International Organizational Behavior
Final Exam Questions
Course Introduction
International Organizational Behavior examines how individuals and groups act within organizations operating across national borders. The course explores cultural, social, and structural factors that influence workplace behavior in a global context, emphasizing cross-cultural communication, motivation, leadership, decision-making, and conflict management. Students will analyze how multinational organizations address challenges such as diversity, adaptation to differing cultural norms, ethical dilemmas, and the integration of global teams. Through case studies and applied projects, the course aims to develop practical skills for managing and working effectively in culturally diverse environments.
Recommended Textbook
International Management Culture Strategy and Behavior 8th Edition by Fred Luthans
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14 Chapters
1055 Verified Questions
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Page 2
Chapter 1: Globalization and International Linkages
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Sample Questions
Q1) The following statements are true about the United States and Canada except:
A)The legal and business environments of the two countries are very different
B)Both countries are participants in NAFTA
C)Canada is the largest trading partner of the U.S
D)In recent years, Canadian firms have begun investing heavily in the U.S
Answer: A
Q2) The Central and Eastern European republics:
A)Have attempted to grow in terms of intercountry trade, spurred on by the progress toward free-market policies
B)Have attempted to decrease inflation by lowering the GDP
C)Are attempting to make a shift from centrally planned economies to market based economies
D)Are attempting to make a shift from a centrally planned economy to a mixed economy
Answer: C
Q3) Chaebols are very large, family held Korean conglomerates that have considerable political and economic power.
A)True
B)False
Answer: True
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Chapter 2: The Political, Legal, and Technological Environment
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Sample Questions
Q1) Describe the Foreign Corrupt Practices Act.What were the objectives of the FCPA?
Answer: The Foreign Corrupt Practices Act (FCPA) makes it illegal to influence foreign officials through personal payments or political contributions.The objectives of the FCPA were to stop U.S.MNCs from initiating or perpetuating corruption in foreign governments and to upgrade the image of both the United States and its businesses abroad.
Q2) Multinational corporations in China are faced with a multitude of problems except:
A)Government regulations
B)Questionable treatment
C)Market growth opportunities
D)Understanding what is needed from investors
Answer: C
Q3) Identify the correct statement on cellular infrastructure.
A)It is expensive to install
B)It is quick and relatively inexpensive to install
C)It is relatively inexpensive to install but takes time
D)It cannot be installed easily and cheaply in rural areas
Answer: B
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Page 4
Chapter 3: Ethics and Social Responsibility
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Sample Questions
Q1) What is meant by "fair trade"? Which products are involved in fair trade? What is the goal of the movement?
Answer: Fair trade refers to an organized social movement and market-based approach that aims to help producers in developing countries obtain better trading conditions and promote sustainability.Currently, the movement includes coffee, chocolate, fruits, and other agricultural products.Fair trade can help improve the quality of life for farming families by ensuring they receive a fair price for their products and fair working conditions.In addition, the movement encourages environmental sustainability.
Q2) Corporate social responsibility includes organizational actions that go beyond the requirements of the law and the direct interests of the firm.
A)True
B)False
Answer: True
Q3) Despite a heightened sensitivity in recent years, sexual harassment remains a minor social issue in Japan.
A)True
B)False
Answer: False
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5
Chapter 4: The Meanings and Dimensions of Culture
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Sample Questions
Q1) In a study of the differences in work values across cultures, it was found that U.S.managers place high value on deference to superiors, on company commitment and on the cautious use of aggressiveness and control.
A)True
B)False
Q2) Which of the following is an accurate values profile of successful U.S.managers?
A)High moral orientation, highly individualistic and a strong focus on organization compliance and competence
B)Highly pragmatic, highly individualistic and strong achievement and competence orientation
C)Highly pragmatic, high achievement and competence orientation, an emphasis on profit maximization, organizational efficiency and high productivity
D)Highly pragmatic, strong emphasis on size and growth and high value on competence and achievement
Q3) According to the text, the most masculine country is Germany.
A)True
B)False
Q4) Discuss Hofstede's Cultural Dimensions.
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Chapter 5: Managing Across Cultures
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Q1) In _____, one's social class is very important and these classes include the aristocracy, the upper bourgeoisie, the upper-middle bourgeoisie, the middle, the lower middle and the lower.
A)India
B)Great Britain
C)France
D)The United States
Q2) Firms with a polycentric predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.
A)True
B)False
Q3) What guidelines have to be followed by MNCs in order to tap the potential business opportunities in Russia?
Q4) An ethnocentric predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis.
A)True
B)False
Q5) What guidelines should MNCs must be aware of while doing business in China?
Q6) Describe the difference between parochialism and simplification.
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Chapter 6: Organizational Cultures and Diversity
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Sample Questions
Q1) Hofstede's research found that the national cultural values of employees have an insignificant impact on their organizational performance and these values are easily changed by the organization.
A)True
B)False
Q2) An example of a token group would be a group of male German bankers who are forecasting the economic outlook for a foreign investment.
A)True
B)False
Q3) Organizational culture is complex and cannot be defined as a set of norms regulating the behavior of the employees of a firm.
A)True
B)False
Q4) Change in the incubator culture is:
A)Slow and calculated
B)Almost non-existent
C)Moderate and methodological
D)Fast and spontaneous
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) In which step of the negotiation process does each group set forth its position on critical issues?
A)Persuasion
B)Exchanging task-related information
C)Interpersonal relationship building
D)Planning
Q2) In the context of negotiations, _____ starts with the negotiators identifying those objectives they would like to attain.
A)Planning
B)Interpersonal relationship building
C)Exchanging task-related information
D)Persuasion
Q3) The nonverbal method of communicating through the use of eye contact and gaze is:
A)Proxemics
B)Haptics
C)Oculesics
D)Chronemics
Q4) What is communication? What is the key to effective communication?
Q5) Define negotiation and explain the basic steps in the negotiation process.
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Chapter 8: Strategy Formulation and Implementation
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Q1) When the need for national responsiveness is high and the need for global integration is low, a(n) _____ strategy is appropriate.
A)Transnational
B)Multi-domestic
C)International
D)Globalization
Q2) MNCs that focus on the political imperative employ a worldwide strategy based on cost leadership, differentiation and segmentation.
A)True
B)False
Q3) When market liberalization is delayed:
A)It gives first movers a significant advantage over later entrants
B)First movers get clear, significant advantages in transitional markets
C)It gives later entrants a significant advantage over first movers
D)Substantial risks to premature entry are removed
Q4) In choosing a location, today's MNC has two primary considerations: the country and the specific locale within the chosen country.
A)True
B)False
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Chapter 9: Entry Strategies and Organizational Structures
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Q1) _____ is a management system in which important decisions are made at the top.
A)Centralization
B)Decentralization
C)Horizontal specialization
D)Vertical specialization
Q2) A structure under which global operations are organized on a geographic rather than a product orientation is referred to as a global area structure.
A)True
B)False
Q3) In most companies, mutual adjustment is achieved by assigning people to a specific project and having them meet face-to-face and work out a plan of action of designing the new product.
A)True
B)False
Q4) Explain alliances and joint ventures.
Q5) A joint venture is an agreement in which two or more partners own and control an overseas business.
A)True
B)False
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Chapter 10: Managing Political Risk, Government Relations, and Alliances
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Sample Questions
Q1) The seizure of businesses by a host country with little, if any, compensation to the owners is referred to as:
A)Nationalization
B)Expropriation
C)Dispossession
D)Removal
Q2) What are some of the advantages of international strategic alliances?
Q3) MNCs attempt to manage political risk through a quantification process, to derive an overall rating of the degree of political risk in a given jurisdiction.The factors that are quantified reflect all of the following except:
A)Political and economic environment
B)Domestic economic conditions
C)Social conditions
D)External economic conditions
Q4) Political risks can be broken down into three basic categories.These are:
A)Transfer risks, ownership risks and labor risks
B)Ownership risks, operational risks and economic risks
C)Operational risks, bureaucratic risks and transfer risks
D)Transfer risks, operational risks and ownership-control risks
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Chapter 11: Management Decision and Control
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Sample Questions
Q1) The Japanese make heavy use of a decision-making process called ringisei or decision making by consensus.
A)True
B)False
Q2) When local managers are inexperienced or not highly effective, decision making tends to be decentralized.
A)True
B)False
Q3) Top-level managers depend heavily on staff managers to handle much of the decision-making by decentralizing to their level.
A)True
B)False
Q4) As a TQM technique, rewards and recognition tend to be effective universally.
A)True
B)False
Q5) Direct controls are particularly important in international management because of the great expense associated with indirect methods.
A)True
B)False
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Chapter 12: Motivation Across Cultures
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Q1) Maslow postulated that everyone has five basic needs, which constitute a need hierarchy.In ascending order, beginning with the most basic, they are physiological, safety, social, esteem and self-actualization needs.
A)True
B)False
Q2) In the two-factor motivation theory, the job content factors which include achievement, recognition, responsibility, advancement and the work itself are referred to as:
A)Inducement factors
B)Reward factors
C)Hygiene factors
D)Motivators
Q3) In work motivation, factors internally controlled, such as responsibility, achievement and the work itself are referred to as:
A)Job process factors
B)Job inducement factors
C)Job content factors
D)Job context factors
Q4) What are the basic assumptions on which the hierarchy-of-needs theory rests?
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Chapter 13: Leadership Across Cultures
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Sample Questions
Q1) This leader avoids intervening or accepting responsibility for follower actions.
A)Passive management-by-exception leader
B)Laissez-faire leader
C)Contingent reward leader
D)Active management-by-exception leader
Q2) The leadership process used by Japanese managers places a strong emphasis on _____ goals.
A)Distinct
B)Indeterminate
C)Ambiguous
D)Specific
Q3) Paternalistic leadership uses work-centered behavior coupled with protective employee-centered concern.
A)True
B)False
Q4) U.S.managers believe that to motivate workers, it is necessary to satisfy their:
A)Higher-order needs
B)Safety needs
C)Lower-order needs
D)Physiological needs
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Chapter 14: Human Resource Selection and Development
Across Cultures
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Sample Questions
Q1) This is the acquisition of skills, knowledge and abilities that results in a relatively permanent change in behavior.
A)Learning
B)Development
C)Motivation
D)Controlling
Q2) Traditionally, what was the only selection criterion MNCs relied on for overseas assignments?
A)Training
B)Education
C)Previous experience
D)Technical competence
Q3) The two most common selection procedures used by MNCs are:
A)Assessment centers and tests
B)References and interviews
C)Application forms and assessment centers
D)Tests and interviews
Q4) Describe what is meant by the term "training".What factors influence a company's approach to training?
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Q5) What is a cultural assimilator? What do cultural assimilators try to accomplish?