International Business, 14e (Daniels et al.) Chapter 2 The Cultural Environments Facing Business



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International Business, 14e (Daniels et al.)

Chapter 2 The Cultural Environments Facing Business
1) ________ consists of specific learned norms based on attitudes, values, and beliefs of a group of people.

A) Ethnology

B) Civilization

C) Culture

D) Doctrine

Answer: C

Diff: 1

Skill: Concept



Objective: 1

AACSB: Multicultural and diversity understanding


2) Which of the following is NOT true about cultural diversity?

A) Companies may gain competitive advantages by bringing together people of diverse backgrounds.

B) Cultural diversity is most successful when domestic and foreign firms establish joint ventures.

C) Cultural diversity may help a company gain deeper knowledge about products and services.

D) The process of bringing people of different national cultures together is often difficult.

Answer: B

Diff: 3

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 1

AACSB: Multicultural and diversity understanding
3) Because people can be grouped or classified in many ways, such as on the basis of nationality, ethnicity, religion, profession, and income level, ________.

A) people live in a state of cultural collision

B) cultural studies fail to understand behaviors

C) identity crises make individual's lives chaotic

D) people have more than one cultural group membership

Answer: D

Diff: 2

Skill: Concept



Objective: 1

AACSB: Multicultural and diversity understanding


4) When divergent cultures come in contact, ________ occurs.

A) power distance

B) culture shock

C) cultural collision

D) group membership

Answer: C

Diff: 1

Skill: Concept



Objective: 1

AACSB: Multicultural and diversity understanding


5) Which of the following best describes a result of cultural collision in international business?

A) A company implements practices that are less effective than intended.

B) Local employees are overlooked for promotions by home country managers.

C) Expatriate managers rely too heavily on local employees for negotiating business deals.

D) Foreign and domestic companies make adjustments for the local culture and legal environment.

Answer: A

Diff: 3

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Application

Objective: 1

AACSB: Multicultural and diversity understanding
6) Which of the following is the most accurate statement about culture?

A) Cultural variables can easily be isolated from other factors such as economic and political conditions.

B) Although most cultural variables are universal, the forms these variables take differ from culture to culture.

C) Most cultural variables are superficial and can easily be influenced by environmental factors.

D) Within a culture, everyone responds to particular cultural variables the same way.

Answer: B

Diff: 3

Skill: Concept



Objective: 1

AACSB: Multicultural and diversity understanding


7) Businesspeople seeking to understand more about another culture in order to successfully conduct business within that culture would be best advised to do which of the following?

A) observing the behavior of people who have gained respect within that cultural environment

B) relying on stereotypes, which are based on averages, to gain an understanding of the culture

C) avoiding cultural research studies because they perpetuate unjustified stereotypes and behaviors

D) memorizing the cultural variations that are typically encountered in a specific cultural environment

Answer: A

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Application

Objective: 1

AACSB: Multicultural and diversity understanding
8) Which of the following is a common shortcoming of studies examining culture in different countries and regions?

A) Cultures are static, which leads researchers to draw false conclusions from old data.

B) It is impossible to compare countries because of differences in data.

C) Responses are reported in averages, which can lead to a belief in unrealistic stereotypes.

D) People are reluctant to complain about their own cultures, so they present only positive opinions to researchers.

Answer: C

Diff: 3

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 1

AACSB: Multicultural and diversity understanding
9) The nation offers a workable reference for studying cultural differences because ________.

A) a nation contains only one distinct culture

B) similarity among people is both a cause and effect of national boundaries

C) the commonality of language within a nation eases the process of conducting surveys

D) different groups within the same country always have more in common with each other than with groups in other countries

Answer: B

Diff: 2

Skill: Concept



Objective: 2

AACSB: Multicultural and diversity understanding


10) A problem of using the nation as a reference point for culture is that ________.

A) nations fail to mediate the different interests within their boundaries

B) self-stereotypes tend to fall along national lines

C) such an approach tends to be polycentric

D) variations tend to be great within a country

Answer: D

Diff: 2

Skill: Concept



Objective: 2

AACSB: Multicultural and diversity understanding


11) Certain attitudes can link groups, such as managers, from different nations more closely than managers with labor within a given nation. As a result, international businesspeople should most likely ________.

A) assume that there are few significant cultural differences among nations

B) examine relevant groups when comparing nations

C) adopt universal operating methods

D) avoid cultural imperialism

Answer: B

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 2

AACSB: Multicultural and diversity understanding
12) It is most accurate to say that within most nation's borders, people largely share such essential attributes as ________ and ________.

A) work attitudes; occupations

B) lifestyles; education level

C) education level; ethnicity

D) values; language

Answer: D

Diff: 2

Skill: Concept



Objective: 2

AACSB: Multicultural and diversity understanding


13) Most people's basic value system is ________.

A) modified significantly between childhood and adulthood

B) altered during adulthood through imposition

C) affected primarily by teenage peer pressure

D) acquired mainly during early childhood

Answer: D

Diff: 2

Skill: Concept



Objective: 2

AACSB: Multicultural and diversity understanding


14) Contact among countries brings about cultural change, which is a process called ________.

A) cultural collision

B) cultural imperialism

C) cultural diffusion

D) polycentrism

Answer: C

Diff: 2

Skill: Concept



Objective: 2

AACSB: Multicultural and diversity understanding


15) Creolization refers to ________.

A) government efforts to maintain a distinct cultural identity through legislation and language

B) the process of mixing elements of an outside culture with those of a national culture

C) the use of stereotypes to describe a culture

D) changes as cultures evolve over time

Answer: B

Diff: 2

Skill: Concept



Objective: 2

AACSB: Multicultural and diversity understanding


16) Cultural change imposed by an alien culture is called ________.

A) multicultural ethnocentrism

B) cultural imperialism

C) collectivism

D) high-context

Answer: B

Diff: 1

Skill: Concept



Objective: 2

AACSB: Multicultural and diversity understanding


17) Which of the following languages has the most native speakers?

A) English

B) Mandarin

C) Spanish

D) Hindi

Answer: B

Diff: 1

Skill: Concept



Objective: 2

AACSB: Multicultural and diversity understanding


18) ________ peoples account for the largest percentage of global production.

A) English-speaking

B) Mandarin-speaking

C) French-speaking

D) Spanish-speaking

Answer: A

Diff: 2

Skill: Concept



Objective: 2

AACSB: Multicultural and diversity understanding


19) Which of the following statements about the English language is most likely NOT true?

A) The largest portion of global output is in English-speaking countries.

B) A large portion of MNEs are headquartered in English-speaking countries.

C) English is the official national language in most countries where FDI is encouraged.

D) Many MNEs from non-English speaking countries use English as their operating language.

Answer: C

Diff: 3

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 2

AACSB: Multicultural and diversity understanding
20) Although English is referred to as the "international language of business,"________.

A) it is less frequently used than French in international business

B) there is a growing disagreement over which version of English to use, e.g. British, American, or Australian

C) companies headquartered outside English-speaking countries all use their official language as their operating language

D) monolingual English speakers may experience more difficulty in the future in communicating on a worldwide basis

Answer: D

Diff: 3

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 2

AACSB: Multicultural and diversity understanding
21) International businesspeople need to understand social stratification systems where they do business because ________.

A) such systems reflect a culture's willingness to accept new products

B) such systems indicate who people in a given culture will likely respect more

C) the high similarity among countries lets firms effectively use global hiring practices

D) what is an ascribed group membership in one country is an acquired one in another

Answer: B

Diff: 3

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
22) Which of the following is an example of an acquired group membership?

A) national origin

B) religion

C) gender

D) race

Answer: B



Diff: 1

Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding


23) The more closed a society is, the more important ________ group membership is.

A) acquired

B) age-based

C) education

D) ascribed

Answer: D

Diff: 2

Skill: Concept



Objective: 3

AACSB: Multicultural and diversity understanding


24) Studies indicate a strong correlation between the intensity of religious belief and ________.

A) a desire to convert productivity gains into more leisure time

B) an adherence to some attributes that lead to economic growth

C) the belief that material success is related to salvation

D) the degree of ethnocentrism exhibited in a culture

Answer: B

Diff: 2

Skill: Concept



Objective: 3

AACSB: Multicultural and diversity understanding


25) According to the theory of success and reward expectation, the greatest enthusiasm for work generally occurs when there is a ________ certainty of success combined with a ________ reward for success compared to the reward for failure.

A) high; high

B) high; low

C) low; high

D) low; low

Answer: C

Diff: 2

Skill: Concept



Objective: 3
26) The term "________ culture" describes a country in which the norm is a money-and-things orientation and a belief that it's better to "live to work" than to "work to live."

A) high masculinity

B) physiological

C) non-fatalistic

D) high-femininity

Answer: A

Diff: 1

Skill: Concept



Objective: 3

AACSB: Multicultural and diversity understanding


27) Based on the hierarchy-of-needs theory, in which of the following would fulfillment of lower-order needs be the best motivator?

A) wealthy countries

B) Protestant countries

C) high femininity countries

D) very poor countries

Answer: D

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
28) People generally prefer little consultation between superiors and subordinates in cultures where ________ is high.

A) power distance

B) fatalism

C) individualism

D) self-actualization

Answer: A

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
29) Which of the following is characterized by low dependence on an organization and a desire for personal time, freedom, and challenges?

A) collectivism

B) democracy

C) individualism

D) anarchy

Answer: C

Diff: 1

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
30) Assume a firm has operations in Tokyo, where there is a collectivist culture. Which of the following would most likely motivate the firm's Japanese employees?

A) "employee-of-the-month" programs

B) extensive vacation time

C) on-the-job challenges

D) good health benefits

Answer: D

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Application

Objective: 3

AACSB: Multicultural and diversity understanding
31) Safe work environments motivate ________; challenges motivate ________.

A) individualists; collectivists

B) collectivists; individualists

C) non-fatalists; fatalists

D) materialists; non-materialists

Answer: B

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
32) Managers should be more precise in their directions to subordinates when ________.

A) the company has a philosophy of geocentrism

B) the society believes age equals wisdom

C) uncertainty avoidance is high

D) power distance is low

Answer: C

Diff: 2

Learning Outcome: Discuss the role of ethics and social responsibility in international business



Skill: Application

Objective: 3

AACSB: Multicultural and diversity understanding
33) In societies where trust is high, ________.

A) people tend to be more future-oriented

B) business costs are typically lower

C) people tend to be more fatalistic

D) family businesses are dominant

Answer: B

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
34) Expatriate managers located in cultures characterized by ________ have noticed that local employees are highly motivated by retirement programs.

A) low uncertainty avoidance

B) high future orientation

C) low masculinity

D) high power distance

Answer: B

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Application

Objective: 3

AACSB: Multicultural and diversity understanding
35) Raj, an engineer, works long hours and takes full responsibility for both his good and bad work performance. Raj most likely believes in ________.

A) self-determination

B) low power distance

C) collectivism

D) fatalism

Answer: A

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Application

Objective: 3

AACSB: Multicultural and diversity understanding
36) In a(n) ________ culture, people tend to regard seemingly peripheral information as pertinent to decision making and infer meanings from things that people say either indirectly or casually.

A) pragmatic

B) idealistic

C) fatalistic

D) high-context

Answer: D

Diff: 1

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
37) A culture in which people prefer to finish one task before starting another is most accurately characterized as which of the following?

A) low-context

B) monochronic

C) pragmatic

D) high power-distance

Answer: B

Diff: 1

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
38) A culture that prefers to first settle general principles rather than small issues is most accurately characterized as ________.

A) idealist

B) polychronic

C) high-context

D) pragmatist

Answer: A

Diff: 1

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
39) The attempt to resolve small issues before principles is a characteristic of which of the following?

A) relativism

B) monochronic behavior

C) pragmatism

D) uncertainty avoidance

Answer: C

Diff: 1

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
40) All of the following are international business translation problems EXCEPT which of the following?

A) All written work requires back translation in order to be understood in a second language.

B) Because languages and the common meaning of words are constantly evolving, the intended meaning of a word may be different from what the listener or reader understands.

C) Some words in one language simply don't have a direct translation into another language.

D) Words mean different things in different contexts, thus the wrong context may be translated.

Answer: A

Diff: 3

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Communication abilities
41) When a company does business in another country whose official language is the same as its home country's, the company should most likely ________.

A) assume that communications will go smoothly

B) use back-translation on all written documents

C) realize that words may have different meanings

D) assume that word meanings are the same despite spelling differences

Answer: C

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Communication abilities
42) Jack, an American accounts manager, is preparing a presentation for a group of Japanese businesspeople. Jack's presentation would be most effective if he ________.

A) told an opening joke to put everyone at ease

B) used slang to create an informal atmosphere

C) used long words to impress his counterparts

D) budgeted extra time for translation and clarification

Answer: D

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Application

Objective: 3

AACSB: Communication abilities
43) Evaluating the importance of potential clients or partners by the way they dress is an example of using ________.

A) pragmatism

B) silent language

C) polychronism

D) fatalism

Answer: B

Diff: 2

Skill: Concept



Objective: 3

AACSB: Communication abilities


44) The term "cultural distance" refers to the ________.

A) physical space between people during communication

B) time it takes people to adjust to the language, traditions, and norms of a foreign culture

C) degree to which countries differ on cultural dimensions

D) preferred relationship between superiors and subordinates in a given culture

Answer: C

Diff: 1

Skill: Concept



Objective: 4

AACSB: Multicultural and diversity understanding


45) Ellen, a U.S. citizen, worked for a U.S. firm in Germany for four years and was transferred back to the firm's home office in Chicago two months ago. Ellen feels significant dissatisfaction with her job and life in Chicago, which is most likely a result of ________.

A) reverse culture shock

B) polycentrism

C) culture shock

D) ethnocentrism

Answer: A

Diff: 1

Skill: Application



Objective: 4

AACSB: Multicultural and diversity understanding


46) One of the potential problems for an MNE that practices too much polycentrism is ________.

A) demanding that local communication methods be replaced with modern technology

B) underestimating the complexity of introducing new management practices

C) losing innovative capabilities to less-risky host-country practices

D) relying too much on home-country directions and policies

Answer: C

Diff: 3

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 4

AACSB: Multicultural and diversity understanding
47) Ethnocentrism in international business refers to the ________.

A) study of group ethics and approaches to corporate social responsibility

B) comparison of the Protestant ethic with other religious views

C) belief that what works best at home should work best everywhere

D) ethnic segmentation of marketing programs within countries

Answer: C

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 4

AACSB: Multicultural and diversity understanding
48) The approach a company takes when it bases foreign operations on an informed knowledge of its organizational culture along with home- and host-country needs, capabilities, and constraints is called ________.

A) polycentrism

B) ethnocentrism

C) neocentrism

D) geocentrism

Answer: D

Diff: 1

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 5

AACSB: Multicultural and diversity understanding
49) A firm that concentrates on national cultural differences in terms of averages is more likely to ________.

A) underestimate market demands

B) increase political risks

C) seek cultural collision

D) overlook outliers

Answer: D

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 4

AACSB: Multicultural and diversity understanding
50) Organizing work differently to improve productivity will likely fail ________.

A) if the work force has a low tolerance for authoritarianism

B) if workers participate in planning the improvement

C) unless changes are compatible to competitor's practices

D) if changes interfere with strongly held value systems

Answer: D

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 4

AACSB: Multicultural and diversity understanding
51) When a company wishes to introduce change in a foreign country, its likelihood of success can most likely be improved by ________.

A) introducing many changes simultaneously

B) gaining the support of local opinion leaders

C) agreeing to make some home-country changes in return

D) employing expatriate managers to supervise local workers

Answer: B

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 4

AACSB: Multicultural and diversity understanding
52) If an MNE convinced a popular priest that its vitamin-enriched soft drink would benefit parishioners' health, the MNE would be using ________ to help bring about change.

A) participation

B) reward sharing

C) an opinion leader

D) materialistic motivation

Answer: C

Diff: 2

Skill: Application



Objective: 4
53) U.S. companies monopolize much of the international entertainment media, which largely portrays U.S. products and lifestyles as glamorous and appealing. This situation would most likely be used as an example of ________.

A) the stronger work ethic typical of developed countries

B) the spread of high-context cultures

C) cultural fragmentation

D) cultural imperialism

Answer: D

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Application

Objective: 4

AACSB: Multicultural and diversity understanding
54) The fact that an English word such as blue-jeans has entered the Spanish language, while a Spanish word such as macho has come into American English illustrates that ________.

A) cultural diffusion is a two-way process

B) cultural trends come from emerging nations

C) existing national borders are shifting

D) material cultures are becoming universal

Answer: A

Diff: 2

Skill: Application



Objective: 4
55) American hamburgers, Japanese sushi, Italian pizza, Mexican tacos, and Middle Eastern pita bread are now commonly found in most countries. This best supports the argument that ________.

A) although visible expressions of culture are becoming homogenized, basic differences in societal values remain strong

B) globalization fulfills lower order needs in Maslow's hierarchy

C) cultural imperialism is increasingly widespread

D) cultural hybridization is occurring

Answer: D

Diff: 2

Skill: Application



Objective: 4
56) In the opening case on the Java Lounge in Saudi Arabia, Saudi businessmen engaged in chit-chat while drinking coffee at a café during the conduct of business. Which of the following was the most likely reason for their behavior?

A) They are fatalistic, believing that the business outcome was predetermined.

B) Their religious convictions kept them from discussing business over alcoholic drinks.

C) They come from a polychronic culture that prefers to multitask.

D) They come from a high-context culture in which small talk and seemingly unrelated information is important to decision making.

Answer: D

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Application

Objective: 3

AACSB: Multicultural and diversity understanding
57) In the opening case on the Java Lounge in Saudi Arabia, people in the port city of Jeddah were less culturally conservative than people in the interior of the country. The most likely reason for this is that ________.

A) people in the port cities have more contact with foreigners

B) the coastal area has to trade with countries using different religious holidays

C) the coastal area has a culture with a higher uncertainty avoidance

D) the coastal area is secular, whereas the interior of Saudi Arabia has a state religion

Answer: A

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
58) Assume a firm plans to expand internationally. If its managers wish to avoid pitfalls caused by differences in "silent language," they should consider differences in ________.

A) normal proximity during conversations

B) degree of detail expected in written contract

C) the meaning of slang words during presentations

D) importance of adherence to schedules

Answer: A

Diff: 3

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Critical Thinking

Objective: 2

AACSB: Multicultural and diversity understanding
59) Assume a U.S. firm plans to expand into either Mexico, Germany, or Japan. Its executives are traveling to each country to meet with local businesspeople in the decision-making process. Which of the following would be LEAST beneficial when the executives make a presentation?

A) requesting a translator with technical vocabulary knowledge

B) simplifying vocabulary and terminology for the audience

C) conducting back translations for written work

D) avoiding repetition to prevent boredom

Answer: D

Diff: 3

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Critical Thinking

Objective: 3

AACSB: Communication abilities
60) The specific learned norms based on attitudes, values, and beliefs of a group of people are known as ethnology.

Answer: FALSE

Diff: 1

Skill: Concept



Objective: 1

AACSB: Multicultural and diversity understanding


61) Many firms gain a global competitive advantage by fostering cultural diversity.

Answer: TRUE

Diff: 1

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 1

AACSB: Multicultural and diversity understanding
62) Most cultural variables are universal.

Answer: TRUE

Diff: 1

Skill: Concept



Objective: 1

AACSB: Multicultural and diversity understanding


63) The lack of cultural guidebooks and research specifically for international managers poses a significant problem for global firms.

Answer: FALSE

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 1

AACSB: Multicultural and diversity understanding
64) Similarity among people is both a cause and effect of national boundaries.

Answer: TRUE

Diff: 2

Skill: Concept



Objective: 1

AACSB: Multicultural and diversity understanding


65) Cultures do not transcend national boundaries.

Answer: FALSE

Diff: 2

Skill: Concept



Objective: 1

AACSB: Multicultural and diversity understanding


66) The identity of a nation is typically promoted through symbols, monuments, and museums.

Answer: TRUE

Diff: 2

Skill: Concept



Objective: 1

AACSB: Multicultural and diversity understanding


67) Most people's basic values are acquired during childhood and are not readily changed later in life.

Answer: TRUE

Diff: 2

Skill: Concept



Objective: 1

AACSB: Multicultural and diversity understanding


68) Cultural change may come by choice or imposition.

Answer: TRUE

Diff: 1

Skill: Concept



Objective: 2

AACSB: Multicultural and diversity understanding


69) Creolization refers to the mixing of cultural elements that occurs during cultural diffusion.

Answer: TRUE

Diff: 2

Skill: Concept



Objective: 2

AACSB: Multicultural and diversity understanding


70) English-speaking peoples account for a larger portion of global output than people who speak any other language.

Answer: TRUE

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 2

AACSB: Multicultural and diversity understanding
71) National origin is an acquired group membership.

Answer: FALSE

Diff: 2

Skill: Concept



Objective: 3

AACSB: Multicultural and diversity understanding


72) Although countries are similar in terms of having a mandatory retirement age, they differ in what that age is.

Answer: TRUE

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
73) There is a strong correlation between the intensity of religious belief and attributes that lead to economic growth, such as obeying laws and thriftiness.

Answer: TRUE

Diff: 2

Skill: Concept



Objective: 3

AACSB: Multicultural and diversity understanding


74) In a country with a high masculinity score, people have a tendency to feel sympathy towards individuals who are unemployed or homeless.

Answer: FALSE

Diff: 2

Skill: Concept



Objective: 3

AACSB: Multicultural and diversity understanding


75) Preference for a consultative management style is prevalent in a society with low power distance.

Answer: TRUE

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
76) In collectivist cultures based on kinship, security and social needs are met more effectively in the workplace than at home.

Answer: FALSE

Diff: 1

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
77) In societies where trust is high, there tends to be a lower cost of doing business.

Answer: TRUE

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
78) Where future orientation is high, people are more willing to delay gratification by investing.

Answer: TRUE

Diff: 1

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
79) A culture in which people prefer to handle tasks sequentially is a polychronic culture.

Answer: FALSE

Diff: 1

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
80) A culture with a preference for a problem-solving style that first settles principles is a pragmatic culture.

Answer: FALSE

Diff: 1

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
81) When dealing in business with people from another county, it is good to use slang and tell jokes to put everyone at ease.

Answer: FALSE

Diff: 2

Skill: Concept



Objective: 3

AACSB: Communication abilities


82) When a company does business in another country whose official language is the same as the company's home country, employees can assume that although some spellings are different that words will mean the same thing.

Answer: FALSE

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Communication abilities
83) A firm that begins operating in a culturally similar foreign country will most likely face few necessary cultural adjustments.

Answer: TRUE

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 4

AACSB: Multicultural and diversity understanding
84) A potential problem of polycentrism is failure to introduce innovative superiority.

Answer: TRUE

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 4

AACSB: Multicultural and diversity understanding
85) Ethnocentric firms typically use the same business practices in all cultures and markets.

Answer: TRUE

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 4

AACSB: Multicultural and diversity understanding
86) A widely successful strategy for introducing change into a foreign country is to introduce many changes simultaneously.

Answer: FALSE

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 4

AACSB: Multicultural and diversity understanding
87) According to experts, stakeholder participation in decision making is effective only in countries with an educated population.

Answer: FALSE

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 4

AACSB: Multicultural and diversity understanding
88) Change agents intentionally cause or accelerate social and cultural change.

Answer: TRUE

Diff: 2

Skill: Concept



Objective: 2

AACSB: Multicultural and diversity understanding


89) Geocentrism is the preferred approach to international business practices for most global firms.

Answer: TRUE

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Concept

Objective: 3

AACSB: Multicultural and diversity understanding
90) What are the advantages and disadvantages of using a nation as a point of reference for a culture?

Answer: The nation provides a workable definition of a culture for international business because basic similarity among people is both a cause and an effect of national boundaries. The laws governing business operations also apply primarily along national lines. Within the bounds of a nation are people who largely share essential attributes, such as values, language, and race. However, these shared attributes do not mean that everyone in a country is alike, nor do they suggest that each country is unique in all respects.

Diff: 3

Skill: Critical Thinking



Objective: 1

AACSB: Multicultural and diversity understanding


91) In a short essay, describe the various affiliations upon which a person's status can be based and discuss how social stratification affects such business functions as marketing and employment practices.

Answer:


a. A person's status is partly determined by individual factors and partly by the person's affiliation or membership in a given group. Affiliations determined by birth—known as ascribed group memberships—include those based on gender, family, age, caste, and ethnic, racial, or national origin. Affiliations not determined by birth are called acquired group memberships and include those based on religion, political affiliation, and professional and other associations.

b. Social stratification affects marketing as companies choose to use people in their advertisements whom their target market admires or associates with. Further, stratification affects employment practices such as hiring, promotion, compensation, and staff-reduction. Employers in different countries are differently influenced by social stratification as they make employment decisions.

Diff: 3

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Critical Thinking

Objective: 3

AACSB: Multicultural and diversity understanding
92) Describe the four major theories discussed in your text that explain why motivation differs from one country to another.

Answer:


a. Materialism and Leisure: Historically, there is strong evidence that the desire for material wealth is a prime incentive for the work that leads to economic development.

b. Expectation of Success and Reward: Generally, people have little enthusiasm for efforts that seem too easy or too difficult, where the probability of either success or failure seems almost certain. The greatest enthusiasm for work exists when high uncertainty of success is combined with the likelihood of a very positive reward for success and little or none for failure.

c. Masculinity-Femininity Index: The average interest in career success varies substantially among countries. In one study, employees with a high masculinity score were those who admired the successful achiever, had little sympathy for the unfortunate, and preferred to be the best rather than be on a par with others.

d. Needs Hierarchy: According to this theory, people try to fulfill lower-order needs sufficiently before moving on to higher ones. People will work to satisfy a need, but once it is fulfilled, it is no longer a motivator.

Diff: 3

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Application

Objective: 3

AACSB: Multicultural and diversity understanding
93) What are the characteristics of individualist and collectivist cultures?

Answer: Attributes of individualism are low dependence on the organization and a desire for personal time, freedom, and challenge. Attributes of collectivism are dependence on the organization and a desire for training, good physical conditions, and benefits. In those countries with high individualism, self-actualization will be a prime motivator because employees want challenges. However, in countries with high collectivism, the provision of a safe physical and emotional environment will be a prime motivator.

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Application

Objective: 3

AACSB: Multicultural and diversity understanding
94) What is the difference between a low-context culture and a high-context culture? How do these differences affect communication in international business dealings?

Answer: Low-context cultures are environments in which most people consider relevant only firsthand information that bears directly on the decision they need to make. In business, they spend little time on "small talk." High-context cultures are environments in which people consider peripheral information valuable to decision making. When managers from the two types of cultures deal with each other, the low-context individuals may believe the high-context ones are inefficient and time-wasters. The high-context individuals may believe the low-context ones are too aggressive to be trusted.

Diff: 2

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Synthesis

Objective: 2, 3

AACSB: Communication abilities
95) What is the difference between a monochronic and polychronic culture? How do such cultural differences affect business practices for international firms?

Answer: Cultures such as those in Northern Europe are called monochronic. People prefer to work sequentially, such as finishing with one customer before dealing with another. Conversely, polychronic Southern Europeans are more comfortable working simultaneously with all the tasks they face. Such cultural differences affect the degree of multitasking with which people are comfortable. International companies and individuals must evaluate their business and personal practices to ensure that their behavior may fit with the culture.

Diff: 3

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Synthesis

Objective: 2, 3

AACSB: Multicultural and diversity understanding
96) What factors influence cultural stability and cultural change? What factors influence how much cultural adjustment organizations must make in foreign countries?

Answer: Individual and cultural values and customs may evolve over time. Change may come about through choice or imposition. Change by choice may take place as a reaction to social and economic changes that present new alternatives. Change by imposition, sometimes called cultural imperialism, has occurred, for example, when countries introduce legal systems into colonies by prohibiting established practices and defining them as criminal. In addition to national boundaries and geographical obstacles, language is a factor that greatly affects cultural stability. Religion is also a strong shaper of values. International companies sometimes have succeeded in introducing new products, technologies, and operating procedures to foreign countries with little adjustment. That's because some of these introductions have not run counter to deep-seated attitudes or because the host society is willing to accept foreign customs as a trade-off for other advantages. Some countries are relatively similar to one another, usually because they share many attributes that help mold their cultures, such as language, religion, geographical location, ethnicity, and level of economic development.

Diff: 3

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Synthesis

Objective: 2, 4

AACSB: Multicultural and diversity understanding
97) What is culture shock? How can an international employer help prevent culture shock and improve the success of expatriates?

Answer: Culture shock is frustration arising from experiencing a new culture and having to learn and cope with a vast array of new cultural cues and expectations. Businesspeople can learn to improve awareness and sensitivity and, by educating themselves, enhance the likelihood of succeeding abroad and avoiding culture shock. Gathering some basic research on another culture can be instructive as well as learning the language. There are country guidebooks based on people's experiences, including those by international managers. Employees can also consult with knowledgeable people at home and abroad, whether in a governmental or private capacity to learn about the culture and avoid adjustment problems.

Diff: 3

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Synthesis

Objective: 1, 4

AACSB: Multicultural and diversity understanding
98) What is the difference between a polycentric, ethnocentric, and geocentric approach to international management? What key factors should a firm consider before adopting one of these approaches?

Answer: In polycentric organizations, control is decentralized. In other words, business units in different countries have a significant degree of autonomy from the home office and act like local companies. Polycentrism may be, however, an overly cautious response to cultural variety. Ethnocentrism is the belief that one's own culture is superior to others. In international business, it describes a company or individual so taken with the belief that what worked at home should work abroad that environmental differences are ignored. Geocentrism refers to a situation in which a company bases its operations on an informed knowledge of home and host country needs, capabilities, and constraints. This is the preferred approach to business dealing with another culture because it increases introduction of innovations and decreases the likelihood of their failures. In deciding whether to make changes in either home- or host-country operations, a company should consider several factors: the importance of the proposed changes to every party involved, the cost and benefit to the company of each proposed change, the value of opinion leaders in implementing the changes, and timing.

Diff: 3

Learning Outcome: Explain how differences in culture affect the international business environment



Skill: Synthesis

Objective: 3, 4

AACSB: Multicultural and diversity understanding


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