Course Introduction
Managing Across Borders
Pre-Test Questions
Managing Across Borders explores the complexities and challenges of operating in a global business environment. The course delves into cross-cultural management, international strategy, and the dynamics of leading multinational teams. Students examine the impact of cultural, economic, legal, and political differences on organizational behavior and decision-making. Through case studies and interactive exercises, participants develop skills in communication, negotiation, and leadership necessary to effectively manage and collaborate across geographical boundaries. This course is ideal for those aiming to understand global markets and become effective leaders in multinational organizations.
Recommended Textbook
Multinational Management A strategic approach 6th Edition by John B. Cullen
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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) What are some of the reasons why globalization and free trade are being criticized? Do you think that free trade is helping all countries? Why or why not?
Answer: Answers will vary.Some criticisms students might mention are that globalization favors the developed nations because free trade makes it more difficult for poorer nations to compete in a nonregulated world;that free trade encourages large multinational companies to move environmentally damaging production to poorer and often environmentally sensitive countries;and that free trade might lead to the migration of jobs from higher-wage countries to lower-wage countries.
Q2) 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.
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3
Chapter 2: Culture and Multinational Management
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Sample Questions
Q1) In countries where it is believed that nature dominates people,
A)Managers are less likely to be fatalistic.
B)Managers emphasize planning and scheduling.
C)Managers actively try to change situations.
D)Managers believe that they must accept situations rather than changing them.
Answer: D
Q2) The achievement versus ascription dimension addresses
A)The extent to which an individual's life is involved with work.
B)The manner by which a society gives status.
C)The way a culture deals with the past, present, and future.
D)The belief people have in controlling their fate.
Answer: B
Q3) Training for conformity and obedience,with valuations based on compliance and trustworthiness characterize countries with
A)Low power distance.
B)High power distance.
C)High individualism.
D)Short term orientations.
Answer: B
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Page 4
Chapter 3: The Institutional Context of Multinational Management
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Sample Questions
Q1) When industrialization is inwardly oriented,local industries are promoted to satisfy the
A)Need to export.
B)Local population.
C)Requirements of multinational companies.
D)Domestic market and preserve foreign exchange.
Answer: D
Q2) Postindustrial societies are typically characterized by the dominance of
A)Service and manufacturing sectors.
B)Service sectors.
C)Manufacturing sectors.
D)Agricultural sectors.
Answer: B
Q3) The national context of a society is made up of
A)The national and business cultures of that society.
B)The social institutions of that society.
C)The national cultures and social institutions of that society.
D)The national cultures of that society.
Answer: C
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Chapter 4: Managing Ethical and Social Responsibility
Challenges in Multinational Companies
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Sample Questions
Q1) Proscriptive 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
Q2) 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.
Q3) Ethical decision making of multinational managers preferably should
A)Be based solely on home country ethical principles.
B)Go beyond legal constraints and respect the local cultural norms.
C)Be primarily profitable for the multinational.
D)None of the above
Q4) Discuss some of the issues that make international business ethics more complex than domestic business ethics.
Page 6
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Chapter 5: Strategic Management in the Multinational
Company: Content and Formulation
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Sample Questions
Q1) Key success factors are
A)Examples of defensive strategies.
B)Important characteristics of a company or its product that lead to success in an industry.
C)Similar to generic strategies.
D)The economic characteristics of countries that lead to success.
Q2) A strength is
A)A favorable condition in a company's environment.
B)Distinctive capability, resource, skill, or other advantage that a company has vis-à-vis its competitors.
C)Represented by changes in the economic conditions in an industry.
D)None of the above
Q3) Generic strategies
A)Occur when a company can outmatch its rivals in attracting and maintaining its customers.
B)Represent basic ways that domestic and multinational companies keep and achieve competitive advantage.
C)Are all based on finding ways to provide superior value to the customer.
D)None of the above
Q4) 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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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 are globalization drivers?
Q3) Global companies usually seek to
A)Provide unique products for all countries of the world.
B)Take advantage of different factor costs among countries.
C)Manufacture their products in every country.
D)Focus only on downstream activities in the value chain.
Q4) Foreign direct investment
A)Exists when two or more firms have an ownership position in a separate company.
B)Requires at least three separate companies to combine resources.
C)Exists when two or more companies agree to cooperate in any value-chain activity.
D)The above statements are all true for equity international joint ventures.
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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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) Consider three of the suggested strategic moves for copycat businesses.Which of these strategies might be most successful when expanding into the international market as opposed to the domestic market?
Q3) An entry wedge is
A)A strategic competitive advantage for breaking into the established pattern of commercial activity.
B)A competitive opening in an industry.
C)A strategy used by only new companies.
D)None of the above
Q4) Why are small businesses important for most economies?
Q5) Imagine a small business manager asks you,a recent business college graduate,to help her decide whether she should enter the export market.What questions would you ask her and why?
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Chapter 8: Organizational Design for Multinational Companies
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Q1) The functional structure is considered most efficient when
A)An organization gets too large.
B)When customers need special functions.
C)When the organization is in the mature phase of the life cycle.
D)When organizations have few products.
Q2) Organizations that are designed with mixtures of structures that are the best to implement their strategies are
A)Product structures.
B)Geographic structures.
C)Hybrid structures.
D)Functional structures.
Q3) What are some advantages of a worldwide product structure over a worldwide geographic structure? What type of company would most likely choose each type?
Q4) 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.
Q5) Compare and contrast bureaucratic control with output control.
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Chapter 9: International Strategic Alliances: Management and Design
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Q1) __________ means that companies rely on each other to contribute to the relationship.
A)Shared management
B)Balanced management
C)The norm of reciprocity
D)Mutual dependency
Q2) An agreement not legally binding between companies to cooperate on any value-chain activity is a (an)
A)Formal international cooperative alliance.
B)International joint venture.
C)Informal international joint venture.
D)International cooperative alliance.
Q3) In the split control management structure
A)Companies share all decision making.
B)Managers of the strategic alliance split from and act independently from their parent companies.
C)Partners divide decision making control by functional areas.
D)Each company takes a turn providing the operational managers.
Q4) 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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Q1) According to the text,which of the following is NOT one of the factors to take in consideration when picking a country to start an e-business?
A)Internet population of at least 5%
B)Countries with market inefficiencies, such as formerly state-controlled markets
C)Countries that participates in at least one free trade agreement
D)Countries that have remarkable education systems
Q2) Which of the following is NOT one of the necessary steps to ensure a successful E-Commerce strategy?
A)Building on current business models and experimenting with new e-commerce models
B)Allocating resources to the e-commerce business
C)Making sure that the entire firm is prepared to embrace the e-commerce model
D)Training all upper level management in computer programming
Q3) Discuss some of the basic steps to building a successful e-commerce strategy.
Q4) Discuss some of the technical capabilities that are needed for multinational e-commerce.
Q5) Discuss some of the major problems companies face when they try to globalize their Web sites.What can companies do to face these challenges?
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Chapter 11: International Human Resource Management
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Q1) International Human Resource Management
A)Is no different from domestic HRM.
B)Is the application of HRM to international settings.
C)Is the orientation to hiring international employees.
D)Is the selection and compensation of expatriates.
Q2) Difficulties that managers face in coming back to their home countries and reconnecting with their home organizations is known as the
A)Repatriation problem.
B)Reverse culture shock.
C)Low home re-adaptation index.
D)Expatriation problem.
Q3) Inpatriates are
A)Employees who come from a different country where he/she is working.
B)Expatriate workers who come from neither the host nor the home country.
C)Local workers who come from the host country where the unit is located.
D)Employees from foreign country who work in the country where the parent company is located.
Q4) Discuss any three of the key expatriate success factors and their implications for selection.
Q5) 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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Q1) 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?
Q2) Major components of the legal requirements for a US performance appraisal system include
A)Evaluations must relate clearly to the job.
B)Evaluations are not required when all workers are the same gender.
C)All testing must be quantitative.
D)Older workers need not have performance appraisals.
Q3) Which of the following is FALSE about recruitment and selection processes in collectivist cultures?
A)Companies prefer to hire directly out of school.
B)There is a preference for family and friends.
C)Personal information is considered important for selection.
D)Technical skills are considered crucial for selection.
Q4) In most collectivist cultures,performance appraisals
A)Follow similar patterns to the US legal requirements.
B)Are often communicated subtly, such as by a manager ignoring a worker.
C)Favor and open and honest dialogue regarding performance.
D)Are more formal than in individualistic cultures.
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Chapter 13: International Negotiation and Cross-Cultural Communication
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Q1) Touch
A)Is related to proxemics and is a basic form of human interaction.
B)Refers to communication through body movements.
C)Represents the degree of directness in communication.
D)Is similar to kinesics.
Q2) 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.
Q3) Which of the following regarding proxemics is FALSE?
A)Proxemics focuses on how people use space to communicate.
B)North Americans are more comfortable with a personal bubble of space of 20 inches.
C)Latin and Arab cultures prefer closer spacing than North Americans.
D)North Americans prefer closer spacing than the Latin and Arab cultures.
Q4) Identify and describe some common dirty tricks in international negotiation.What can be done to counteract these dirty tricks?
Q5) What is the Whorf hypothesis? Explain.
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Chapter 14: Motivation in Multinational Companies
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Sample Questions
Q1) 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.
Q2) Applying reinforcement at a cross-national level is challenging because
A)It is hard to identify the organizational rewards that can be used as reinforcers.
B)It is hard to understand how work values influence potential rewards.
C)It is hard to know which type of reinforcer is more applicable in different cultures.
D)All of the above
Q3) Describe Vroom's Expectancy Theory.What are some implications for multinational management?
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Chapter 15: Leadership and Management Behavior in Multinational Companies
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Q1) The idea that leaders are born with unique characteristics that make them different form ordinary people is the
A)Task centered leadership theory.
B)A contingency theory of leadership.
C)The great-person theory.
D)The leadership behaviors theory.
Q2) Key leadership suggestions based on path-goal theory include all of the following EXCEPT
A)When subordinates have high achievement needs, successful leaders adopt the achievement-oriented style.
B)When subordinates with have high social needs, they respond best to the supportive leadership style.
C)When the subordinate's job is unstructured, the theory suggests using a supportive style.
D)When the subordinate's job is highly structured, the theory suggests using instrumentality.
Q3) Define leadership.How might people from different national cultures define leadership? What are the implications of these definitions for multinational leaders working in these countries?
Page 17
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