Cross-Cultural Management
Textbook Exam Questions
Course Introduction
Cross-Cultural Management explores the challenges and opportunities that arise when managing individuals and teams from diverse cultural backgrounds in a globalized business environment. The course examines theories of culture, cultural dimensions, communication styles, and their impact on organizational behavior and leadership. Students will learn practical strategies for effective cross-cultural communication, negotiation, conflict resolution, and decision-making. Through case studies, group projects, and experiential exercises, students develop skills to navigate complexities in international business operations and foster inclusive, productive workplaces across cultural boundaries.
Recommended Textbook
International Management Culture Strategy and Behavior 8th Edition by Fred Luthans
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14 Chapters
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Page 2
Chapter 1: Globalization and International Linkages
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Sample Questions
Q1) What is a multinational corporation? Why would a company want to be a multinational corporation?
Answer: A multinational corporation is a firm that has operations in more than one country, international sales and a nationality mix of managers and owners.Firms pursue international markets to increase their sales and net income.For example, of the 100 largest American multinational corporations, in recent years, approximately one-third have earned more annual income in the international market than in the domestic market.
Q2) The subcontracting or contracting out of activities to endogenous organizations that had previously been performed by the firm is called:
A)Homesourcing
B)Insourcing
C)Offshoring
D)Outsourcing
Answer: D
Q3) A keiretsu is a government agency in South Korea.
A)True
B)False
Answer: False
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Page 3
Chapter 2: The Political, Legal, and Technological Environment
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Q1) The most obvious dimension of the technological environment facing international managers today is:
A)Telecommunications
B)Transportation
C)Agricultural mechanization
D)Improved service technologies
Answer: A
Q2) According to the text, _____ is one of the biggest problems facing MNCs.
A)Fear of investing abroad
B)Loss of sales to foreign competitors
C)Uneven ethical standards
D)Very restrictive foreign bureaucracies
Answer: D
Q3) The FCPA makes it illegal to influence foreign officials through the granting of favorable tariff rates.
A)True
B)False
Answer: False
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Chapter 3: Ethics and Social Responsibility
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Q1) 'Freedom of association and the effective recognition of the right to collective bargaining' is a principle of the Global Compact which applies to:
A)Human rights
B)Anticorruption
C)Environment
D)Labor
Answer: B
Q2) Identify the incorrect statement regarding the transfer of the labor force overseas.
A)It creates an interesting dynamic in the scope of ethics
B)It seeks to employ local citizens who tend to identify themselves with the corporation and not the outside environment
C)It creates an interesting dynamic in the scope of corporate responsibility
D)It seeks to move individuals offshore who will identify themselves with the corporation and not the outside environment
Answer: B
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Chapter 4: The Meanings and Dimensions of Culture
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Q1) If cultural norms do not give employees bonuses or commissions as a form of recognition, it means that the culture:
A)Encourages stability
B)Is informal
C)Is high on organizational loyalty
D)Frowns upon individual rewards
Q2) According to Trompenaars, _____ refers to people regarding themselves as individuals, while _____ refers to people regarding themselves as part of a group.
A)Individualism; communitarianism
B)Individualism; specificism
C)Universalism; particularism
D)Communitarianism; universalism
Q3) Describe the difference between an achievement culture and an ascription culture.How does an understanding of these differences help an international manager be effective in dealing with clients outside his or her own culture?
Q4) Discuss the notions of individualism and communitarianism as given by Trompenaars.
Q5) What is GLOBE? Discuss its cultural dimensions.
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Page 6
Chapter 5: Managing Across Cultures
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Q1) Russians view contracts as binding only if they continue to be mutually beneficial.
A)True
B)False
Q2) A company with a(n) _____ predisposition tries to integrate a global systems approach to decision making.
A)Regiocentric
B)Globalcentric
C)Ethnocentric
D)Geocentric
Q3) Parochialism is the tendency to view the world through one's own eyes and perspectives.
A)True
B)False
Q4) The word namaste means "greetings to you" in:
A)China
B)Japan
C)India
D)Russia
Q5) Describe the difference between parochialism and simplification.
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Chapter 6: Organizational Cultures and Diversity
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Q1) A _____ group is a group in which two or more members represent each of two distinct cultures, such as four Mexicans and four Taiwanese who have formed a team to investigate the possibility of investing in a venture.
A)Multicultural
B)Bicultural
C)Token
D)Homogeneous
Q2) Change in the incubator culture is:
A)Slow and calculated
B)Almost non-existent
C)Moderate and methodological
D)Fast and spontaneous
Q3) Which of the following is not an advantage of virtual teams?
A)They can reduce problems associated with personality conflicts
B)They can keep a project moving around the clock
C)They provide a competitive advantage
D)They force managers to rely on subjective data when assessing team members' work
Q4) What is organizational culture and what are some of its major characteristics?
Q5) Discuss some of the potential problems associated with diversity.
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Chapter 7: Cross-Cultural Communication and Negotiation
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Q1) The nonverbal method of communicating through the use of eye contact and gaze is:
A)Proxemics
B)Haptics
C)Oculesics
D)Chronemics
Q2) The area of communication that deals with conveying messages through the use of eye contact and gaze is referred to as kinesics.
A)True
B)False
Q3) Many multinational corporations use _____ as the common language for international communication.
A)French
B)English
C)Spanish
D)Japanese
Q4) Communicating through the use of written means is referred to as haptics.
A)True
B)False
Q5) What is communication? What is the key to effective communication?
Page 9
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Chapter 8: Strategy Formulation and Implementation
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Sample Questions
Q1) There is definitive evidence that strategic planning in the international arena always results in higher profitability.
A)True
B)False
Q2) A multinational firm's choice of a locale is affected by all of the following factors except:
A)Desirability of the location for employees
B)The number of market shares invested in their home country
C)Proximity to competitors
D)Nature of the workforce
Q3) To a growing extent, the customers of MNCs have heterogeneous tastes and this has helped to spread international consumerism.
A)True
B)False
Q4) External resource analysis helps the firm to evaluate its current financial strengths and weaknesses.
A)True
B)False
Q5) What is the "BOP" and why is this strategy challenging to implement?
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Chapter 9: Entry Strategies and Organizational Structures
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Q1) Companies that are in growing businesses and have broad product lines most often use a global area division structure.
A)True
B)False
Q2) Clothing manufacturing fits which of the following globalization versus local responsiveness combination?
A)Low pressure for globalization, low pressure for local responsiveness
B)Low pressure for globalization, high pressure for local responsiveness
C)High pressure for globalization, low pressure for local responsiveness
D)High pressure for globalization, high pressure for local responsiveness
Q3) At the center of the _____ are nodes, which are units charged with coordinating product, functional and geographic information.
A)Cross-cultural matrix structure
B)Worldwide divisional structure
C)Transnational network structure
D)Global product division structure
Q4) "Companies still in the developmental stages of international business involvement are most likely to adopt the international division structure".Why?
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11
Chapter 10: Managing Political Risk, Government Relations, and Alliances
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Q1) The theory behind _____ is quite simple.The MNC works to maintain a stronger bargaining power position than that of the host country.
A)Analogous negotiating power
B)Pertinent bargaining power
C)Proportionate negotiating power
D)Relative bargaining power
Q2) _____ investments involve the production of goods or services that are the same as those produced at home.
A)Conglomerate
B)Lateral
C)Horizontal
D)Vertical
Q3) In a conglomerate investment, the goods or services produced are not similar to those produced at home.
A)True
B)False
Q4) Explain the role of host governments in alliances.
Q5) In the context of international business, what is meant by the term "political risk"? In general, how do MNCs analyze this risk?
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Chapter 11: Management Decision and Control
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Q1) Surprisingly one of the least common approaches to personnel performance evaluation is the periodic appraisal of work performance.
A)True
B)False
Q2) An assessment center is an evaluation tool that is used to evaluate employees.
A)True
B)False
Q3) The internal control process differs from the external control in that the internal control:
A)Encourages harmony, responsiveness and sensibility
B)Focuses on the self, function, one's own group and one's own organization
C)Proves to be comfortable with waves, shifts and cycles, which are regarded as "natural"
D)Has a flexible attitude, willing to compromise and keep the peace
Q4) MNCs generally use direct controls to monitor performance on a:
A)Semi-annual basis
B)Monthly basis
C)Bi-monthly basis
D)Quarterly basis
Q5) Explain the relevance of TQM in decision making and controlling processes.
Page 13
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Chapter 12: Motivation Across Cultures
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Q1) _____ designs are job designs that blend personnel and technology.
A)Sociotechnical
B)Sociocultural
C)Socioengineering
D)Sociohostilic
Q2) The three basic elements in the process of motivation are needs, drives and rewards.
A)True
B)False
Q3) The tables from Hofstede's research show that _____ needs rank highest for professionals and managers.
A)Safety and social
B)Social and esteem
C)Esteem and self-actualization
D)Social and physiological
Q4) The three basic elements in the process of motivation are:
A)Needs, abilities and desires
B)Desires, drives and accomplishments
C)Needs, drives and goal attainment
D)Perceptions, attitudes and goal attainment
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Chapter 13: Leadership Across Cultures
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Q1) Which of the following leaders clarifies what needs to be done and provides both psychic and material rewards to those who comply with his/her directives?
A)Contingent reward leader
B)Active management-by-exception leader
C)Passive management-by-exception leader
D)Laissez-faire leader
Q2) Leader behaviors can be translated into three commonly recognized styles.These are:
A)Autocratic, suppressive and cooperative
B)Authoritarian, paternalistic and participative
C)Suppressive, paternalistic and team-oriented
D)Cooperative, team-oriented and participative
Q3) Which of the following are accurate depictions of the leadership style adopted by the managers of many Middle Eastern companies?
A)Highly authoritarian tone; rigid instructions
B)Less bureaucratic; more delegation of authority
C)Informal control mechanisms; routine checks on performance
D)Formal planning; decisions made at all levels of management
Q4) Describe the difference between transformational and transactional leadership.
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Chapter 14: Human Resource Selection and Development
Across Cultures
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Sample Questions
Q1) This approach to developing an expatriate compensation package entails giving the individual a series of options and letting the person decide how to spend the available funds.
A)Lump-sum method
B)Cafeteria approach
C)Localization approach
D)Balance-sheet approach
Q2) Research shows that small firms undertaking international business generally rely on:
A)Standard training programs
B)Strategic alliances
C)Trade zones
D)Uniform commercial codes
Q3) _____ are local managers who are hired by the MNC.
A)Inpatriates
B)Indigenous-nationals
C)Host-country nationals
D)Home-country nationals
Q4) Identify and explain the different sources that multinational corporations can use in their recruiting and selection procedures.
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