Chapter 1 Quiz


Question 1

1 / 1 pts

Recently, the level of ________ in Europe, for example, was a great concern around the world, in particular regarding concerns in the eurozone brought about by debt problems in Greece.

cultural risk events



economic risk events


legal risk events


political risk events



Question 2

1 / 1 pts

Which of the following is a form of protectionist policies?





foreign direct investment






Question 3

1 / 1 pts

Zagreb Inc., a transnational energy company, negotiates a multimillion-dollar contract with the government to provide electricity to Pilladia. The government is voted out of power shortly after. The new government cancels all contracts it has with all oil companies but not contracts with firms in other industries. This is an example of ________.



barriers to repatriation



micropolitical risk





Question 4

1 / 1 pts

Emerson is a global manufacturing company headquartered in St. Louis, Missouri. The company employs almost 130,000 workers at its 250 manufacturing facilities located on five different continents. Emerson manufactures a wide range of products including air-conditioning compressors, garbage disposers, and automotive parts. Emerson’s Asian operations employ over 50,000 people at manufacturing facilities in Asia. Emerson needs to build a new manufacturing facility to produce automotive parts for cars manufactured in Detroit. Emerson executives are considering whether to build a new facility in China or in the United States. Which of the following questions is LEAST relevant to Emerson’s decision regarding where to build a new facility?

What is the likelihood of expropriation occurring to Emerson if it builds in China?


How will e-commerce affect Emerson’s ability to export products from China?

How will China’s underdeveloped infrastructure affect Emerson’s ability to manufacture and ship products?

How is China’s political and economic agenda likely to affect Emerson’s investment?


Question 5

1 / 1 pts

________ is based on a comprehensive set of laws organized into a code.

Common law



Civil law


Theocratic law


Contract law


Chapter 2 Quiz


Question 1

1 / 1 pts

Tokens of appreciation and grease money are considered ________.


questionable payments


cultural reward systems


sales commissions


business expenses



Question 2

1 / 1 pts

The Foreign Corrupt Practices Act of 1977 was primarily established to ________.


distinguish between harmless customs and actual bribery


combat corruption initiated by electronics firms and their subsidiaries


provide managers with anonymous methods for reporting bribery


prosecute international extortionists under the U.S. legal system



Question 3

1 / 1 pts

Which of the following best defines the concept of managing interdependence?

the effective management of a long-term, MNC subsidiary—host-country relationship through cooperation and consideration for host concerns

the process by which international managers accept and enact their role in the preservation of ecological balance on the earth

the process by which a firm grants the rights to a firm in the host country to produce or sell a product

the effective development of strategies that involve designing and operating systems, and working with people around the world to ensure sustained competitive advantage


Question 4

1 / 1 pts

In recent years, which of the following has lessened the criticisms of MNCs?

greater emphasis on social responsibility by MNCs


increasing economic differences among countries


limited emphasis on social responsibility and ethical behavior


dissolution of MNCs in developing countries



Question 5

1 / 1 pts

Which of the following prohibits U.S. companies from making illegal payments or other gifts

or political contributions to foreign government officials for the purposes of influencing them in

business transactions?

Foreign Corrupt Practices Act


Sherman Antitrust Act


Robinson-Patman Act


Wagner Corruption Act


Chapter 3 Quiz


Question 1

0.5 / 0.5 pts

Which dimension on Hofstede’s Dimensions does the United States score highest on?





Power Distance


Uncertainty Avoidance



Question 2

0.5 / 0.5 pts

Stereotyping should most likely be avoided by international managers because ________.

national culture is nonexistent


current variables of culture are grossly inaccurate


many cultures have diverse subcultures


many countries outlaw the practice



Question 3

0.5 / 0.5 pts

________ comprises the shared values, understandings, assumptions, and goals that over time

are passed on and imposed by members of a group or society.










Question 4

0.5 / 0.5 pts

Which of the following is an advantage of organizational culture?

tendency to adopt changes quickly




excessive domestic focus


long-term commitment



Question 5

0.5 / 0.5 pts

According to contingency management, international managers need to ________.

transfer home-country business practices to the local environment


determine the extent to which locals will accept unequal power


adapt their management styles to the local setting and people


provide training to locals before transferring new technology



Question 6

0.5 / 0.5 pts

Med-Tex, a large pharmaceutical firm based in Texas, wants to establish its presence by

expanding overseas. The company’s executives evaluate locations across the world for the most

suitable place to build the latest Med-Tex manufacturing facility. Which of the following, if true,

best supports the argument that Med-Tex should build its new facility in Ireland?

Collectivist societies like Ireland encourage the individual achievement necessary for scientific advancements in pharmaceuticals.

Med-Tex’s main competitor received government incentives for building a new manufacturing facility in the United Kingdom.

Particularistic cultures apply rules and systems objectively, which is important within the Med-Tex organizational culture.

Expanding into a similar culture reduces risks associated with different attitudes, values, and communication styles.


Question 7

0.5 / 0.5 pts

Which of the following is a primary reason for failed expatriate assignments?

economic barriers


moral universalism


cross-cultural differences


creeping incrementalism



Question 8

0.5 / 0.5 pts

An international manager can best develop an understanding of a particular culture by


assuming that his or her own cultural styles and practices can be successfully followed in the host country

hiring locals rather than expatriates for management positions in overseas subsidiaries

creating a cultural profile for that country or region in which the firm does business

using stereotypes to develop cross-cultural understanding in a business setting


Question 9

0.5 / 0.5 pts

Which of the following is NOT true about cultural diversity?

Companies may gain competitive advantages by bringing together people of diverse backgrounds.

The process of bringing people of different national cultures together is often difficult.

Cultural diversity may help a company gain deeper knowledge about products and services.

Cultural diversity is most successful when domestic and foreign firms establish joint ventures.


Question 10

0.5 / 0.5 pts

Which of the following is a drawback of organizational culture?

reduced cooperation


resistance to change


lack of commitment


dishonesty toward organization


Quiz Chapter 4


Question 1

1 / 1 pts

Brenda is the head of a sports firm in Sweden. In order to communicate effectively with her

workers, Brenda should ________.


build friendly relationships and encourage two-way dialogues

communicate information in a direct and explicit way

communicate information with facts and figures

exchange gifts with her employees frequently

Question 2

1 / 1 pts

Which of the following tips is most likely to lead to effective intercultural communication?


Messages need to be encoded carefully.

Avoid being culturally sensitive over the Internet, as it might result in discrimination.

It is always better to use long and descriptive sentences.

Communication processes should be made quicker by removing feedback systems.

Question 3

1 / 1 pts

Tom manages a U.S. pharmaceutical subsidiary located in Ireland. In order to communicate

effectively with Irish employees and improve their productivity, Tom should ________.



provide positive support to employees

emphasize achieving objective end results

challenge the employees to perform better

address conflicts during group meetings

Question 4

1 / 1 pts

Which of the following is most likely a characteristic of communication channels in low-

context cultures?


controlled flow of information

rapid spread of information

upward flow of information

informal flow of information

Question 5

1 / 1 pts

Which of the following is the most accurate statement concerning the role of context in

cross-cultural communication?


In high-context cultures, the message is implicit; in low-context cultures, the message is explicit.

In high-context cultures, there is a low sensory involvement; in low-context cultures, there is a high sensory involvement.

In high-context cultures, many tasks are handled simultaneously; in low-context cultures, only one task is handled at a time.

In high-context cultures, work time is flexible; in low-context cultures, work time is not flexible.


Quiz:Chapter 5

Question 1

0.5 / 0.5 pts

When preparing for cross-cultural negotiations, managers should first evaluate their own

negotiation styles in order to ________.

  analyze the various stages of the negotiation process

understand the reasons for failing or succeeding in domestic negotiations

  determine how they differ from the norm in other countries

assess all social and cognitive influences


Question 2

0.5 / 0.5 pts

Which of the following is most likely to be a reason for ineffective international business


  highly restrictive government legislations

ifferences in cultural values and problem-solving techniques

lack of nonverbal communication

lack of socializing with the opposite party


Question 3

0.5 / 0.5 pts

Which aspect of the negotiation process will most likely occur on a continuous basis?

concessions and agreement



relationship building


Question 4

0.5 / 0.5 pts

Which of the following is most likely a subtle and complex behavior that makes cross-

cultural negotiations difficult?

nonverbal communication

exchanging objective information

employing information technology

developing goals of negotiation


Question 5

0.5 / 0.5 pts

Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want

to enter the global market, and they are considering the idea of a joint venture with a beverage

company located overseas. After conducting research on different beverage firms, Fizzy

executives selected a large beverage manufacturer located in China. Kevin Burns and three other

top-level executives at Fizzy have been assigned to the negotiating team. The team recently

arrived in China to negotiate the details of the joint venture. Which of the following, if true,

strengthens the argument that Kevin should make token concessions to the Chinese throughout

the negotiation process?


Fizzy executives are not certain as to who has decision-making authority at the Chinese firm.

Fizzy executives hope to have other business deals with the Chinese firm in the future.

Fizzy executives want to ensure compliance with the ringi system at the Chinese firm.

Fizzy executives want to demonstrate their aggressiveness and present factual appeals.


Question 6

0.5 / 0.5 pts

Which of the following statements is true regarding a negotiation process?

  The stages of the negotiation process are distinctly separate.

The cultural norms of the place determine the order of the negotiation process stages.

The negotiation process consists of six different stages.

The concession and agreement stage typically occurs before the preparation stage.


Question 7

0.5 / 0.5 pts

Which of the following variables is LEAST relevant to the profile of an opposing party in a

cross-cultural negotiation?

  value and uses of time

location of the negotiation

bases of trust

risk-taking propensity


Question 8

0.5 / 0.5 pts

Which of the following is a similarity between the negotiation styles of both North

Americans and Latin Americans?

They tend to be argumentative when they think they are right

They display strong commitment to their employers.

They highly value emotional sensitivity.

They give great importance to documentation.


Question 9

0.5 / 0.5 pts

One of the primary purposes of relationship building during the negotiation process is to


  build mutual trust

exchange task-related information

create formal contracts

avoid direct confrontations


Question 10

0.5 / 0.5 pts

For long-term positive relations, the goal of negotiation should most likely be to ________.

  establish a clear line of communication

establish clear objectives of the parties involved

reach a settlement that benefits all parties

avoid nonverbal communication