Exam 3: The Cultural Environment of International Business
________ belong(s) to the folk cultural makeup that we are aware of.
D
In a short essay, describe three guidelines that managers should follow to achieve cross-cultural success.
GUIDELINE 1: Acquire factual knowledge about the other culture, and try to speak the language. Successful managers acquire a base of knowledge about the values, attitudes, and lifestyles of the cultures that they encounter. Managers study the political and economic background of target countries-their history, current national affairs, and perceptions about other cultures. Such knowledge increases understanding about the partner's mind-set, organization, and objectives. Sincere interest in the target culture helps establish trust and respect. It helps lay the foundation for open and productive relationships. Even modest attempts to speak the local language are welcome. Superior language skills help ensure international business success. In the long run, managers who can converse in multiple languages are more likely to negotiate successfully and have positive business meetings.
GUIDELINE 2: Avoid cultural bias. Problems arise when managers simply assume that foreigners think and behave just like the folks back home. Such ethnocentric assumptions lead to poor business strategies in both planning and execution. Managers new to international business can find the behavior of a foreigner odd and perhaps improper. For example, it is easy to be offended when a foreigner does not appreciate our food, history, entertainment, or everyday traditions. In this way, cultural bias can be a significant barrier to successful interpersonal communication. Ethnocentric assumptions lead to poor business strategies in both planning and execution. Managers new to international business often find the behavior of a foreigner hard to explain. For example, it is easy to be offended when our foreign counterpart does not appreciate our food, history, sports, or entertainment or is otherwise inconsiderate. This situation may interfere with the manager's ability to interact effectively with the foreigner, even leading to communication breakdown. In this way, culture can be a significant barrier to successful cross-cultural communication.
GUIDELINE 3: Develop cross-cultural skills. Working effectively with counterparts from other cultures requires managers to make an investment in their professional development. Each culture has its own ways of conducting business and negotiations, and solving disputes. Managers are exposed to high levels of uncertainty. Concepts and relationships can be understood in a variety of ways. To be successful in international business, managers should strive for cross-cultural proficiency.
Nonverbal communication belongs to the deep cultural makeup that we are unaware of.
Phone Center (Scenario)
The Technix Computer Corporation recently finished construction of a customer service phone center in New Delhi, India. Phone center agents will be responsible for answering technical questions from customers around the globe. Technix has hired 55 local computer experts as phone agents, and a training session is underway. Technical specialists and call center specialists from the United States have flown to India to train the new Indian employees. Hank Patelli, a senior manager of a Technix phone center in Michigan, will oversee the New Delhi phone center for six months until a local manager is hired and trained to replace him.
-After the first training session, a number of the Michigan employees expressed frustration that the Indian employees lacked technical knowledge because none of them asked questions or offered answers. Which of the following would be the best way for Hank to handle the situation?
Firms with high power distance are most likely to be characterized by ________.
In societies with low uncertainty-avoidance, companies emphasize stable careers and produce many rules to regulate worker actions and minimize ambiguity.
Which of the following types of assumptions is the cause of most problems between business managers and foreign employees?
________ refers to the values, beliefs, customs, arts, and other products of human thought and work that characterize the people of a given society.
Cultural values and attitudes can be transmitted through a variety of sources including parents, teachers, friends, government leaders, movies, television, and the Internet.
________ refers to a distinctive tradition or institution strongly associated with a particular society.
Which of the following countries exhibit a high-context culture?
Subjective Dimensions of Culture (Scenario)
In the last two years, the sales of consumer electronics in China have risen by 9.4 percent. Moreover, the market is becoming increasingly competitive since a large number of Japanese, European, and American manufacturers are building factories to face the competition from low-cost Chinese manufacturers. Grande Co. is a U.S.-based consumer electronics manufacturer that has been negotiating with Chinese authorities for eight years to open a factory in the country. Since Grande has spent significant time and energy on negotiation in the past eight years, they should quit and set up a factory in a more responsive society.
-Which of the following, if TRUE, strengthens the conclusion of the above passage?
In deal-oriented cultures, managers focus on the task at hand and prefer getting down to business.
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