
- •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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What is parochialism? Culture shock? Ethnocentrism? Provide examples.
Parochialism occurs when a German, for example, expects those from or in another country to automatically fall into patterns of behavior common in Germany. Ethnocentrism describes the attitude of those who operate from the assumption that their ways of doing things are best no matter where or under what conditions they are applied. Aggressive ethnocentrism results in serious and large-scale violation of rights based on origin, gender, language and religion. Africa has played scene to many of these ethnic uprisings and genocide (conflicts).
Culture shock refers to the anxiety and feelings (of surprise, disorientation, uncertainty, confusion, etc.) felt when people have to operate within a different and unknown cultural or social environment, such as a foreign country. It grows out of the difficulties inassimilating the new culture, causing difficulty in knowing what is appropriate and what is not. This is often combined a dislike for or even disgust (moral or aesthetical) with certain aspects of the new or different culture.
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What are the phases of the culture shock? Explain the methods of dealing with culture shock
Honeymoon Phase - During this period the differences between the old and new culture are seen in a romantic light, wonderful and new. For example, in moving to a new country, an individual might love the new foods, the pace of the life, the people's habits, the buildings and so on.
Negotiation Phase - After some time (usually weeks), differences between the old and new culture become apparent and may create anxiety. One may long for food the way it is prepared in one's native country, may find the pace of life too fast or slow, may find the people's habits annoying, disgusting, and irritating etc. This phase is often marked by mood swings caused by minor issues or without apparent reason. Depression is not uncommon.
Adjustment Phase - Again, after some time (usually 6 - 12 months), one grows accustomed to the new culture and develops routines. One knows what to expect in most situations and the host country no longer feels all that new. One becomes concerned with basic living again, and things become more "normal".
Reverse Culture Shock (a.k.a. Re-entry Shock) - Returning to one's home culture after growing accustomed to a new one can produce the same effects as described above, which an affected person often find more surprising and difficult to deal with as the original culture shock.
Methods:
1) Know that it is a normal part of adjusting to a new culture and that others are or have experienced it too.
2) Learn the language. Being fluent will take time and practice, but you’ll never get there if you don’t start. Don’t be ashamed to cary a dictionary around with you. If people know you are trying it’s amazing how helpful they can be.
3) Join the gym, an organization, or take classes. All of these things will force you to get out of the house and interact with others. Plus if you are used to being in shape then getting sluggish will just add to your depression.
4) Be realistic. You aren’t going to conquer a new culture in a day. And even once you think you’ve overcome your culture shock, you’ll still have your bad days. But didn’t that even happen at home?
5) Become a regular and learn key people who can help. If your grocer or a certain clerk at the post office knows you, it’s likely that he/she will give you helpful hints and help you with the language as well. They will be proud when you start speaking to them in their native tongue.
6) Learn as much about the culture before you go as you can. Do you know people from the place you are going or people who have spent time there in the past? Listen to their stories. Ask questions. And don't doubt their experiences. Don't think "Well that may have happened to you, but it won't happen to me" because chances are, it will.