Strategic Management in International Context
Question Bank
Course Introduction
This course explores the formulation and implementation of business strategies in an international context, focusing on how organizations compete and operate across borders. Students will examine key concepts such as global competitive advantage, cross-cultural management, international market entry strategies, and the impact of political, economic, and cultural environments on strategic decision-making. Through case studies and practical analysis, the course emphasizes the challenges and opportunities of managing multinational enterprises in an increasingly connected and dynamic global economy.
Recommended Textbook
International Management Culture Strategy and Behavior 10th Edition by Fred Luthans
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14 Chapters
1051 Verified Questions
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Chapter 1: Globalization and International Linkages
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Sample Questions
Q1) In the context of established economies,the United States has considerable foreign direct investment in _____.
A) the Netherlands
B) Mexico
C) the United Kingdom
D) Canada
Answer: D
Q2) Unlike a market economy,a command economy is characterized by:
A) private ownership of businesses.
B) an appropriate response to consumers' stated needs and desires.
C) insufficient security provided by government subsidies.
D) an ignorance of demographic information by management.
Answer: D
Q3) To qualify as a multinational corporation (MNC),a firm must meet all of the following criteria except:
A) operations in more than one country.
B) international sales.
C) a mix of nationalities among managers and owners.
D) sales of at least one million dollars per year.
Answer: D
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Chapter 2: The Political, Legal, and Technological Environment
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Sample Questions
Q1) The nationality principle is a jurisdictional principle of international law that holds that every country has jurisdiction over its citizens no matter where they are located.
A)True
B)False
Answer: True
Q2) An act that makes it illegal to influence foreign officials through personal payment or political contributions is referred to as the _____.
A) Fairness in International Affairs Act
B) Foreign Corrupt Practices Act
C) Global Ethics Act
D) Fair Treatment of Foreign Citizens Act
Answer: B
Q3) Fascism is an extreme form of socialism that was realized through violent revolution and was committed to the idea of a worldwide communist state.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Ethics, Social Responsibility, and Sustainability
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Sample Questions
Q1) Which of the following statements is true about the adage "When in Rome,do as the Romans do"?
A) The adage is derived from the idea of cultural relativism.
B) Its logic is similar to an economic calculation of utility or cost-benefit.
C) The adage assumes that an individual is distinct from the entire universe.
D) It is derived from the idea that a virtuous individual derives utmost satisfaction from his or her good actions.
Answer: A
Q2) Many NGOs recognize that MNCs fail to adhere to high standards of social and environmental responsibility in host countries' markets.
A)True
B)False
Answer: False
Q3) The existence of equal opportunity in French and German law guarantees that equal opportunity initiatives will be implemented.
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) According to Dutch researcher Geert Hofstede,there are four original dimensions of culture.These are:
A) power distance, uncertainty avoidance, individualism, and masculinity.
B) tolerance, group orientation, aggressiveness, and forwardness.
C) group orientation, uncertainty avoidance, aggressiveness, and masculinity.
D) tolerance, power distance, individualism, and aggressiveness.
Q2) In the context of the characteristics of culture,transgenerational means that culture has structure and is integrated; a change in one part will bring changes in another.
A)True
B)False
Q3) A(n)_____ culture accords status based on age,gender,or social connections.
A) diffuse
B) ascription
C) specific
D) achievement
Q4) Discuss the cultural dimensions as identified during phase one of the GLOBE project.
Q5) Define culture and list its characteristics as agreed by most scholars.
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Chapter 5: Managing Across Cultures
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Sample Questions
Q1) A company with a(n)_____ predisposition allows the values and interests of the parent company to guide strategic decisions.
A) polycentric
B) geocentric
C) ethnocentric
D) regiocentric
Q2) A company with a(n)_____ predisposition tries to integrate a global systems approach to decision making.
A) ethnocentric
B) polycentric
C) geocentric
D) regiocentric
Q3) Which of the following is already being used by the Japanese and is currently being employed by the Americans?
A) Manager-subordinate performance appraisal
B) Cross-training and formal authority
C) Hiring process designed to help identify individuals who will do the best job over the long run
D) Participative management and autonomous work teams
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Chapter 6: Organizational Cultures and Diversity
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Sample Questions
Q1) When _____ occurs,group participants believe that their ideas and actions are correct and that those who disagree with them are either uninformed or deliberately trying to sabotage their efforts.
A) group cognitive inertia
B) group reverse vigilance
C) groupthink
D) static decision making
Q2) Multicultural teams are most effective when they are assigned to routine tasks.
A)True
B)False
Q3) Briefly discuss the guidelines to be followed by managers when setting out to manage a culturally diverse team.
Q4) To unite a diverse set of employees in a pharmaceutical company under a common corporate culture,AstraZeneca's Global Steering Group has focused on three universal cultural pillars.Which of the following is not one of those pillars?
A) Leadership and Management Capability
B) Transparency in Talent Management and Career Progression
C) Work/Life Challenges
D) Insight Exchange
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Chapter 7: Cross-Cultural Communication and Negotiation
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Sample Questions
Q1) Define negotiation and explain the basic steps in the negotiation process.
Q2) Which of the following tends to reduce understanding in cross-cultural negotiations?
A) Not identifying a counterpart's home culture too quickly
B) Accepting the tendency to formulate simple, consistent, stable images
C) Being aware of the Western bias toward "doing"
D) Not overestimating one's familiarity with his or her counterpart's culture
Q3) It is very difficult to communicate effectively with someone from another culture unless at least one party has some understanding of the other's culture.
A)True
B)False
Q4) Which of the following places would be the best neutral site for a Brazilian firm carrying on negotiations with an Italian firm?
A) Milan
B) Sardinia
C) Florence
D) New York City
Q5) How does culture impact communication?
Q6) Explain the wide variety of tactics used in international negotiation.
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Chapter 8: Strategy Formulation and Implementation
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Sample Questions
Q1) For products like computers,Japanese firms:
A) move from their home market directly into fully developed countries and then on to newly developing nations.
B) move from their home market directly into developing nations and then on to developed countries.
C) go only to developed countries to market products.
D) go only to developing countries to market products.
Q2) _____ is the strategic planning process that helps a firm evaluate its current managerial,technical,material and financial strengths and weaknesses.
A) Environmental scanning
B) Administrative coordination
C) Internal resource analysis
D) Corporate governance
Q3) When market liberalization is delayed,_____.
A) first movers possess a significant advantage over later entrants.
B) first movers possess clear, significant advantages in transitional markets.
C) later entrants possess a significant advantage over first movers.
D) substantial risks to premature entry are removed.
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10
Chapter 9: Entry Strategies and Organizational Structures
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Sample Questions
Q1) The global structural arrangement differs from the international division structure because,while both have an international scope,the former focuses on greater expansion and integration among international operations.
A)True
B)False
Q2) In a company that has a narrow product line,the export manager usually reports directly to the head of _____.
A) purchasing
B) personnel
C) production
D) marketing
Q3) In which of the following multinational company (MNC)structures is tight process bureaucratic control used to maintain product quality and consistency?
A) Transnational network structure
B) Global area division
C) Matrix structure
D) Global product division
Q4) Explain alliances and joint ventures.
Q5) Describe the common conditions under which licensing is used.
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Chapter 10: Managing Political Risk, Government Relations, and Alliances
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Sample Questions
Q1) Benefits of proactive political strategies include all of the following except _____.
A) enhancing government relations in unstable and transitional policy environments
B) mitigating risk before it becomes unmanageable
C) providing support for national and sub-central governments in transitional economies
D) counteracting competitors' efforts to influence government policy
Q2) 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
Q3) Micro political risk analysis is directed toward government policies and actions that influence selected sectors of the economy or specific foreign businesses.
A)True
B)False
Q4) Explain the special nature of foreign direct investment (FDI).
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Chapter 11: Management Decision and Control
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Sample Questions
Q1) Which of the following strategies is most likely to benefit when doing business with managers who use an internal control approach?
A) Remembering that it is of most importance to win one's objective
B) Employing a dominating attitude bordering on aggressiveness toward environment
C) Understanding that conflict and resistance means that person has convictions
D) Focusing on self, function, one's own group, and one's own organization
Q2) A typical assessment center would involve simulation exercises that would include the following except _____.
A) in-basket exercises
B) oral communications of a business plan
C) business decision exercises
D) preparation of a business plan
Q3) The use of monthly operating reports that are sent to the home office is a common example of _____.
A) direct control
B) indirect control
C) external control
D) cultural control
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13
Chapter 12: Motivation Across Cultures
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Sample Questions
Q1) A shortcoming of the equity theory is that it appears to be culture-bound.
A)True
B)False
Q2) Use of _____ to motivate employees is very common in countries with high individualism.
A) fringe benefits
B) job security
C) participative techniques
D) financial incentives
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) Process theories of work motivation explain how employee behavior is initiated,redirected,and halted.
A)True
B)False
Q5) What are the differences between job-context factors and job-content factors?
Page 14
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Chapter 13: Leadership Across Cultures
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Sample Questions
Q1) Identify the style of leadership that has been widely espoused in the United States,England,and other Anglo countries.
A) Paternalistic
B) Transformational
C) Transactional
D) Participative
Q2) A leader who monitors follower performance and takes corrective action when deviations from standards occur is referred to as a transactional leader.
A)True
B)False
Q3) In a survey conducted by Brodbeck and his associates,which of the following culture clusters produces leaders who rate performance orientation as the most important leadership attribute?
A) Germanic
B) Anglo
C) Latin
D) Nordic
Q4) Describe the difference between transformational leadership and transactional leadership.
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Chapter 14: Human Resource Selection and Development
Across Cultures
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Sample Questions
Q1) Research shows that small firms undertaking international business generally rely on
A) standard training programs
B) strategic alliances
C) trade zones
D) uniform commercial codes
Q2) Which of the following statements about third-country nationals (TCNs)is false?
A) Third-country nationals (TCNs) can often achieve corporate objectives more effectively than expatriates.
B) During periods of rapid expansion, third-country nationals (TCNs) can substitute for expatriates in well-established operations.
C) During rapid expansion, third-country nationals (TCNs) can offer different perspectives that can expand on the narrowly focused viewpoints of local nationals.
D) In joint ventures, third-country nationals (TCNs) can demonstrate a global image and bring unique cross-cultural skills to the relationship.
Q3) Identify the criteria that would influence a multinational corporation in the selection of an individual for an international assignment.
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