Thomas, Cross-Cultural Management 1e
SAGE Publishing, 2021
Test Bank
CHAPTER 1: THE INTERNATIONAL MANAGER
Multiple Choice
1. According to the chapter, international managers face problems created by a
complex combination of ______.
a. economic, political and cultural factors only
b. economic, legal, political, cultural and technological factors
c. cultural, human, social and technological factors
d. cultural and political factors only
Ans: B
Learning Objective: 1.1 Describe “globalization”
Cognitive Domain: Comprehension
Answer Location: Introduction
Difficulty Level: Medium
AACSB Standard: Contexts of organizations in a global society
2. Which is a key characteristic of globalization?
a. Increase in monocultural workforce.
b. Decline in foreign direct investment.
c. Growing economic interconnectedness.
d. Increase in in-house employees.
Ans: C
Learning Objective: 1.1 Describe “globalization”
Cognitive Domain: Comprehension
Answer Location: Globalization
Difficulty Level: Medium
AACSB Standard: Analytical thinking
3. Local managers and workers are becoming more international because of the
influence of ______.
a. modern technology
b. culture
c. economic events
d. FDI
Ans: A
Learning Objective: 1.1 Describe “globalization”
Cognitive Domain: Knowledge
Answer Location: Introduction
Difficulty Level: Easy
AACSB Standard: Application of knowledge
, Thomas, Cross-Cultural Management 1e
SAGE Publishing, 2021
4. Within the context of globalization, which contextual factor is the most difficult to
understand?
a. legal
b. political
c. culture
d. technological
Ans: C
Learning Objective: 1.1 Describe “globalization”
Cognitive Domain: Knowledge
Answer Location: Introduction
Difficulty Level: Easy
AACSB Standard: Application of knowledge
5. Which of the following is an example of globalization?
a. Cotton growers in India are impacted by the pricing decisions of cotton growers in
USA.
b. Cotton growers in India are impacted by the political decisions made in India.
c. Cotton growers in China are impacted by the weather in Shanghai.
d. Cotton growers in Texas are impacted by the domestic competition in USA.
Ans: A
Learning Objective: 1.1 Describe “globalization”
Cognitive Domain: Analysis
Answer Location: Introduction
Difficulty Level: Medium
AACSB Standard: Analytical thinking
6. Which aspect of globalization is most likely to influence the composition of
organizational context?
a. advances in foreign direct investment
b. advances in information and communication technology
c. cheaper labor in developing countries
d. cultural differences between countries
Ans: B
Learning Objective: 1.2 Identify the influence of information technology on international
management
Cognitive Domain: Knowledge
Answer Location: Increased Use and Sophistication of Information Technology
Difficulty Level: Medium
AACSB Standard: Analytical thinking
7. Which of the following is a result of technological advancements due to globalization?
a. reduced cost of communication
b. increased cost of communication
c. decline in levels of trade competition
d. none of these
Ans: A
, Thomas, Cross-Cultural Management 1e
SAGE Publishing, 2021
Learning Objective: 1.2 Identify the influence of information technology on international
management
Cognitive Domain: Comprehension
Answer Location: Increased Use and Sophistication of Information Technology
Difficulty Level: Easy
AACSB Standard: Analytical thinking
8. The trend toward a more integrated and interdependent global economic system that
has been in place for many years is commonly referred to as ______.
a. market standardization
b. integration of markets
c. globalization
d. cross-border integration
Ans: C
Learning Objective: 1.1 Describe “globalization”
Cognitive Domain: Comprehension
Answer Location: Globalization
Difficulty Level: Medium
AACSB Standard: Analytical thinking | Application of knowledge
9. PQR, Inc. is a bicycle parts distributing company that exports many of its products to
consumers in other countries. PQR, Inc. can be described as engaging in ______.
a. international trade
b. foreign direct investment
c. international investments
d. trade barriers
Ans: A
Learning Objective: 1.1 Describe “globalization”
Cognitive Domain: Application
Answer Location: Growing Economic and Organizational Interconnectedness
Difficulty Level: Hard
AACSB Standard: Analytical thinking | Reflective thinking
10. XYZ is an American company, it has invested significant financial resources in doing
business activities outside USA. This practice is called ______.
a. outsourcing
b. international management
c. international trade
d. foreign direct investment
Ans: D
Learning Objective: 1.5 Outline how the global context of international management
affects managers’ work
Cognitive Domain: Comprehension
Answer Location: More and Different Players on the Global Stage
Difficulty Level: Medium
AACSB Standard: Application of knowledge
, Thomas, Cross-Cultural Management 1e
SAGE Publishing, 2021
11. The investing of firm’s resources in business activities outside a firm’s home country
is called ______.
a. foreign direct investment
b. outsourcing
c. international trade
d. globalization
Ans: A
Learning Objective: 1.1 Describe “globalization”
Cognitive Domain: Comprehension
Answer Location: More and Different Players on the Global Stage
Difficulty Level: Medium
AACSB Standard: Application of knowledge
12. Which of the following is a major cause of lowering trade barriers and increasing
international competition?
a. international trade
b. technological advancements
c. cultural and political factors
d. legal factors
Ans: B
Learning Objective: 1.2 Identify the influence of information technology on international
management
Cognitive Domain: Knowledge
Answer Location: Increased Use and Sophistication of Information Technology
Difficulty Level: Easy
AACSB Standard: Application of knowledge
13. As a result of technological advancements, the costs of information processing and
global communication have ______ over the past few decades.
a. declined drastically
b. marginally declined
c. remained the same
d. increased drastically
Ans: A
Learning Objective: 1.2 Identify the influence of information technology on international
management
Cognitive Domain: Comprehension
Answer Location: Increased Use and Sophistication of Information Technology
Difficulty Level: Easy
AACSB Standard: Application of knowledge | Analytical thinking
14. Across countries at all levels of development, a majority of firms are ______.
a. multinational enterprises
b. public enterprises
c. small enterprises
SAGE Publishing, 2021
Test Bank
CHAPTER 1: THE INTERNATIONAL MANAGER
Multiple Choice
1. According to the chapter, international managers face problems created by a
complex combination of ______.
a. economic, political and cultural factors only
b. economic, legal, political, cultural and technological factors
c. cultural, human, social and technological factors
d. cultural and political factors only
Ans: B
Learning Objective: 1.1 Describe “globalization”
Cognitive Domain: Comprehension
Answer Location: Introduction
Difficulty Level: Medium
AACSB Standard: Contexts of organizations in a global society
2. Which is a key characteristic of globalization?
a. Increase in monocultural workforce.
b. Decline in foreign direct investment.
c. Growing economic interconnectedness.
d. Increase in in-house employees.
Ans: C
Learning Objective: 1.1 Describe “globalization”
Cognitive Domain: Comprehension
Answer Location: Globalization
Difficulty Level: Medium
AACSB Standard: Analytical thinking
3. Local managers and workers are becoming more international because of the
influence of ______.
a. modern technology
b. culture
c. economic events
d. FDI
Ans: A
Learning Objective: 1.1 Describe “globalization”
Cognitive Domain: Knowledge
Answer Location: Introduction
Difficulty Level: Easy
AACSB Standard: Application of knowledge
, Thomas, Cross-Cultural Management 1e
SAGE Publishing, 2021
4. Within the context of globalization, which contextual factor is the most difficult to
understand?
a. legal
b. political
c. culture
d. technological
Ans: C
Learning Objective: 1.1 Describe “globalization”
Cognitive Domain: Knowledge
Answer Location: Introduction
Difficulty Level: Easy
AACSB Standard: Application of knowledge
5. Which of the following is an example of globalization?
a. Cotton growers in India are impacted by the pricing decisions of cotton growers in
USA.
b. Cotton growers in India are impacted by the political decisions made in India.
c. Cotton growers in China are impacted by the weather in Shanghai.
d. Cotton growers in Texas are impacted by the domestic competition in USA.
Ans: A
Learning Objective: 1.1 Describe “globalization”
Cognitive Domain: Analysis
Answer Location: Introduction
Difficulty Level: Medium
AACSB Standard: Analytical thinking
6. Which aspect of globalization is most likely to influence the composition of
organizational context?
a. advances in foreign direct investment
b. advances in information and communication technology
c. cheaper labor in developing countries
d. cultural differences between countries
Ans: B
Learning Objective: 1.2 Identify the influence of information technology on international
management
Cognitive Domain: Knowledge
Answer Location: Increased Use and Sophistication of Information Technology
Difficulty Level: Medium
AACSB Standard: Analytical thinking
7. Which of the following is a result of technological advancements due to globalization?
a. reduced cost of communication
b. increased cost of communication
c. decline in levels of trade competition
d. none of these
Ans: A
, Thomas, Cross-Cultural Management 1e
SAGE Publishing, 2021
Learning Objective: 1.2 Identify the influence of information technology on international
management
Cognitive Domain: Comprehension
Answer Location: Increased Use and Sophistication of Information Technology
Difficulty Level: Easy
AACSB Standard: Analytical thinking
8. The trend toward a more integrated and interdependent global economic system that
has been in place for many years is commonly referred to as ______.
a. market standardization
b. integration of markets
c. globalization
d. cross-border integration
Ans: C
Learning Objective: 1.1 Describe “globalization”
Cognitive Domain: Comprehension
Answer Location: Globalization
Difficulty Level: Medium
AACSB Standard: Analytical thinking | Application of knowledge
9. PQR, Inc. is a bicycle parts distributing company that exports many of its products to
consumers in other countries. PQR, Inc. can be described as engaging in ______.
a. international trade
b. foreign direct investment
c. international investments
d. trade barriers
Ans: A
Learning Objective: 1.1 Describe “globalization”
Cognitive Domain: Application
Answer Location: Growing Economic and Organizational Interconnectedness
Difficulty Level: Hard
AACSB Standard: Analytical thinking | Reflective thinking
10. XYZ is an American company, it has invested significant financial resources in doing
business activities outside USA. This practice is called ______.
a. outsourcing
b. international management
c. international trade
d. foreign direct investment
Ans: D
Learning Objective: 1.5 Outline how the global context of international management
affects managers’ work
Cognitive Domain: Comprehension
Answer Location: More and Different Players on the Global Stage
Difficulty Level: Medium
AACSB Standard: Application of knowledge
, Thomas, Cross-Cultural Management 1e
SAGE Publishing, 2021
11. The investing of firm’s resources in business activities outside a firm’s home country
is called ______.
a. foreign direct investment
b. outsourcing
c. international trade
d. globalization
Ans: A
Learning Objective: 1.1 Describe “globalization”
Cognitive Domain: Comprehension
Answer Location: More and Different Players on the Global Stage
Difficulty Level: Medium
AACSB Standard: Application of knowledge
12. Which of the following is a major cause of lowering trade barriers and increasing
international competition?
a. international trade
b. technological advancements
c. cultural and political factors
d. legal factors
Ans: B
Learning Objective: 1.2 Identify the influence of information technology on international
management
Cognitive Domain: Knowledge
Answer Location: Increased Use and Sophistication of Information Technology
Difficulty Level: Easy
AACSB Standard: Application of knowledge
13. As a result of technological advancements, the costs of information processing and
global communication have ______ over the past few decades.
a. declined drastically
b. marginally declined
c. remained the same
d. increased drastically
Ans: A
Learning Objective: 1.2 Identify the influence of information technology on international
management
Cognitive Domain: Comprehension
Answer Location: Increased Use and Sophistication of Information Technology
Difficulty Level: Easy
AACSB Standard: Application of knowledge | Analytical thinking
14. Across countries at all levels of development, a majority of firms are ______.
a. multinational enterprises
b. public enterprises
c. small enterprises
