Managing Multinational Corporations
Exam Materials
Course Introduction
This course explores the strategic, organizational, and operational challenges faced by multinational corporations (MNCs) operating in an increasingly globalized business environment. Students examine key topics such as international market entry, cross-border mergers and acquisitions, global supply chain management, and the impact of cultural, political, and legal differences on business decision-making. Through case studies and real-world examples, the course emphasizes the development of managerial skills necessary to navigate complex international contexts, manage diverse teams, and create competitive advantages in foreign markets.
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) . A global product or service is
A)Adapted for each country's unique needs.
B)A similar product or service for all customers throughout the world.
C)A product or service that requires bilingual customers.
D)Products developed for use outside the country.
Answer: B
Q2) Which of the following statements about globalization is false?
A)Globalization is a simple evolutionary process.
B)Not all economies of the world are benefiting equally from globalization.
C)Terrorism, wars and SARS has limited and even reversed the effects of globalization.
D)All of the above statements are false.
Answer: A
Q3) Examples of developed economies would include:
A)The U.S.and Japan.
B)Hungary and Poland.
C)Argentina and Brazil.
D)Hong Kong and Singapore.
Answer: A
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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) Some people believe that the norms,values,and beliefs of their own culture represent the only correct ways of dealing with the world.This is called A)High power distance.
B)Stereotyping.
C)Androgyny.
D)Ethnocentrism.
Answer: D
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4
Chapter 3: The Institutional Context of Multinational Management
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Sample Questions
Q1) How does the educational system influence the business environment in any country?
Answer: Answers will vary.Students' answers should mention that most countries want to achieve universal educational enrollment because education enables society to instill the skills,attitudes,behaviors,and knowledge that allow people to demand more and give more to society.
Q2) One important issue relevant to multinationals, is the extent to which educational systems encourage students to
A)Be innovative and creative.
B)To expect a more ethical atmosphere.
C)Passively accept what is taught.
D)None of the above
Answer: C
Q3) 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
Page 5
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Chapter 4: Managing Ethical and Social Responsibility
Challenges in Multinational Companies
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Sample Questions
Q1) International business ethics
A)Present problems similar to domestic business ethics.
B)Pertain to the rules and values that determine actions that companies should follow when dealing with other companies.
C)Pertain to those unique ethical problems faced by managers conducting business across countries.
D)None of the above
Q2) Which act was proposed by the Securities Exchange Commission in reaction to the accounting scandals at companies like Enron and Worldcom?
A)Sarbanes-Oxley
B)WTO
C)Corruption Perception Index
D)The Ethisphere Institute
Q3) Written ethical codes may include which of the following?
A)Contracts
B)International laws
C)Laws of a country
D)All of the above
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) What is related diversification? When would you expect related diversification to be more profitable than unrelated diversification?
Q2) Differentiation leads to higher profits by
A)Charging a higher price than competitors.
B)Offering the customer better value.
C)Offering a product with more features and quality.
D)All of the above
Q3) Upstream activities in the value chain are concerned,in part,with
A)The primary activities.
B)The support activities.
C)Input logistics.
D)After market service.
Q4) Corporate level strategies
A)Are similar to the generic strategies.
B)Pertain to the operation of corporate divisions.
C)Are concerned with how single business companies choose strategies.
D)Are concerned with how companies choose their mixtures of different businesses.
Q5) Regarding low cost and differentiation strategies,when is each strategy appropriate?
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Chapter 6: Multinational and Entry-Mode Strategies:
Content and Formulation
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Sample Questions
Q1) Contrast the transnational and international strategies in their approach to location advantages.
Q2) Asking diagnostic questions such as are there economies of scale,are there cheaper sources of raw materials,are there global sources of low-cost raw materials provide information regarding which globalization driver?
A)Global markets
B)Costs
C)Competition
D)Governments
Q3) Advantages of foreign direct investment include
A)Increased capital investment.
B)Greater control of product and marketing strategy.
C)Greater exposure to financial risks.
D)The lower costs of using expatriates managers.
Q4) You work for a small company that has an innovative low-cost production method for laser disks that allow it to produce at very low cost.A Belgian firm approaches your CEO and offers to export your disks to Belgium for a commission.The CEO asks you to write a report detailing the risks and potential benefits of this deal.What will you include in your report and why
Page 8
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Chapter 7: Small Businesses and International Entrepreneurship
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Sample Questions
Q1) Definitions of small businesses discussed in the text include the following EXCEPT
A)Number of employees.
B)Sales revenue.
C)Industry.
D)Type of product or service.
Q2) When demand for a small business is so high in a foreign country that it justifies setting up a local branch,which of the following stages of internationalization is the small business at?
A)Export management
B)Passive exporting
C)Production abroad
D)None of the above
Q3) Discuss some of the advantages that the Internet can offer small businesses when going international.
Q4) Global start-ups occur when
A)Companies have consistent licensing agreements.
B)Companies start exporting as soon as they receive their first order.
C)Companies begin as multinationals.
D)Companies move rapidly through the stages of internationalization.
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Chapter 8: Organizational Design for Multinational Companies
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Sample Questions
Q1) A permanent unit of the organization designed to focus the efforts of different subunits on particular problems is a
A)Task force.
B)Full-time integrator.
C)Liaison.
D)Team.
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) 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.
Q4) Discuss some of the advantages of a functional structure over the product or geographic structure.When is it necessary to adopt a geographic or product structure?
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Chapter 9: International Strategic Alliances: Management and Design
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Q1) Contracts for strategic alliances may include _____________ if the relationship dissolves before the negotiated time.
A)Penalties for early termination of the contract by each side
B)Restrictions on future business growth
C)A promise to try future joint ventures
D)All of the above
Q2) Trust in strategic alliance relationships
A)Usually builds in cycles.
B)Either exists at the beginning of the relationship or will never be there.
C)Can really only evolve with partners from similar cultures.
D)Can never exist in high technology relationships since the risk of losing the technology is too great.
Q3) The best level of dependency recommended for a strategic alliance is A)Balanced.
B)Home country dominated.
C)Host country dominated.
D)It does not matter if there are more than two companies.
Q4) What are some of the difficulties of assessing IJV or ICA performance? How do these differ for companies with different strategic goals?
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Chapter 10: Multinational E-Commerce: Strategies and Structures
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Sample Questions
Q1) Southeast Asian countries represent opportunities for e-commerce growth due to
A)Spanish language websites.
B)Membership in ASEAN.
C)Global demand.
D)Internet economy.
Q2) Ebay is a prime example of which form of e-commerce?
A)Business to business transactions (B2B)
B)Business to consumer transactions (B2C)
C)Consumer to business transactions (C2B)
D)Consumer to consumer transactions (C2C)
Q3) According to the text,which of the following areas is not one of the areas that e-commerce companies work in?
A)Moving bits or computerized information
B)Moving money in payment flows
C)Providing Internet services
D)Moving physical products
Q4) What is e-commerce? What are the main types of e-commerce transactions?
Discuss some of the reasons why B2B transactions make up a significant percentage of current e-commerce business?
Page 12
Q5) 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) International cadre are
A)A group of managers who specialize in international careers.
B)Managers who are hired on a temporary basis to solve international problems.
C)Experts on international operations who work as part of the headquarters staff.
D)A group in charge of training managers for expatriate assignments.
Q2) 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
Q3) Using more local managers to reduce the costs of training expatriate managers is a benefit usually associated with
A)A global HRM orientation.
B)A polycentric or regiocentric HRM orientation.
C)An ethnocentric HRM orientation.
D)A geocentric orientation.
Q4) Identify the components of HRM and describe how they differ for IHRM.
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Page 13
Chapter 12: Hrm in the Local Context: Knowing When and How to Adapt
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Sample Questions
Q1) The group of employees,found in Germany,that shares plant-level responsibility with managers over issues such as working conditions is
A)An enterprise union.
B)A craft union.
C)A works council.
D)An ideological union.
Q2) Differences in HRM policies and practices among countries stem from
A)Education and training of the labor force.
B)Laws and cultural expectations for selection practices.
C)Laws and traditions regarding labor practices.
D)All of the above
Q3) According to a study of ten countries on nine compensation practices
A)There was universal consensus on all nine as being necessary.
B)There was universal consensus on eight as being necessary.
C)There was universal consensus that seniority considerations are necessary.
D)None of the above are true
Q4) Contrast the different types of unions and discuss the challenges each type may pose to a multinational manager.
Page 14
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Chapter 13: International Negotiation and Cross-Cultural Communication
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Q1) Kinesics is
A)Communicating through body movements.
B)A form of verbal communication.
C)Focuses on how people use space to communicate.
D)The type of touching that is deemed appropriate in different cultures.
Q2) All of the following are true about the final agreement EXCEPT
A)The final agreement is the signed contract, agreeable to all sides.
B)Successful negotiations do not necessarily result in the final agreement.
C)The final agreement must be consistent with the chosen legal system or systems.
D)All of the above are true.
Q3) Olfactics
A)Is the use of smells as a means of nonverbal communication.
B)Refers to communication through eye contact or gazing.
C)Communication through the use of space.
D)Communication through body contact.
Q4) Identify some cultural differences in body movements (kinesics).How might these influence a negotiation session?
Q5) Identify and describe some common dirty tricks in international negotiation.What can be done to counteract these dirty tricks?
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Chapter 14: Motivation in Multinational Companies
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Q1) In individualistic cultures,performance drops off with the use of teamwork because A)Of social loafing.
B)Workers believe that the group will make up any slack in their personal efforts.
C)Workers do not feel responsible for group outcomes.
D)All of the above
Q2) Which of the following is NOT one of the reasons discussed to explain why people engage in social loafing in individualistic cultures?
A)When working in groups, people in individualistic cultures often feel less pressure to work and less responsible for work outcomes.
B)Workers in groups in individualistic cultures often believe that the group will make up any slack in their personal efforts.
C)People in individualistic cultures often give priority to their own work over the group.
D)All of the above are reasons to explain social loafing in individualistic cultures.
Q3) Discuss equity theory.What are the implications for multinationals?
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16
Chapter 15: Leadership and Management Behavior in Multinational Companies
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Sample Questions
Q1) The type of leadership that includes behaviors that focus on completing tasks by initiating structure is known as
A)Task-centered leadership.
B)Person-centered leadership.
C)Autocratic leadership.
D)Democratic leadership.
Q2) Consulting with subordinates,asking for suggestions,encouraging participation in decision making,represent which leadership style in path-goal theory?
A)Directive style
B)Supportive style
C)Participative style
D)Achievement-oriented style
Q3) The recommended leadership style for a country high on power distance and low on uncertainty avoidance is
A)The boss - directive.
B)The professional - directive, supportive and participative.
C)The master - directive and supportive.
D)The democrat - supportive and participative.
Q4) Compare and contrast U.S.and Japanese perspectives on leadership behavior.
Page 17
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