1.Which of the following is an inappropriate link between global mindsets and personal  characteristics of management?  

            a. Value diversity-Open

            b. Balance for contradictions-Strategic

            c. Drive for broader picture-Knowledgeable

            d. a and b

e. All of the above are inappropriate links.  

2.Which of the following describes managing competitiveness?  

            a. It involves gathering information on a global basis and the ability to utilize the

            information to increase competitive advantage and profitability as well.

            b. It ensures that a company will respond to environmental changes in a timely

            fashion.

            c. When managing competitiveness, managers must possess cultural sensitivity and self-awareness.

            d. Managers must make a life commitment to learning to effectively manage

            competitiveness.  

3.Which of the following is an appropriate link between traditional mindsets and global mindsets?  

      a. Specialization-Engage in processes

      b. Manage job-Balance of contradictions

      c. Control results-Value diversity

      d. Learn domestically-Learn globally

      e. All of the above are appropriate links.  

4. Choose the answer that does not describe the power paradox.  

            a. Team members agree on how power and authority should be allocated.

            b. Cultural dimensions are central to team members’ cultures.

            c. Issues of relationships among people are related to the task.

            d. All of the above.

            e. None of the above.  

5.Which of the following is not a tactic used by management to resolve the power paradox?  

            a. Decrease the importance of different beliefs.

            b. Identify demographic and cultural characteristics of individual team members to
understand potential faultlines and areas of similarity and difference.

c. Learn which cultural dimensions are most likely to be responsive to change.

d. All of the above tactics are used by management to resolve the power paradox.  

      6.Which entry mode has the greatest potential for conflict with respect to control?  

                  a. Exporting

                  b. Licensing

                  c. Joint ventures

                  d. Franchising

e. All of the above have the potential to involve approximately the same amount of conflict.  

      7.What is the major disadvantage of a wholly owned subsidiary?  

a. A firm’s core competences or technological knowledge may be exhausted on the new wholly owned subsidiary.

                  b. It is the most costly and riskiest form of foreign market entry.

                  c. This mode of entry does not provide effective control and coordination.

d. This mode of entry does not open up the opportunity to capitalize on the experience curve and location economies.  

            8.The three different ways that managers handle cultural differences are polycentrism,

            ethnocentrism, and geocentrism.  Which one of them is the belief that one’s own group

            is superior to others?  

                        a. Ethnocentrism

                        b. Polycentrism

                        c. Geocentrism

                        d. None of the above.  

            9.Which of the following is not one of the six key factors that have a direct affect on a

            company’s understanding of the international business environment?  

                        a. Creating a system to search for international business opportunities.

                        b. New technology in the international business environment.

                        c. Success and failure in understanding the business environment.

                        d. Competitive factors that influence the business environment.

                        e. All of the above are included in the six key factors.  

            10.Which is not true about cross-cultural leadership?                       

            a. A culture is particular to one group.

            b. Group members are influenced by culture in predictable and consistent ways.

            c. Values originate in one’s culture.

d. Different social groups have different cultures, so they will always have different responses to the same situations.

e. All of the above are true.  

Answer Key  

1.      C

2.      A

3.      D

4.      A

5.      D

6.      C

7.      B

8.      A

9.      B

10.  D