International Business Management
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Course Introduction
International Business Management explores the complex dynamics of conducting business across national borders, focusing on the strategies, structures, and operational challenges faced by organizations in a globalized environment. The course examines topics such as global market entry, cross-cultural management, international marketing, global supply chain logistics, and the impact of economic, political, and legal environments on business decisions. Students will develop an understanding of how multinational companies manage diverse teams, navigate international regulations, adapt to cultural differences, and leverage global opportunities to achieve competitive advantage. Through case studies, simulations, and project work, the course equips students with essential skills for managing business operations in an increasingly interconnected world.
Recommended Textbook
Multinational Management A strategic approach 6th Edition by John B. Cullen
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15 Chapters
739 Verified Questions
739 Flashcards
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Page 2
Chapter 1: Multinational Management in a Changing World
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Sample Questions
Q1) What is corporate social responsibility? Why are firms trying to become socially responsible?
Answer: Answers will vary.Students should explain that companies need to pay attention to ethical issues such as climate change,environmental degradation and pollution,sweatshop conditions,and bribery.Students should understand that ignoring business ethics and corporate social responsibility issues can be perilous since multinationals can face significant backlash at home and in the international markets,suffering significant losses in terms of both reputation and sales.
Q2) 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.
Q3) The best definition of multinational management includes which of these factors:
A)The formulation of strategies and management systems.
B)Designed to take advantage of international opportunities.
C)And to respond to international threats.
D)All of the above.
Answer: D
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3
Chapter 2: Culture and Multinational Management
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Sample Questions
Q1) The range of feelings outwardly expressed in society refers to the cultural dimension of ________.
A)Uncertainty avoidance
B)Universalism vs.particularism
C)Neutral vs.affective
D)Diffuse vs.specific
Answer: C
Q2) Aspects of the business culture in China include all of these EXCEPT:
A)Business moves more slowly.
B)One should respect Chinese business etiquette.
C)It is important to praise individuals who excelled.
D)The Chinese value harmony and order.
Answer: C
Q3) Which of the 7d cultural dimensions represents the extent to which an individual's personal life is involved in his/her work relationships?
A)Neutral versus affective
B)Achievement versus ascription
C)Time orientation
D)Specific versus diffuse
Answer: D
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Chapter 3: The Institutional Context of Multinational Management
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Sample Questions
Q1) High rankings on the materialist index of some countries (e.g.,Hungary,India,Brazil)suggest that individuals in these countries are
A)Favor non material incentives.
B)Achievement oriented.
C)Motivated by non-monetary rewards.
D)Hinduism.
Answer: B
Q2) What is social inequality? What implications does social inequality have for multinationals?
Answer: Answers will vary but should mention that social inequality is the degree to which people have privileged access to resources and positions within societies.In high-social-inequality societies,a few individuals have the ability to control and use important resources as sources of control.This access to resources also enables the select few to use this power to gain access to even more power and to use it,in turn,to perpetuate inequality.
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Chapter 4: Managing Ethical and Social Responsibility
Challenges in Multinational Companies
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Sample Questions
Q1) Compare and contrast prescriptive codes of ethics with proscriptive codes.
Q2) Multinationals that provide fair wages to their local employees are following which type of moral language?
A)Avoiding harm
B)Ethical behavior
C)Rights and duties
D)Social contract
Q3) Discuss some of the pressures for ethical convergence.What are some implications for multinational management?
Q4) Prescriptive rules in codes of conduct
A)Tell multinational companies or managers what they should do.
B)Are forms of moral language.
C)Tell multinational companies or managers what they cannot do.
D)All of the above
Q5) Ethical relativism
A)Argues that one should impose the home country's ethical system everywhere.
B)Implies that ethics are relative to the type of philosophy used.
C)Means that each society's view of ethics must be considered legitimate.
D)Means that the same ethical principles are universal.
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Chapter 5: Strategic Management in the Multinational
Company: Content and Formulation
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Sample Questions
Q1) This is considered to be a popular and controversial way to address internal cost inefficiencies.
A)Insourcing
B)Outsourcing
C)Related diversification
D)Unrelated diversification
Q2) Discuss each of Porter's five forces model.What information can a multinational obtain from Porter's five forces industry analysis?
Q3) The GE Portfolio matrix
A)Is the same as the Boston Consulting Group matrix.
B)Contains four cells based on industry and business strength.
C)Can be used to assess business level strategies.
D)Contains nine cells based on industry strength and business competitive position.
Q4) Offensive strategies
A)Are examples of basic generic strategies.
B)Are direct targeting/attacking of rivals.
C)Are attempts to reduce the risk of being attacked.
D)Are used to convince other firms to seek other targets.
Q5) Describe the low cost strategy as compared to the differentiation strategy.
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Chapter 6: Multinational and Entry-Mode Strategies:
Content and Formulation
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Sample Questions
Q1) If strategists in a firm believe that centralizing key activities such as R&D is necessary to reduce coordination costs and to achieve economies of scale,they are more likely to choose
A)An international strategy.
B)A transnational strategy.
C)A local strategy.
D)None of the above
Q2) Responding to differences in the markets in all the countries in which a company operates is
A)The global-local dilemma.
B)The best strategy for success for a multinational.
C)The local-responsiveness solution.
D)The global solution.
Q3) Foreign direct investment
A)Is an entry-mode strategy.
B)Means that a multinational owns, in part or in whole, an operation in another country.
C)Symbolizes the highest rate of internationalization.
D)All of the above
Q4) Discuss some key issues to consider when choosing an entry-mode strategy.
Page 8
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Chapter 7: Small Businesses and International Entrepreneurship
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Sample Questions
Q1) Which of the following is NOT a common customer contact technique used by small firms to get find customers?
A)Trade shows
B)Industry advisory boards
C)Government sponsored trade missions
D)Catalog expositions
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) The liabilities of size for small businesses imply that
A)Small businesses can grow as a result of going international.
B)Being small often means it may be more difficult to obtain necessary resources.
C)Small size creates only limited liability.
D)Small and new businesses can only succeed by exporting.
Q4) Describe the Small Business Stage Model.
Q5) Why are small businesses important for most economies?
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Chapter 8: Organizational Design for Multinational Companies
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Sample Questions
Q1) All of the following statements are true about the worldwide matrix structure EXCEPT
A)To balance the benefits produced by geographic and product structures and to coordinate a mixture of product and geographic subunits, some multinationals create a worldwide matrix structure.
B)Unlike most hybrid organizations, the worldwide matrix structure is a symmetrical organization.
C)It has unequal lines of authority for product groups and for geographic divisions.
D)The matrix structure works well only when there are near equal demands from the environment for local adaptation and for product standardization with its associated economies of scale.
Q2) When exports become a significant percentage of company sales and a company wishes greater control over its export operations,managers often create a separate A)Export department.
B)Functional department.
C)Product department.
D)Liaison office.
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Page 10
Chapter 9: International Strategic Alliances: Management and Design
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Sample Questions
Q1) The confidence that the partner will behave with goodwill and trust is A)Commitment.
B)Credibility trust.
C)Benevolent trust.
D)Calculative commitment.
Q2) The anchor partner in a strategic alliance refers to
A)A partner that is very stable and anchors the relationship.
B)The strongest partner in the relationship.
C)The partner who initiates the relationship.
D)A partner that fails to deliver their share of funding.
Q3) What are some of the difficulties of assessing IJV or ICA performance? How do these differ for companies with different strategic goals?
Q4) The psychological identification with a relationship in a strategic alliance and the pride of association with the partner and the alliance is known as A)Calculative commitment.
B)Credibility trust.
C)Benevolent trust.
D)Attitudinal commitment.
Q5) Compare and contrast the three main types of strategic alliances.
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Chapter 10: Multinational E-Commerce: Strategies and Structures
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Sample Questions
Q1) Which of the following strategies is a pure e-business least likely to be concerned with when facing e-commerce challenges?
A)Developing information and management systems to respond to rapid growth
B)Attracting and retaining e-commerce-capable talent
C)Altering HR programs to suit the different skill requirements of e-commerce employees
D)Maintaining rapid decision making, creativity, innovation, and flexibility
Q2) The major opportunities of e-commerce globalization include all of the following EXCEPT
A)Cost reduction.
B)Efficiencies.
C)Speed of access and convenience.
D)Access to new sources of financing.
Q3) The internet has enabled the emergence of a new form of multinational,known as A)Internet Service Providers.
B)Virtual enablers.
C)Internet businesses.
D)Born-globals.
Q4) Discuss some of the technical capabilities that are needed for multinational e-commerce.
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Chapter 11: International Human Resource Management
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Sample Questions
Q1) Home country nationals are
A)Expatriate employees who come from the parent's home country.
B)Employees who come from a different country where he/she is working.
C)Expatriate employees which come from the parent's home country.
D)Employees from foreign country who work in the country where the host company is located.
Q2) Discuss the options available for expatriate compensation.Consider how these options might be used for a transnational and a multidomestic company.
Q3) All of the following are benefits of international assignments EXCEPT
A)International assignments help managers acquire skills necessary to develop successful strategies in a global context.
B)Expatriate assignments help a company coordinate and control operations dispersed geographically and culturally.
C)International assignments provide companies access to preferential quotas and duties.
D)Global assignments provide important strategic information.
Q4) Identify the components of HRM and describe how they differ for IHRM.
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Chapter 12: Hrm in the Local Context: Knowing When and How to Adapt
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Sample Questions
Q1) A study of compensation practices in ten countries revealed that
A)Pay incentives are important.
B)Pay should be contingent on group performance.
C)Incentives should be significant amount of pay.
D)All the above are true
Q2) The practice of recruiting friends or relatives of those already employed is which form of recruiting?
A)Front gate recruiting
B)Walk-ins
C)Backdoor recruiting
D)Internal recruiting
Q3) Japanese compensation systems base pay raises mostly on A)Marital status and family size.
B)Seniority.
C)Merit.
D)Position.
Q4) You have been given the assignment to set up a training program for first level managers in a formerly government-owned eastern European company.How would you go about developing a curriculum? Why? To view
Chapter 13: International Negotiation and Cross-Cultural Communication
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Q1) Which of the following statements regarding formal communication is FALSE?
A)U.S.Americans have the highest degree of formal communication.
B)Compared to the U.S., most other business cultures acknowledge rank and titles when addressing each other.
C)There is more formality of dress for both genders for most other cultures compared to the U.S.
D)All of the above are true.
Q2) Discuss the steps in the negotiation process.Which step is at the heart of the process and why?
Q3) Proxemics
A)Refers to the use of body movements to communicate.
B)Represents the degree of formality in communication styles.
C)Means communicating with and without words.
D)Focuses on how people use space to communicate.
Q4) What is the Whorf hypothesis? Explain.
Q5) Identify some cultural differences in body movements (kinesics).How might these influence a negotiation session?
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Q6) Provide an example of how nonverbal negotiation tactics may be interpreted differently by people of varying cultural backgrounds.
Chapter 14: Motivation in Multinational Companies
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Sample Questions
Q1) An expatriate finds that one of his subordinates regularly jokes about a minority group in the country.She decides to ignore the jokes hoping that the subordinate will eventually stop such jokes.Which aspect of reinforcement theory is she using?
A)Avoidance
B)Extinction
C)Punishment
D)Operant conditioning
Q2) Esteem needs refer to
A)Basic survival needs such as food, water and shelter.
B)Safety and avoidance of pain and life-threatening situations.
C)Being loved and having friendship.
D)Focus on respect and feelings of self-worth.
Q3) The importance of work refers to
A)how central work is in an individual's life.
B)The degree of obligations to work in the life of an individual.
C)The functions that work plays in people's lives.
D)People's expectations from work.
Q4) Discuss equity theory.What are the implications for multinationals?
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Page 16
Chapter 15: Leadership and Management Behavior in Multinational Companies
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Sample Questions
Q1) When managers use rewards or punishment to influence their subordinates,they are engaging in
A)Rewards oriented leadership.
B)Transformational leadership.
C)Transactional leadership.
D)Charismatic leadership.
Q2) Discuss whether transformational leadership qualities are culture free.That is,are transformational leaders similar regardless of cultural background or are there different types of transformational leaders for each cultural group?
Q3) Building support for ideas and networking and using friendships involve the use of which influence tactics?
A)Assertiveness
B)Friendliness
C)Sanctioning
D)Coalitions
Q4) From the perspective of the subordinates,discuss why culturally inappropriate leadership behaviors might be de-motivating.
Q5) Compare and contrast U.S.and Japanese perspectives on leadership behavior.
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