
- •International Management: Exam Questions
- •International management: an overview.
- •How would you define management?
- •What are the managerial functions?
- •What are the basic managerial jobs?
- •In what fundamental way are the basic goals of all managers at all levels and in all kinds of enterprises the same?
- •What is the nature of today’s global business environment? How does this environment facilitate international business activities? Provide examples.
- •How do the legal–political, economic, and cultural environmental differences within a country affect a firm’s international business transactions? Provide examples.
- •What is international business? How does the management of an international business differ from that of a domestic one? Provide examples with specific firms and countries in mind.
- •International transactions involve money converting into different currencies
- •Define globalization. What are the pros and cons of globalization? Provide examples.
- •What is the globalization of markets? Of production? Provide examples.
- •Why do we study international business? Why has studying it become more important today than ever before?
- •How would you define the nature and purpose of international management?
- •What advantages do multinational corporations have? What challenges must they meet? Give examples.
- •What are the major forms of internationalizing? How do firms choose the market entry modes?
- •Why is managing an international business different from managing purely domestic business?
- •International economic environment
- •What are the major objectives for the international economic environment scanning? Name the elements of international economic environment that require special attention of the firms. Why?
- •What are the stages of the country economic analysis? What are the major objectives of this analysis?
- •Compare and contrast the theories of absolute and comparative advantage. How do they stand today? Does one stand more than the other? Why or why not? Support your answer with examples.
- •What do the contemporary trade theories state? Provide examples.
- •Explain the difference between autonomous and offsetting (or accommodating) transactions.
- •Since the balance of payments must always balance, how do balance of payments deficits or surpluses emerge?
- •How will the dollar/euro exchange rate be affected if American consumers consider that it is fashionable to own a bmw car?
- •What are the causes of globalization?
- •What is the difference between a free-trade area and a customs union?
- •What are the costs and benefits of economic and monetary union?
- •International cultural environment
- •Define culture. Which definition in your opinion, is the most appropriate and why? Provide examples?
- •Which needs must be satisfied by culture? Briefly explain each and provide examples.
- •Present culture and its elements. Provide examples and relate them to international business.
- •What is the role of each major religion in conducting international business? What do Christianity, Islam, Hinduism, and Buddhism declare in terms of business?
- •Describe Trompenaar’s value dimensions and discuss their use in international business.
- •Compare and contrast the Kluckhohn–Strodtbeck and Hofstede frameworks and their application in understanding culture.
- •What is parochialism? Culture shock? Ethnocentrism? Provide examples.
- •What are the phases of the culture shock? Explain the methods of dealing with culture shock
- •What do we mean by cross-cultural management and training?
- •How employers can help bridge the cultural divide in the workplace?1
- •How would you train an international business manager?
- •Which practical tips would you provide as the most appropriate when it comes to international business, and why?
- •What is social capital? In your opinion, how cross-cultural management can benefit the business from the point of view of its intangible assets and the income statement?
- •International political and legal environment
- •Define and describe the international political environment. Name its key elements. How should the international managers deal with the foreign political environments?
- •What is political risk? What are the sources of political risk for international companies? How are they connected with the types of political risks?
- •Define the categories of international political risk. Provide examples.
- •What are the objectives of political risks analysis? Are they different from the objectives of international political environment analysis?
- •What are the elements of risks that should be formalized? Explain the methods of political risks analysis.
- •What are the factors and variables of political risks rating, modeling and forecasting suggested by the prs Group and The Economist Intelligence Unit, and beri?
- •What are the best information sources for the political risks analysis?
- •What are the basic strategies to manage political risk?
- •How should international managers minimize the political risk?
- •How does the political environment affect the economy?
- •How does the legal environment affect international business? How should the international managers address the various legal challenges in different countries?
- •What ways are there in resolving international disputes?
- •What are the differences between Common, Civil, and Theocratic Law? How do international managers deal with these different types of laws?
- •What is corruption and how does it affect international business?
- •What is bribery and how is it being addressed by international agencies?
- •Strategic planning in the multinational company.
- •Why strategic planning is important?
- •What are the limitations for strategic planning?
- •How to organize the strategic planning process?
- •Why strategic planning process might be different in different organizations? Provide examples.
- •What are the existing approaches and methods to strategic management?
- •Organizing in the multinational company.
- •What kinds of authority relationships exist in organizations?
- •How authority is dispersed throughout the organization structure, and what determines the extent of this dispersion?
- •What explains the differences in organizing practices between countries? How these differences might be managed?
- •Fundamentals of international hr management. Leadership and motivation in international context.
- •What are the different approaches to international staffing? Outline their main characteristics.
- •What are the functions of international assignments?
- •What are the reasons for using international assignments?
- •What are the positive and negative aspects of a Parent Country National?
- •What elements would you include in a repatriation program?
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Describe Trompenaar’s value dimensions and discuss their use in international business.
There are 4 value dimensions, which are carried out on 2 levels-personal and society.
In Trompenaar’s dimension of universalism versus particularize, the universalistic approach applies rules and systems objectively, without consideration for individual circumstances, whereas the particularistic approach, more common in Asia and in Spain for example, not only puts the obligation toward relationships .rst but is also more subjective. Trompenaar found that people in particularistic societies are more likely to pass on inside information to a friend than those in universalistic societies.
In the neutral versus affective dimension, the focus is on the emotional orientation of relationships. The Italians, Mexicans, and the Chinese, for example, would openly express emotions even in a business situation whereas the British and the Japanese would consider such displays unprofessional; in turn they would be regarded as hard to “read.”
As for involvement in relationships, people tend to be either septic or diffuse (or somewhere along that dimension). Managers in septic-oriented cultures—United States, United Kingdom, France—separate work from personal issues and relationships; they compartmentalize their work and private lives and are more open and direct. In diffuse-oriented cultures like Sweden and China, there is a spillover from work into the realm of personal relationships and vice versa.
The achievement versus ascription dimension examines the source of power and status in society. In an achievement society, the source of status and impudence is based on individual achievement—how well one performs the job and what level of education and experience one has to offer. Therefore, women, minorities, and young people usually have equal opportunity to attain positions based on their achievements. In an ascription-oriented society, people ascribe status on the basis of class, age, gender, and so on; one is more likely to be born into a position of impudence. Hiring in Indonesia, for example, is more likely to be based on who you are than hiring for a position in Germany or Australia. From all this it becomes clear that a lot of what goes on at work can be explained by differences in people’s innate value systems. Awareness of such differences and how they impudence work behavior can be very useful to the international manager.
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Compare and contrast the Kluckhohn–Strodtbeck and Hofstede frameworks and their application in understanding culture.
The analysis of both would assist international managers better understand the way organizations function within their own cultural framework.
The Kluckhohn–Strodtbeck framework compares cultures along six cultural dimensions. The following six questions assist the international manager in studying any given culture and in comparing it to a different one:
1. Do people believe that their environment controls them, that they control the environment, or that they are part of nature?
2. Do people focus on past events, on the present, or on the future?
3. Are people easily controlled and not to be trusted, or can they be trusted to act freely and responsibly?
4. Do people desire accomplishments in life, carefree lives, or spiritual lives?
5. Do people believe that individuals or groups are responsible for each person’s welfare?
6. Do people prefer to conduct most activities in private or in public?
Hofstede proposes four value dimensions:
1. Power distance
2. Uncertainty avoidance
3. Individualism
4. Masculinity
Power distance, the .rst value dimension, is the level of acceptance by a society of the unequal distribution of power in organizations. In the workplace, inequalities in power are normal, as evidenced in hierarchical boss–subordinate relationships. In countries in which people display high power distance (such as Malaysia, the Philippines, and Mexico), employees acknowledge the boss’s authority simply by respecting that individual’s formal position in the hierarchy, and they seldom bypass the chain of command. In countries where people display low power distance (such as Austria, Denmark, and Israel), superiors and subordinates are apt to regard one another as equal in power, resulting in more harmony and cooperation.
The second value dimension, uncertainty avoidance, refers to the extent to which people in a society feel threatened by ambiguous situations. Countries with a high level of uncertainty avoidance (such as Japan, Portugal, and Greece) tend to have strict laws and procedures to which their people adhere closely, and a strong sense of nationalism prevails. In a business context, this value results in formal rules and procedures designed to provide more security and greater career stability. Managers have a propensity for low-risk decisions, employees exhibit little aggressiveness, and lifetime employment is common. In countries with lower levels of uncertainty avoidance (such as Denmark, Great Britain, and, to a lesser extent, the United States), nationalism is less pronounced, and protests and other such activities are tolerated. Consequently, company activities are less structured and less formal, with some managers taking more risks, and there is high job mobility.
The third of Hofstede’s value dimensions, individualism, refers to the tendency of people to look after themselves and their immediate family only and neglect the needs of society. In countries that prize individualism (such as the United States, Great Britain, and Australia), democracy, individual initiative, and achievement are highly valued; the relationship of the individual to organizations is one of independence on an emotional level, if not on an economic level. In countries such as Pakistan and Panama where low individualism prevails—that is where collectivism predominates—one .nds tight social frameworks, emotional dependence on belonging to “the organization,” and a strong belief in group decisions. People from a collectivist country, like Japan, believe in the will of the group rather than that of the individual, and their pervasive collectivism exerts control over individual members through social pressure and the fear of humiliation.
The fourth value dimension, masculinity, refers to the degree of traditionally “masculine” values—assertiveness, materialism, and a lack of concern for others—that prevail in a society. In highly masculine societies (e.g., Japan and Austria), women are generally expected to stay at home and raise a family. In organizations, one .nds considerable job stress, and organizational interests generally encroach on employees’ private lives. In countries with low masculinity (such as Switzerland and New Zealand), one .nds less con.ict and job stress, more women in high-level jobs, and a reduced need for assertiveness.
The four cultural dimensions proposed by Hofstede do not operate in isolation; rather they are interdependent and interrelated—and thus complex—in their impact on attitudes and behaviors within the work environment. Again, international managers must remember that the evaluation of an entire country on the basis of any one cultural value dimension is a generalization and thus a possible oversimpli.cation, for variations may occur according to subcultures, regions, and individuals.