Global Strategic Management
Pre-Test Questions
Course Introduction
Global Strategic Management explores the formulation and implementation of business strategies in an international context, emphasizing how organizations can achieve sustainable competitive advantage across borders. The course covers key concepts such as global market entry, competitive analysis, cross-cultural management, international alliances, and the impact of geopolitical, economic, and regulatory environments on strategic decisions. Students will analyze real-world cases and develop critical thinking skills to navigate complex global markets and devise strategies that address challenges and opportunities in a rapidly evolving global landscape.
Recommended Textbook
Multinational Management A strategic approach 6th Edition by John B. Cullen
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15 Chapters
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739 Flashcards
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Page 2
Chapter 1: Multinational Management in a Changing World
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Sample Questions
Q1) Anything that a government might do to affect a multinational adversely is known as
A)Exchange rate risk.
B)Business risk.
C)Sales risk.
D)Political risk.
Answer: D
Q2) Discuss some reasons why reductions in world trade barriers are driving the world toward a global economy.
Answer: Answers will vary.Students should mention that lower trade barriers allow companies from different countries to buy,sell,and invest more easily and profitably.
Q3) Discuss the differences between foreign trade and foreign direct investment.
Answer: Answers will vary but should demonstrate students' understanding that foreign trade is simply buying and selling from companies in foreign countries,whereas FDI leads to deeper connections between firms from various countries.
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3
Chapter 2: Culture and Multinational Management
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Sample Questions
Q1) A new expatriate manager located in India reports to you that all of her subordinate local managers lack initiative and will only do what she tells them to do.You realize that most Indian managers expect superiors to tell them what to do.You advise her of this,but also caution the new manager to avoid:
A)Rationalization.
B)Stereotyping.
C)Uncertainty avoidance.
D)Ethnocentrism.
Answer: B
Q2) Why do the rankings on some cultural dimensions such as individualism differ between the 7d and Hofstede models?
Answer: Answers will vary but should demonstrate that students are aware that Trompenaars drew upon more recent data and used a different methodology.
Q3) What are cultural paradoxes? Give one example.
Answer: Answers will vary.Students' examples should demonstrate that there are exceptions to the broad generalizations about a country's culture,which are known as cultural paradoxes,where individual situations seem to contradict cultural prescriptions.
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Chapter 3: The Institutional Context of Multinational Management
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Sample Questions
Q1) Which of the following systems encourage the pursuit of collective goals such as social equality and solidarity?
A)Economic system
B)Market economy
C)Command economy
D)Capitalist economy
Answer: C
Q2) An increased emphasis on quality of life over achievement oriented norms is typical of
A)Pre-industrial societies.
B)Industrial societies.
C)Post-industrial societies.
D)None of the above
Answer: C
Q3) When industrialization is outward oriented,foreign exchange is
A)Encouraged and exporting is promoted.
B)Discouraged and exporting is not favored.
C)Not welcomed.
D)Used to fund governments in power.
Answer: A
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Chapter 4: Managing Ethical and Social Responsibility
Challenges in Multinational Companies
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Sample Questions
Q1) Ethical dilemmas are usually
A)Easy to resolve.
B)Clear and unambiguous.
C)Unclear and ambiguous.
D)Removed with a formal code of ethics.
Q2) A multinational manager decides to allow hiring of children for a foreign plant as such practices are accepted in the country.Which ethical principle is she basing her decision on?
A)Ethical universalism
B)Convenient ethical universalism
C)Ethical relativism
D)None of the above
Q3) The world seems to be moving towards transnational ethics because:
A)Globalization dramatically increases contact among people from different ethical and cultural systems.
B)This contact creates pressure for the development of new transnational agreements regarding business practices.
C)International trade and trading blocs such as the EU and NAFTA are growing.
D)All of these reasons.
Q4) Compare and contrast prescriptive codes of ethics with proscriptive codes.
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Chapter 5: Strategic Management in the Multinational
Company: Content and Formulation
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Sample Questions
Q1) Which of the following forces is NOT one of the forces considered in Porter's five forces analysis?
A)Degree of competition among existing competitors
B)Degree of governmental regulation in the industry
C)Threat of new entrants in the industry
D)Bargaining power of buyers in the industry
Q2) Competitive advantage
A)Represent the basic ways that companies can provide superior value to customers.
B)Is one of the basic strategies.
C)Occurs when a company can outmatch its rivals in attracting and maintaining its customers.
D)Is best achieved using a low cost strategy.
Q3) In related diversification
A)Companies acquire businesses in any country.
B)Companies acquire businesses in any industry.
C)Companies acquire businesses that are similar in some way to their core business.
D)None of the above
Q4) Describe the low cost strategy as compared to the differentiation strategy.
Page 7
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Chapter 6: Multinational and Entry-Mode Strategies:
Content and Formulation
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Questions
Q1) When deciding on an entry-mode strategy,cultural distance is
A)The physical distance between two countries.
B)Not the distance between an organization's culture and the local national culture.
C)Similar to the geographic distance.
D)None of the above
Q2) What is political risk? Discuss some of the aspects of political risk assessment.How can multinationals use political risk assessment?
Q3) Which of the following statements regarding exporting is FALSE?
A)Exporting is the easiest of entry-mode strategies.
B)Export can be of the passive form where overseas orders are treated like domestic orders.
C)Export can be indirect where companies rely on intermediaries to sell overseas.
D)Because it is the easiest form of going international, exports are not as important to the US economy.
Q4) Discuss some general strategic considerations regarding multinational strategy when choosing a entry-mode strategy.
Q5) Describe the global-local dilemma.When is each solution most appropriate?
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Chapter 7: Small Businesses and International Entrepreneurship
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Sample Questions
Q1) Identify two or three small business barriers to internationalization.If you were a recently hired manager of a small business facing great opportunities in a foreign market,how would you go about overcoming these barriers.
Q2) A strategic competitive advantage for breaking into the established pattern of commercial activity is a/an
A)Low cost strategy.
B)Differentiation Strategy.
C)Entry wedge.
D)Participation strategy.
Q3) All of the following are first mover advantages EXCEPT
A)First mover advantages gives the company first access to natural resources.
B)First mover advantages gives the company first access to social resources.
C)First mover advantages reduce switching costs.
D)All of the above are first mover advantages.
Q4) International sales intensity represents
A)A significant size barrier to internationalization.
B)The amount of international sales as a proportion of total sales.
C)The amount of local sales as a proportion of international sales.
D)Is more relevant for larger businesses.
Page 9
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Chapter 8: Organizational Design for Multinational Companies
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Sample Questions
Q1) Which of the following structures best support strategies that emphasize global products and rationalization?
A)The functional structure
B)The matrix structure
C)The geographic structure
D)The product structure
Q2) The type of subsidiary that supports a multinational firm strategy based on location advantages is a/an
A)Export department.
B)Minireplica subsidiary.
C)Transnational subsidiary.
D)International division.
Q3) The minireplica subsidiary
A)Copies the structure and strategy of companies located in the same country.
B)Mostly copies the structure and strategy of the parent company.
C)Replicates only minor parts of the parent's production technology.
D)Copies the structure of small foreign firms.
Q4) What are hybrid structures? What are the costs and benefits of having a hybrid structure?
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Q5) What are control systems? Pick two control systems and describe how they work.
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Chapter 9: International Strategic Alliances: Management and Design
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Q1) Which management structure is popular in developing countries?
A)Dominant
B)Shared
C)Split
D)Rotating
Q2) What are the different management structures possible for strategic alliances? Pick two of these management structures and discuss when they are most appropriate.
Q3) What are some of the difficulties of assessing IJV or ICA performance? How do these differ for companies with different strategic goals?
Q4) When applied to a strategic alliance relationship,the concept of trust includes
A)Confidence that the partner will deliver.
B)Confidence that the partner will behave with good will.
C)Confidence that the partner will engage in fair exchange.
D)All of the above
Q5) What are the different kinds of commitment needed in a strategic alliance? Explain.
Q6) Under what conditions should a firm choose one of the various management structures available for a strategic alliance?
11
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Chapter 10: Multinational E-Commerce: Strategies and Structures
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Sample Questions
Q1) Companies such as manufacturers that sell directly to consumers (Dell),and companies that provide online shipping services (FedEx,UPS)are all examples of which of the following?
A)Web customers
B)B2B
C)C2B
D)B2C
Q2) What is a brick and mortar part of a company? What are some benefits of integrating the brick and mortar part of an organization with their Internet business? Why do some companies such as Barnes and Nobles still choose to have their Internet division operate independently from their brick and mortar part?
Q3) Which of the following is NOT one of the ways to modify a website to make it global?
A)All company websites should first show the corporate website in the home country.
B)Provide a prominent list of languages used by the company's web site
C)Provide the firm's privacy statements in all local languages
D)Provide a culturally-sensitive website
Q4) Discuss some of the basic steps to building a successful e-commerce strategy.
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Chapter 11: International Human Resource Management
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Sample Questions
Q1) According to the text,which of the following is NOT one of the strategies used to allow successful repatriation of expatriates?
A)Provide a strategic purpose for the repatriation
B)Allow the expatriate to return when he/she is ready to do so
C)Provide training and preparation for the return
D)Establish a team to aid the expatriate
Q2) Extra money paid to expatriates for particularly difficult posting due to issues such as high risk or poor living conditions is known as
A)Foreign service premiums.
B)Hardship allowance.
C)Relocation allowances.
D)Home-leave allowances.
Q3) Which of the following statements about flexpatriates is FALSE?
A)Flexpatriates are those workers who travel on short notice for shorter duration.
B)Flexpatriate assignments usually last longer than expatriate assignments.
C)Flexpatriates provide flexibility as the company can send someone on numerous and much shorter duration assignments.
D)All of the above are true.
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Chapter 12: Hrm in the Local Context: Knowing When and How to Adapt
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Q1) All of the following are true about unions in England,Germany,France,and the U.S.EXCEPT
A)British unions developed with strong government interference.
B)German unions developed in harmony with the government and corporations.
C)French unions started much later and developed more slowly than did British or German unions.
D)US union membership has declined significantly since the 1940s.
Q2) The measure that considers the proportion of workers who belong to unions is known as
A)Union-membership scope.
B)Craft union density.
C)Union-membership density.
D)Trade union density.
Q3) Which of the following is NOT one of the factors determining the resource pool of a country as discussed in the text?
A)The quantity, quality, and accessibility of raw material
B)The quantity, quality and cost of personnel available
C)The training and development system available
D)The cost and amount of capital available to firms
Page 14
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Chapter 13: International Negotiation and Cross-Cultural Communication
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Q1) Identify and describe some common dirty tricks in international negotiation.What can be done to counteract these dirty tricks?
Q2) All of the following is true about the persuasion stage EXCEPT
A)Each side in the negotiation attempts to get the other side to agree to its position.
B)It is the heart of the negotiation processes.
C)Numerous tactics are available to international negotiators to persuade the other side.
D)The emphasis and mix of tactics do not vary by the cultural background of the negotiators.
Q3) If negotiators are using deliberate deception as a dirty tricks,the best way to deal with the deception is
A)Not to make any concessions.
B)To ignore the ploy and focus on the agreement.
C)To not reveal your negotiation plans.
D)To point out directly what you believe is happening.
Q4) Identify some cultural differences in body movements (kinesics).How might these influence a negotiation session?
Q5) What is the Whorf hypothesis? Explain.
Page 15
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Chapter 14: Motivation in Multinational Companies
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Q1) What are the three major principles of allocating rewards? Discuss how each principle works.Why is equality preferred in more collectivistic cultures while individualistic cultures favor equity?
Q2) Some of the detrimental effects of social loafing can be reduced if
A)Individuals are held responsible for performance.
B)Groups are held responsible for performance.
C)The group leader is held responsible for performance.
D)None of the above
Q3) A crucial difference between the US job characteristics model and the European STS approach is
A)The US model focuses on core job characteristics, while the European model focuses on tasks.
B)The US model focuses on individuals, while the European model focuses on work teams.
C)The US model focuses on work teams, while the European model focuses on individuals.
D)There are no differences between the US job characteristics model and the European STS approach.
Q4) Discuss equity theory.What are the implications for multinationals?
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Chapter 15: Leadership and Management Behavior in Multinational Companies
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Q1) Path-Goal Theory
A)Is a popular US contingency theory.
B)Identifies four types of leadership styles that a manager might choose depending on the situation.
C)Key contingency or situational factors that determine the choice of the best leadership styles are: the nature of the subordinates and the characteristics of the subordinates' tasks.
D)All of the above
Q2) Which statement regarding fundamental attribution errors is true?
A)In Western nations, people tend to make external attributions.
B)In Eastern nations, people tend to make internal attributions.
C)In Western nations, people tend to make internal attributions.
D)In Eastern nations, people tend to make external attributions.
Q3) Explaining a person's behavior based on factors outside the person and beyond the person's control (e.g.,natural disasters,illness,faulty equipment,etc.)is a/an
A)Internal attribution.
B)External attribution.
C)Fundamental attribution error.
D)Attribution effect.
Page 17
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