Global Management Exam
Answer Key
Course Introduction
Global Management explores the strategies, structures, and processes that organizations use to operate effectively across international borders. The course examines cultural, economic, and regulatory differences that impact managerial decision-making in a global context, emphasizing topics such as cross-cultural communication, international leadership, global supply chains, and ethical challenges. Students will learn to analyze global business environments, develop adaptive management practices, and design strategies to compete successfully in diverse markets while considering sustainability and social responsibility.
Recommended Textbook
International Management Culture Strategy and Behavior 10th Edition by Fred Luthans
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14 Chapters
1051 Verified Questions
1051 Flashcards
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Chapter 1: Globalization and International Linkages
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76 Verified Questions
76 Flashcards
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Sample Questions
Q1) _____ is the term used to indicate the amount invested in property,plant,and equipment in another country.
A) Exporting
B) Foreign direct investment
C) Importing
D) Trade imperfection
Answer: B
Q2) North American Free Trade Agreement (NAFTA)members are better integrated as a single market than the European Union (EU)or the allied Asian countries.
A)True
B)False
Answer: False
Q3) U.S.firms maintain particularly dominant global positions in all of the following industries except:
A) telecommunications.
B) biotechnology.
C) media.
D) textiles.
Answer: D
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Page 3
Chapter 2: The Political, Legal, and Technological Environment
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75 Verified Questions
75 Flashcards
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Sample Questions
Q1) In the context of telecommunications,governments are accepting the belief that the only way to attract foreign investment and know-how in telecommunications is to:
A) cede control to private industry.
B) get cheaper service providers.
C) get cheap and efficient labor.
D) get private partners.
Answer: A
Q2) The _____ holds that there must be mutual respect for the laws,institutions,and the government of other countries in the matter of jurisdiction over their own citizens.
A) doctrine of protectionism
B) doctrine of civility
C) doctrine of mutual understanding
D) doctrine of comity
Answer: D
Q3) The most common form of totalitarian government is communist totalitarianism.
A)True
B)False
Answer: True
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Chapter 3: Ethics, Social Responsibility, and Sustainability
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75 Verified Questions
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Sample Questions
Q1) An aspect that has become a key tenet of Patagonia's strategy is social sustainability with an emphasis on employee welfare.
A)True
B)False
Answer: True
Q2) _____ can be defined as the actions of a firm to benefit society beyond the requirements of the law and the direct interests of the firm.
A) Corporate social responsibility
B) Law
C) Governance
D) Ethics
Answer: A
Q3) The Foreign Corrupt Practices Act makes it illegal for U.S.companies and their managers to attempt to influence foreign officials through personal payments or political contributions.
A)True
B)False
Answer: True
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Chapter 4: The Meanings and Dimensions of Culture
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Sample Questions
Q1) According to Hofstede,countries with a high _____ encourage individuals to be independent decision makers and to define achievement in terms of recognition and wealth.
A) power distance
B) masculinity index
C) uncertainty avoidance
D) individualism score
Q2) In the context of the values in transition,the stateside Japanese managers,Japanese managers working for Japanese firms in the United States,believed that unconditional tenure in one organization was of major importance.
A)True
B)False
Q3) In the context of Dutch researcher,Fons Trompenaars's relationship orientations,cultures with high universalism focus more on relationships and trust than on formal rules.
A)True
B)False
Q4) In the context of values in transition,collectivism is on the rise in Japan.
A)True
B)False
Page 6
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Chapter 5: Managing Across Cultures
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Sample Questions
Q1) Which of the following cultural characteristics should be kept in mind when conducting business in Russia?
A) Building personal relationships with partners is important.
B) Giving gifts to those with whom one wants to transact business is regarded as bribery.
C) Russian expatriates score high on business practices.
D) Businesspeople should try and settle business deals quickly.
Q2) When conducting business in China,one must realize that individualism is highly prized.
A)True
B)False
Q3) Advertising in _____ is predominantly emotional,dramatic,and symbolic.
A) Japan
B) China
C) Germany
D) France
Q4) A company with a geocentric predisposition tries to integrate a global systems approach to decision making.
A)True
B)False
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Chapter 6: Organizational Cultures and Diversity
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Sample Questions
Q1) As the diversity of a group increases,the likelihood of all members perceiving things in the same way increases sharply.
A)True
B)False
Q2) Organizational cultures of MNCs are shaped by a number of factors,including the cultural preferences of the leaders and employees.
A)True
B)False
Q3) Which of the following is the identity dimension of corporate culture?
A) To put the demands of the job before the needs of the individual
B) To put the needs of the individual before the needs of the job
C) To identify with and uphold the expectations of the employing organizations
D) To strive for accuracy and attention to detail
Q4) Multicultural teams are most effective when they are assigned to routine tasks.
A)True B)False
Q5) Organizational climate refers to the overall atmosphere of an enterprise.
A)True
B)False
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Chapter 7: Cross-Cultural Communication and Negotiation
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Sample Questions
Q1) In high-context societies,the succinct style of communication is very common.
A)True
B)False
Q2) Define negotiation and explain the basic steps in the negotiation process.
Q3) Researchers have found that the contextual style of communication is often associated with:
A) low-power-distance, collective, high-context cultures.
B) low-power-distance, individualistic, high-context cultures.
C) high-power-distance, individualistic, low-context cultures.
D) high-power-distance, collective, high-context cultures.
Q4) In cultures with monochronic time schedules,schedules are subordinated to personal relationships.
A)True
B)False
Q5) The transmission of information from manager to subordinate is referred to as:
A) lateral communication.
B) upward communication.
C) downward communication.
D) horizontal communication.
Q6) Explain the wide variety of tactics used in international negotiation.
Page 9
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Chapter 8: Strategy Formulation and Implementation
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Sample Questions
Q1) The production and distribution of products and services of a homogeneous type and quality on a worldwide basis is called _____.
A) global integration
B) administrative coordination
C) horizontal specialization
D) market standardization
Q2) A(n)_____ approach to strategy formulation and implementation is one in which a multinational corporation makes strategic decisions based on the merits of the individual situation rather than using a predetermined economic or political strategy.
A) administrative coordination
B) bureaucratic coordination
C) value-added
D) functional
Q3) Is there a growing need for strategic management among multinational corporations? If so,why?
Q4) Describe the difference between global integration and national responsiveness.What is the principle advantage of each strategy?
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10
Chapter 9: Entry Strategies and Organizational Structures
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Sample Questions
Q1) Which of the following statements is true about cultural control mechanism in a global area division?
A) Cultural control mechanism is treated like all other multinational company (MNC) structural divisions.
B) Local subsidiary culture is often the most important.
C) Cultural control mechanism is possible for some companies but not always necessary.
D) Culture must support the shared decision making.
Q2) Which of the following provides the most benefits when the need for product specification or differentiation is high?
A) International division
B) Global product division
C) Global area division
D) Global functional division
Q3) Describe the commonly cited advantages of alliances and joint ventures.
Q4) An international alliance is composed of two or more firms from different countries.
A)True
B)False
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Chapter 10: Managing Political Risk, Government Relations, and Alliances
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Sample Questions
Q1) Price controls,financing restrictions,export commitments,taxes,and local-sourcing requirements are examples of _____.
A) ownership-control risks
B) operational risks
C) transfer risks
D) functional risks
Q2) _____ risks stem from government policies that limit the transfer of capital,payments,production,people,and technology in or out of a country.
A) Operational
B) Bureaucratic
C) Transfer
D) Expropriation
Q3) Macro risk issues often take such forms as industry regulations,taxes of specific types of business activity,and various restrictive local laws.
A)True
B)False
Q4) Explain and give examples of the three basic categories of political risks.
Q5) Explain relative bargaining power analysis.
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Chapter 11: Management Decision and Control
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Sample Questions
Q1) Two common ways of looking at how multinational companies (MNCs)control operations are:
A) determining whether the organization uses accounting or strategic controls and by choosing whether the enterprise uses simple or complex controls.
B) by looking at the ways in which the organization uses hierarchical and bureaucratic controls and by looking at the ways in which the organization uses external or internal controls.
C) choosing whether the enterprise uses simple or complex controls and by determining whether the organization uses financial or strategic controls.
D) determining whether the enterprise chooses to use internal or external control and by looking at the ways in which the organization uses direct and indirect controls.
Q2) Controls that are generally used by multinational companies (MNCs)to monitor performance on a monthly basis are _____.
A) direct
B) indirect
C) external
D) internal
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Chapter 12: Motivation Across Cultures
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Sample Questions
Q1) Which of the following is a true statement of the to the quality of work life (QWL)in Japan?
A) In Japan, there is strong uncertainty avoidance.
B) The feminity index for Japan is high.
C) Japanese workers are always given a say in what goes on in the organization.
D) The Japanese do not rate money as an important motivator
Q2) A number of research efforts have been undertaken to replicate the two-factor theory,and in the main,they _____.
A) cast doubt on Herzberg's findings
B) support Herzberg's findings
C) are unable to either refute or support Herzberg's findings
D) prove Herzberg's findings to be utterly worthless
Q3) Most research in international human resource management has been _____.
A) context-oriented
B) content-oriented
C) procedure-oriented
D) process-oriented
Q4) The value of goal-setting theory remains intact across cultures.
A)True
B)False
Page 14
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Chapter 13: Leadership Across Cultures
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Sample Questions
Q1) Discuss Theory X,Theory Y,and Theory Z.
Q2) This leadership style is widely used by Theory X managers,who believe that final decisions should be in the hands of the higher-level employees and that a continued focus on the task is compatible with the kind of people they are dealing with.
A) Authoritarian
B) Suppressive
C) Paternalistic
D) Laissez-faire
Q3) These leaders expect everyone to work hard; in turn,the employees are guaranteed employment and given security benefits such as medical and retirement programs.
A) Participative
B) Paternalistic
C) Autocratic
D) Authoritarian
Q4) A leader who monitors follower performance and takes corrective action when deviations from standards occur is referred to as a transactional leader.
A)True
B)False
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Page 15
Chapter 14: Human Resource Selection and Development
Across Cultures
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Sample Questions
Q1) The improved education of many populations around the world gives multinational corporations (MNCs)more options when considering international human resource needs.
A)True
B)False
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) Face-to-face human contact has lost its importance as a means of communication because of the growing prevalence of e-mail,web- and teleconferencing,and the increasing incidence of subcontracting and outsourcing.
A)True
B)False
Q4) Discuss the various approaches that can be used to formulate a compensation package.
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Q5) What is a cultural assimilator? What do cultural assimilators try to accomplish?