children. The market demand forecast based on this survey failed to match the actual demand for the toys. Which of the following is the most likely reason for this failure?
A) Difficulty in defining the research objective
B) Unwillingness of the respondents to reply to survey questions
C) Difficulty in translating the responses
D) Inappropriate sample selection due to lack of adequate demographic data
E) Lack of appropriate methods for analyzing the data
Q2) The ideal approach to multicountry marketing research is to have local researchers in each country, with close coordination and networking between the client company and the local research companies.
A)True
B)False
Q3) The public, face-saving truth is referred to as honne in Japan.
A)True
B)False
Page 11
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Chapter 9: Economic Development and the Americas
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Sample Questions
Q1) The DR-CAFTA includes a wide array of tariff reductions aimed at increasing trade and employment.
A)True
B)False
Q2) Paved roads, railroads, seaports, communication networks, and financial networks are illustrations of _____.
A) environmental resources
B) inventory
C) infrastructure
D) factors of production
E) freight claims
Q3) Which of the following countries is a member of the free trade agreement
DR-CAFTA?
A) Bahrain
B) Bhutan
C) Morocco
D) Costa Rica
E) Oman
Q4) What is economic development?
Q5) Describe the political and economic changes affecting global marketing.
Page 12
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Chapter 10: Europe, Africa, and the Middle East
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Sample Questions
Q1) The Economic and Monetary Union provision of the Maastricht Treaty established the parameters of the creation of the _____.
A) dollar
B) pound
C) rupee
D) ruble
E) euro
Q2) Nations with complementary economic bases are least likely to:
A) develop a distinctive monetary system.
B) allow individual differences to be outweighed by the total benefit of economic integration.
C) experience internal economic development.
D) achieve enlargement of market opportunities through preferential tariff treatment.
E) encounter frictions in the development and operation of a common market unit.
Q3) A customs union is the most fully integrated form of regional cooperation.
A)True
B)False
Q4) Briefly describe free trade area, customs union, common market, and political union.
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Page 13
Chapter 11: The Asia Pacific Region
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Sample Questions
Q1) Tianjin is China's largest industrial city.
A)True
B)False
Q2) Owing to the deeply corrupt system, most of the U.S. manufacturers in India are leaving for other countries or pulling their money back home.
A)True
B)False
Q3) The first meeting of the members of the ASEAN+3 was devoted to devising a system whereby the member countries could:
A) defend their currencies against future attack.
B) improve the multilateral trade.
C) keep inflation under check.
D) acquire nuclear technology.
E) improve agricultural production.
Q4) Discuss the political factors behind the Japanese crisis of 1990.
Q5) Give an account of rural China. How have the multinational companies contributed toward its development?
Q6) Discuss APEC's role in international trade.
Q7) Give a brief account of the four major regional economies of China.
Page 14
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Chapter 12: Global Marketing Management: Planning and Organization
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Sample Questions
Q1) With indirect exporting, a company sells to a customer in another country without the use of any intermediaries or distributors.
A)True
B)False
Q2) Which of the following subjects is explored after developing information and selecting a country market in the international planning process?
A) Company character
B) The constraints of home country
C) Geography
D) Host-country constraints
E) The mode of entry
Q3) To be a success in the global marketplace today, the best companies will focus on country as the primary segmentation variable.
A)True
B)False
Q4) List the four phases of the international planning process.
Q5) Briefly explain the benefits of global marketing operations.
15
Q6) Discuss the differences between corporate, strategic, and tactical planning.
Q7) Explain the difference between joint ventures and consortia.
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Chapter 13: Products and Services for Consumers
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Sample Questions
Q1) In countries with low-literacy rates, the pictures and symbols on products are literally taken as instructions and information.
A)True
B)False
Q2) A Korean electronics company had to add detailed instructions about the repair and replacement of its product to make it easy for the local consumers to maintain it. Which of the following components of the product is most likely being altered in the given scenario?
A) The support services component
B) The design component
C) The core component
D) The packaging component
E) The functional component
Q3) Green marketing is the term frequently used to identify a marketer's efforts to reduce its dependency on U.S. dollars as the standard for international exchange.
A)True
B)False
Q4) What is green marketing? How does it affect product development?
Q5) What are the various factors that influence product adaptation in new markets?
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Chapter 14: Products and Services for Businesses
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Sample Questions
Q1) In knowledge-based services such as consulting, engineering, education, and information technology, _____ are a key driver of success and failure.
A) income taxes
B) intellectual property issues
C) free trade zones (FTZs)
D) exchange rate regulations
E) tariffs on the import of goods
Q2) Which of the following stages of Rostow's five-stage model of economic growth do industrialized economies such as Korea and the Czech Republic fit into?
A) Preconditions to takeoff
B) Takeoff
C) Traditional society
D) Drive to maturity
E) The age of mass consumption
Q3) With respect to Rostow's five-stage model of economic development, countries in Stage 5 (the age of mass consumption) are mostly service economies.
A)True
B)False
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17
Chapter 15: International Marketing Channels
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Sample Questions
Q1) In the context of cultural reactions when engaging in e-commerce, the color red is associated with socialism in _____.
A) the United States
B) China
C) Brazil
D) Uruguay
E) Spain
Q2) As traditional channel structures are changing, importers and retailers are also becoming involved in new product development.
A)True
B)False
Q3) The distribution channel process includes all activities, beginning with the manufacturer and ending with the retailer.
A)True
B)False
Q4) Discuss the continuity problem associated with a channel of distribution.
Q5) Discuss the Export Trading Company (ETC) Act.
Q6) What is complementary marketing?
Q7) What is secondary wholesaling?
Page 18
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Chapter 16: Integrated Marketing Communications and International Advertising
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Sample Questions
Q1) In-store demonstrations, samples, coupons, contests, and sweepstakes are examples of _____ devices.
A) personal selling
B) sales promotions
C) content marketing
D) direct selling
E) public relations
Q2) In an international advertising process, what factors must be considered by an advertiser while selecting a medium?
Q3) _____ in countries can distort media choice by changing the cost ratios of various media.
A) Advertising taxation
B) Language
C) Power distance
D) Cultural traits
E) Dialect
Q4) Television is an advertising medium with no restrictions in most countries.
A)True
B)False
Q5) What are sales promotions?
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Chapter 17: Personal Selling and Sales Management
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Sample Questions
Q1) The main disadvantage of hiring local nationals for an international sales force is the tendency of headquarters personnel to ignore their advice.
A)True
B)False
Q2) Which of the following is a strategy that international companies use to encourage sales personnel to accept foreign assignments?
A) International experience is considered important to join top management.
B) It is made mandatory for all sales personnel to take up expatriate positions.
C) Part of the headquarters of the company is set up at the foreign location.
D) Companies unfailingly provide employment for the employee's spouse in a top position.
E) Legal obligations are imposed on the expatriate sales representatives.
Q3) In the context of international marketing, the first step in managing a sales force is making a decision regarding its design.
A)True
B)False
Q4) What are the reasons for the low morale and growing amount of attrition among returning expatriates?
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Chapter 18: Pricing for International Markets
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Sample Questions
Q1) In _____, a firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets.
A) full-cost pricing
B) full cost pricing
C) fixed-cost pricing
D) variable-cost pricing
E) demand-based pricing
F) premium pricing
Q2) In a free trade zone, payment of import duties is postponed until the product leaves the free trade zone and enters the country.
A)True
B)False
Q3) What are the essential features required while making price quotations?
Q4) In bills of exchange, the buyer assumes all the risk until the payment is made.
A)True
B)False
Q5) Write a brief note on parallel importing.
Q6) What is the difference between forfaiting and factoring?
Q7) What is a countertrade? What are the problems of countertrading?
Page 21
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Chapter 19: Inventive Negotiations With International
Customers, Partners, and Regulators
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Sample Questions
Q1) In the context of international business negotiations, labeling Americans as "cowboys" and associating the Japanese with the image of a samurai warrior are examples of:
A) national icons.
B) linguistic identifiers.
C) social hierarchy.
D) class distinction.
E) cultural stereotypes.
Q2) Which of the following aspects of international business negotiations is considered to be the most difficult?
A) Agreeing on the number of participants in the negotiation
B) Finding the best alternative to a negotiated agreement
C) Actual conduct of the face-to-face meeting
D) Deciding on the location and physical arrangements
E) Selection of the appropriate negotiation team
Q3) Give a brief description of the styles of negotiation of the Japanese, the Koreans, and the French.
Q4) How do differences in perceptions of objectivity affect international negotiations? Provide an example to support your answer.
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