INTERNATIONAL MANAGEMENT:
CULTURE, STRATEGY AND BEHAVIOR
2025 RELEASE
Jonathan Doh • Fred Luthans • Ajai Gaur
SOLUTIONS MANUAL
Questions, Suggested Answers, Exercises, Summaries &
Integrative Cases
, TABLE OF CONTENTS
Chapter 1. Globalization and International Linkages
Chapter 2. The Political, Legal, and Technological Environment
Chapter 3. Ethics, Social Responsibility, and Sustainability
Chapter 4. The Meanings and Dimensions of Culture
Chapter 5. Managing Across Cultures
Chapter 6. Organizational Cultures and Diversity
Chapter 7. Cross-Cultural Communication and Negotiation
Chapter 8. Strategy Formulation and Implementation
Chapter 9. Entry Strategies and Organizational Structures
Chapter 10. Managing Political Risk, Government Relations, and Alliances
Chapter 11. Management Decision and Control
Chapter 12. Motivation across Cultures
Chapter 13. Leadership across Cultures
Chapter 14. Human Resource Selection and Development across Cultures
SOLUTIONS MANUAL CONTENT
Review and Discussion Questions
Questions and Suggested Answers
Questions and Answers Following the Exercises
Learning Objectives and Brief Summaries
Brief Integrative Cases
2025 Release • International Management • Culture, Strategy and Behavior
,CHAPTER N0. 1: GLOBALIZATION AND INTERNATIONAL LINKAGES
Review and Discussion Questions
1. How has globalization affected different world regions? What are some of the benefits
and costs of globalization for different sectors of society (companies, workers,
communities)?
Answer: North America continues to constitute one of the largest trading blocs in the
world; the United States leads international trade and investment, and Canada is its largest
trading partner. Mexico is on the verge of becoming the major economic power in Latin
America. However, they still suffer from economic problems. Some South American
countries also suffer from economic problems, while others seem to do better (e.g., Chile,
Brazil, and Argentina until their currency crash). European countries have been most
successful in integrating their economies, with the top challenge being integrating their
former communist neighbors in Central and Eastern Europe. Although the U.K. left the EU
in 2020, Russian military operation in Ukraine has made many Eastern European nations
(Georgia, and Moldova) to consider joining the EU. In addition to Japan and China, there
are a number of other important economies in the Asia-Pacific region, including South
Korea, Hong Kong, and Singapore. Together, the countries of the ASEAN bloc are also
fueling growth and development in the region. India is attractive to multinationals,
especially U.S. and British firms. Many people around the world, including those in the
West, work for Arab employers. Many African nations remain very poor and undeveloped,
and international trade is only beginning to serve as a major source of income.
Globalization and the rise of emerging markets’ MNCs have brought prosperity to many
previously underdeveloped parts of the world. However, developed economies have faced
a number of challenges associated with globalization in the form of some jobs and
economic activity being redirected to lower cost manufacturing locations in Asia, and at
least a perception among some that immigration has created additional competition for
jobs.
2. How has NAFTA/USMCA affected the economies of North America and how has the
EU affected Europe? What importance do these economic pacts have for
international managers in North America, Europe, and Asia?
Answer: The original NAFTA countries agreed to a renegotiated trade agreement, called
the United States-Mexico-Canada Agreement (USMCA) which replaced NAFTA
following its ratification by the US, Canada and Mexico.. USMCA maintains the key
provisions of the original agreement while enacting minor changes aimed at protecting
intellectual property rights, altering car manufacturing regulations to encourage more
North American manufacturing, and opening the Canadian market to tariff-free dairy
imports from the U.S. The EU has made significant progress over the past decade in
, becoming a unified market. In 2003, the EU consisted of 15 nations and has since gained
13 additional nations. Not only have most trade barriers between members been removed,
but a subset of European countries has adopted a unified currency called the euro.
Although the EU saw the U.K. leaving the block in 2020, the Russian invasion of Ukraine
has helped to consolidate support among the 27 bloc members. These economic pacts will
force international managers to stay current on all trade regulations, economic activity, and
status. Different economic systems characterize different countries and regions.
3. How has the COVID-19 pandemic impacted different aspects of business operations
around the world? Has this impact been uniform for all countries? Describe why
some nations could manage the pandemic better than others.
The Impact of COVID-19 on the global economy has been massive. According to an IMF
report, the world has experienced the deepest global recession since the end of World War-
II. In 2020, there was a 3.5 percent contraction in the global economy as compared to the
prediction of 3.4 percent growth for the same year. Almost all aspects of business were
impacted by COVID-19 and following lockdowns, however, supply chains around the
globe were the most impacted. At the peak of the pandemic, governments placed
restrictions on the flow of goods and raw materials that they considered critical for the
domestic markets. International and domestic mobility was also hugely restricted, which
severely impacted businesses that were, directly and indirectly, involved in the travel and
tourism Industry.
The negative impact of COVID-19 was visible across the globe, but many economies
rebounded in 2021 with positive growth, the negative effect is expected to be long-lasting,
especially for poorer countries. While the developed countries were able to recover through
economic stimulus, it was the economy of poorer nations which felt the most distress.
4. Why are Russia and Eastern Europe of interest to international managers? Identify
and describe some reasons for such interest and also risks associated with doing
business in these regions.
Answer: Russia and Eastern Europe are of interest to international managers because they
present an opportunity to get in on the “ground floor.” Even though these countries have
struggled with the transition to a market economy for several years, MNCs that are willing
to take the substantial risks involved with operating in these countries may find substantial
rewards in years to come. However, it is important to highlight that the Russian economy
will remain an extremely difficult market in which to operate with stringent economic
sanctions imposed by the US and EU. Similarly, , investment in other Eastern Europe may
not produce immediate returns. It may be years, perhaps even decades, before some
investments become profitable.
CULTURE, STRATEGY AND BEHAVIOR
2025 RELEASE
Jonathan Doh • Fred Luthans • Ajai Gaur
SOLUTIONS MANUAL
Questions, Suggested Answers, Exercises, Summaries &
Integrative Cases
, TABLE OF CONTENTS
Chapter 1. Globalization and International Linkages
Chapter 2. The Political, Legal, and Technological Environment
Chapter 3. Ethics, Social Responsibility, and Sustainability
Chapter 4. The Meanings and Dimensions of Culture
Chapter 5. Managing Across Cultures
Chapter 6. Organizational Cultures and Diversity
Chapter 7. Cross-Cultural Communication and Negotiation
Chapter 8. Strategy Formulation and Implementation
Chapter 9. Entry Strategies and Organizational Structures
Chapter 10. Managing Political Risk, Government Relations, and Alliances
Chapter 11. Management Decision and Control
Chapter 12. Motivation across Cultures
Chapter 13. Leadership across Cultures
Chapter 14. Human Resource Selection and Development across Cultures
SOLUTIONS MANUAL CONTENT
Review and Discussion Questions
Questions and Suggested Answers
Questions and Answers Following the Exercises
Learning Objectives and Brief Summaries
Brief Integrative Cases
2025 Release • International Management • Culture, Strategy and Behavior
,CHAPTER N0. 1: GLOBALIZATION AND INTERNATIONAL LINKAGES
Review and Discussion Questions
1. How has globalization affected different world regions? What are some of the benefits
and costs of globalization for different sectors of society (companies, workers,
communities)?
Answer: North America continues to constitute one of the largest trading blocs in the
world; the United States leads international trade and investment, and Canada is its largest
trading partner. Mexico is on the verge of becoming the major economic power in Latin
America. However, they still suffer from economic problems. Some South American
countries also suffer from economic problems, while others seem to do better (e.g., Chile,
Brazil, and Argentina until their currency crash). European countries have been most
successful in integrating their economies, with the top challenge being integrating their
former communist neighbors in Central and Eastern Europe. Although the U.K. left the EU
in 2020, Russian military operation in Ukraine has made many Eastern European nations
(Georgia, and Moldova) to consider joining the EU. In addition to Japan and China, there
are a number of other important economies in the Asia-Pacific region, including South
Korea, Hong Kong, and Singapore. Together, the countries of the ASEAN bloc are also
fueling growth and development in the region. India is attractive to multinationals,
especially U.S. and British firms. Many people around the world, including those in the
West, work for Arab employers. Many African nations remain very poor and undeveloped,
and international trade is only beginning to serve as a major source of income.
Globalization and the rise of emerging markets’ MNCs have brought prosperity to many
previously underdeveloped parts of the world. However, developed economies have faced
a number of challenges associated with globalization in the form of some jobs and
economic activity being redirected to lower cost manufacturing locations in Asia, and at
least a perception among some that immigration has created additional competition for
jobs.
2. How has NAFTA/USMCA affected the economies of North America and how has the
EU affected Europe? What importance do these economic pacts have for
international managers in North America, Europe, and Asia?
Answer: The original NAFTA countries agreed to a renegotiated trade agreement, called
the United States-Mexico-Canada Agreement (USMCA) which replaced NAFTA
following its ratification by the US, Canada and Mexico.. USMCA maintains the key
provisions of the original agreement while enacting minor changes aimed at protecting
intellectual property rights, altering car manufacturing regulations to encourage more
North American manufacturing, and opening the Canadian market to tariff-free dairy
imports from the U.S. The EU has made significant progress over the past decade in
, becoming a unified market. In 2003, the EU consisted of 15 nations and has since gained
13 additional nations. Not only have most trade barriers between members been removed,
but a subset of European countries has adopted a unified currency called the euro.
Although the EU saw the U.K. leaving the block in 2020, the Russian invasion of Ukraine
has helped to consolidate support among the 27 bloc members. These economic pacts will
force international managers to stay current on all trade regulations, economic activity, and
status. Different economic systems characterize different countries and regions.
3. How has the COVID-19 pandemic impacted different aspects of business operations
around the world? Has this impact been uniform for all countries? Describe why
some nations could manage the pandemic better than others.
The Impact of COVID-19 on the global economy has been massive. According to an IMF
report, the world has experienced the deepest global recession since the end of World War-
II. In 2020, there was a 3.5 percent contraction in the global economy as compared to the
prediction of 3.4 percent growth for the same year. Almost all aspects of business were
impacted by COVID-19 and following lockdowns, however, supply chains around the
globe were the most impacted. At the peak of the pandemic, governments placed
restrictions on the flow of goods and raw materials that they considered critical for the
domestic markets. International and domestic mobility was also hugely restricted, which
severely impacted businesses that were, directly and indirectly, involved in the travel and
tourism Industry.
The negative impact of COVID-19 was visible across the globe, but many economies
rebounded in 2021 with positive growth, the negative effect is expected to be long-lasting,
especially for poorer countries. While the developed countries were able to recover through
economic stimulus, it was the economy of poorer nations which felt the most distress.
4. Why are Russia and Eastern Europe of interest to international managers? Identify
and describe some reasons for such interest and also risks associated with doing
business in these regions.
Answer: Russia and Eastern Europe are of interest to international managers because they
present an opportunity to get in on the “ground floor.” Even though these countries have
struggled with the transition to a market economy for several years, MNCs that are willing
to take the substantial risks involved with operating in these countries may find substantial
rewards in years to come. However, it is important to highlight that the Russian economy
will remain an extremely difficult market in which to operate with stringent economic
sanctions imposed by the US and EU. Similarly, , investment in other Eastern Europe may
not produce immediate returns. It may be years, perhaps even decades, before some
investments become profitable.
