This study investigated the impact of a student-centric, output-oriented methodology based on the principles of connectivism for knowledge creation in cross-cultural studies. The task involved selection of native commercial advertisements in which students were expected to work in virtual teams and find cultural differences in their interpretation between the participants from three countries, "India, Austria and Russia." Findings showed that the students acquired knowledge about the host countries' cultures in a unique way and distinguished between facts and fiction through interesting interactions with one another. Additionally, the exercise helped developing a global mind-set along with improving teamwork, time management, decision making, critical thinking and many other skills. The work recommends designing and developing such exercises for teaching effectiveness and knowledge creation in International Business which are more practical and applicable in the real life.