Deck 3: The Cultural Environment of International Business

Question 1

Jordan is employed in an American investment firm and is currently working with some Japanese clients on a new project. He uses a lot of hand gestures during meetings, which his clients find very distracting and rude. This has also led to many misunderstandings between Jordan and his Japanese clients in the recent past. Which of the following best describes such a situation?

A) risk aversion
B) organizational anarchy
C) cross-cultural risk
D) acculturation

Answer 1

C

Question 2

Which of the following is TRUE with regard to culture?

A) It captures how the members of the society live.
B) It is absolute.
C) It does not define the collective behavior of each society.
D) It is inherited.

Answer 2

A

Question 3

Acculturation is defined as the process of ________.

A) segregating ethnic minorities by distinct groups
B) adjusting and adapting to a culture other than one's own
C) learning the behavioral patterns and rules of one's own society
D) forcing minority cultures to adopt the values of the dominant culture

Answer 3

B

Question 4

Socialization is defined as ________.

A) the process of segregating people into different racial groups in a society
B) the process of adjusting and adapting to a culture other than one's own
C) the process of learning the rules and behavioral patterns appropriate to one's given society
D) a situation or event in which a cultural misunderstanding puts some human value at stake

Question 5

________ belong(s) to the folk cultural makeup that we are aware of.

A) Fine arts
B) Methods of problem solving
C) Nonverbal communications
D) Diet

Question 6

________ are ways of behaving and conducting oneself in public and business situations.

A) Manners and customs
B) Creative expressions
C) Values and attitudes
D) Symbolic productions

Question 7

Businesses based in societies characterized by high uncertainty avoidance encourage managers to take risks and make quick decisions.

Question 8

With regard to the iceberg concept of culture, ________ is(are) the most deeply embedded.

A) conversational patterns
B) cooking
C) courtship practices
D) literature

Question 9

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.
Ashok, one of the Indian employees, asks Hank if the weekend training session could be rescheduled because it is a Hindu festival day. What will be the most likely outcome if Hank agrees to Ashok's request?

A) Instances of absenteeism will become more pervasive among Indian employees.
B) Hank will develop a relationship of trust and understanding with the Indian employees.
C) Hank's decision will create divisiveness between the American and Indian employees leading to irreparable damage.
D) Ashok will replace Hank as manager after six months when Hank returns to the United States.

Question 10

Culture refers to the inherited attitudinal traits of an individual.

Question 11

Religion belongs to the folk cultural makeup that we are aware of.

Question 12

Nonverbal communication belongs to the deep cultural makeup that we are unaware of.

Question 13

Which of the following situations illustrate a polychronic perspective?

A) When a North American talks to a Latin American, he or she may unconsciously back up to maintain personal space.
B) In Islamic countries close interaction between men and women is not encouraged in public places.
C) Latin Americans have a flexible perception of time and may not arrive exactly at the predetermined time for appointments.
D) People in young countries like Australia, Canada, and the United States are relatively focused on schedules, punctuality, and time as a resource.

Question 14

Cultural values and attitudes can be transmitted through a variety of sources including parents, teachers, friends, government leaders, movies, television, and the Internet.

Question 15

In a short essay, explain some of the obstacles that international firms often face when dealing with employees, customers, and business partners from other cultures.

Question 16

In a short essay, explain why international business managers should engage in critical incident analysis to avoid the self-reference criterion. Describe why an examination of values and attitudes toward culture is important in this analysis.

Question 17

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?

A) Remind the American employees that the Indians may be showing respect by remaining silent.
B) Order the Indian employees to interact more during the session.
C) Host a traditional American barbecue so the American and Indian employees can get acquainted.
D) Ignore the complaints of the American employees and continue the training sessions as planned.

Question 18

Culture is NOT ________.

A) about beliefs and values of society
B) relative
C) a collective phenomenon
D) inherited

Question 19

Values in a culture ________.

A) represent the symbolic, material, and creative productions unique to a society
B) are rigidly held attitudes, usually unfavorable and usually aimed at particular groups of people
C) represent a person's judgments about what is good or bad, acceptable or unacceptable, important or unimportant, and normal or abnormal
D) are similar to opinions but are often unconsciously held and may not have a rational basis

Question 20

________ refers to the values, beliefs, customs, arts, and other products of human thought and work that characterize the people of a given society.

A) Ethnicity
B) Heritage
C) Culture
D) Race

Question 21

The purpose of material productions in a society is to ________.

A) enable people to cope with their environments
B) help unite people
C) distinguish the dominant culture from minority cultures
D) segregate people based on race and ethnicity

Question 22

In which of the following countries would alcoholic drinks be prohibited?

A) Saudi Arabia
B) Mexico
C) Spain
D) Italy

Question 23

How is culture like an iceberg? In a short essay, explain the relationship between the iceberg theory and international business relationships.

Question 24

________ is the most common primary language in the world.

A) Chinese
B) Arabic
C) Spanish
D) English

Question 25

Which of the following religions has the largest number of adherents?

A) Islam
B) Christianity
C) Hinduism
D) Judaism

Question 26

Company logos, trademarks, national flags, and historical monuments are considered symbolic productions.

Question 27

________ are letters, figures, colors, or other characters that communicate a meaning.

A) Rituals
B) Symbols
C) Norms
D) Customs

Question 28

Restaurant Chain Internationalization (Scenario)
Harold Meyer is the vice president of a successful U.S. restaurant chain. He is getting ready to transfer to the Gulf Arab region to help establish the restaurant chain in Saudi Arabia. He is in the process of gathering information to learn about Saudi culture.
Which type of religious practices will Harold most likely have to study?

A) Christian
B) Jewish
C) Confucian
D) Islamic

Question 29

Prejudices in a culture ________.

A) represent the symbolic, material, and creative productions unique to a society
B) are rigidly held attitudes, usually unfavorable, and usually aimed at particular groups of people
C) guide the development of our attitudes and preferences
D) represent a person's judgment about what is important and what is not

Question 30

Restaurant Chain Internationalization (Scenario)
Harold Meyer is the vice president of a successful U.S. restaurant chain. He is getting ready to transfer to the Gulf Arab region to help establish the restaurant chain in Saudi Arabia. He is in the process of gathering information to learn about Saudi culture.
Harold decides to drop alcoholic drinks from the restaurant chain menu in Saudi Arabia. Which of the following might have led to his decision?

A) Alcoholic drinks are not allowed in Saudi Arabia.
B) Saudi consumers prefer local alcoholic drinks.
C) Imported alcoholic drinks are more expensive than local drinks.
D) Saudi consumers prefer European alcoholic drinks.

Question 31

Which of the following is NOT true about Islam?

A) Islam prohibits gambling.
B) Islam condemns charging interest for money loaned.
C) Islam discourages free trade.
D) Islam prohibits drinking alcoholic drinks.

Question 32

Which of the following is TRUE about language?

A) Language does not entail facial expressions and gestures.
B) National languages, dialects, and translation facilitate straightforward communication.
C) Language has both verbal and nonverbal characteristics.
D) Business jargons are common across cultures.

Question 33

In cultures with a monochronic view of time, people view time as linear, managers make commitments, set deadlines, and adhere to a strict schedule of meetings and activities.

Question 34

How do cultural perceptions of time relate to international business? In a short essay, provide examples of contrasting cultural time perceptions.

Question 35

English is the most common primary language in the world.

Question 36

Advertising themes often convey unfavorable and embarrassing interpretations. This is most likely because ________.

A) popular slogans used in international advertising do not use idiomatic expressions
B) advertising themes often lose their original meaning in translation or give the wrong impression
C) language is rarely subtle
D) colloquial expressions are more likely than not to puzzle native speakers

Question 37

In polychronic cultures, ________.

A) members are easily distracted and are inclined to do many tasks at once
B) people view time as linear and punctuality as a virtue
C) managers make commitments, set deadlines, and adhere to a strict schedule of meetings and activities
D) managers and investors are impatient and want quick returns

Question 38

________ is the most populous Muslim country in the world.

A) Saudi Arabia
B) Iran
C) Egypt
D) Indonesia

Question 39

The culture of which of the following countries has a close conversational distance?

A) Russia
B) Sweden
C) Brazil
D) United States

Question 40

An idiom ________.

A) refers to the objective analysis of a situation
B) refers to the perception about someone or something that may or may not be true
C) is a highly ambiguous rhetoric device used in high-context cultures
D) is an expression whose symbolic meaning is different from its literal meaning

Question 41

In the advanced economies, firms that engage in services such as lodging and retailing account for a much lesser share of FDI than firms that manufacture products.

Question 42

In a short essay, describe some of the subtleties of language. Provide examples that relate to international business situations.

Question 43

Discuss the economic and business implications of religion.

Question 44

Differences in language and national character have similar effects as trade barriers.

Question 45

Firms with high power distance are most likely to be characterized by ________.

A) concentrated power among executives and little autonomy for subordinates
B) an equal distribution of power among executives, managers, and lower-level employees
C) a minimal gap between the powerful and the weak
D) a highly flexible work environment

Question 46

Language has both verbal and nonverbal characteristics.

Question 47

Low-context cultures tend to ________.

A) emphasize nonverbal messages
B) conduct negotiations as efficiently as possible
C) view communication as a means to promote smooth, harmonious relationships
D) prefer an indirect and polite face-saving style of communication

Question 48

Titania is a country characterized by a high-context culture. This implies that ________.

A) the people of Titania tend to conduct negotiations as efficiently as possible
B) the people of Titania tend to use legalistic contracts to conclude agreements
C) business is primarily deal-oriented in Titania
D) personal relations and goodwill are valued in Titania

Question 49

Which of the following is TRUE about low-context cultures?

A) People belonging to low-context cultures do not prefer explicit communications.
B) Low-context cultures emphasize an indirect and polite face-saving style of communication.
C) Low-context cultures rely on elaborate verbal explanations, putting much emphasis on spoken words.
D) People belonging to low-context cultures view communication as a means to promote smooth, harmonious relationships.

Question 50

The Internet and other communications technologies imply greater likelihood of cross-cultural miscommunications and blunder.

Question 51

High power-distance countries are characterized by ________.

A) organizations that grant a high degree of autonomy to lower-level employees
B) a strong desire to minimize gaps between the powerful and the weak
C) a relative indifference toward social inequalities
D) a relative equality in terms of income and power

Question 52

Which of the following is characteristic of collectivist societies?

A) In collectivist societies, each person tends to focus on his or her own self-interest.
B) In collectivist societies, compromise and conformity help maintain group harmony.
C) In collectivist societies, ties among people are relatively loose.
D) In collectivist societies, those who compete best are rewarded financially.

Question 53

Which of the following countries is an example of a strongly collectivist society?

A) Ireland
B) Canada
C) Australia
D) China

Question 54

Communications, information, and transportation technologies have decreased people's ability to learn about and connect with unfamiliar cultures.

Question 55

Which of the following countries exhibit a high-context culture?

A) Japan
B) Germany
C) The United States of America
D) Switzerland

Question 56

Cultural differences necessitate adapting marketing activities to suit the specific needs of target markets.

Question 57

In China and Japan, a person's age is the most important determinant of employee promotion.

Question 58

Business jargon unique to a culture can impede communication.

Question 59

In companies with decentralized organizational structure, power is concentrated at the regional or corporate headquarters.

Question 60

In a short essay, explain how a "pay-for-performance system" and "lifetime employment" complicate company activities. Explain how these two cross-cultural differences reflect Hofstede's long-term versus short-term orientation.

Question 61

Using one's own culture as a standard for judging other cultures is known as ________.

A) anthropocentric orientation
B) ethnocentric orientation
C) geocentric orientation
D) polycentric orientation

Question 62

Which of the following managers portrays high uncertainty avoidance?

A) Greg manages the market development fund team for a leading computer manufacturing firm. He is entrepreneurial and makes decisions quickly under tough situations.
B) James is the business head of marketing in a leading automobile manufacturing company. He coaches his team members to become accustomed to risk and organizational change.
C) Henry is the managing editor at Paes publications. He emphasizes careful evaluation of all options and ensuring they are consistent with company policies, which often slows down the progress.
D) David manages the technical team at TR Solutions. He is open to different opinions from team members and is not threatened by differing opinions.

Question 63

Which of the following refers to the extent to which people can tolerate risk in their lives?

A) uncertainty avoidance
B) long-term versus short-term orientation
C) power distance
D) individualism

Question 64

Restaurant Chain Internationalization (Scenario)
Harold Meyer is the vice president of a successful U.S. restaurant chain. He is getting ready to transfer to the Gulf Arab region to help establish the restaurant chain in Saudi Arabia. He is in the process of gathering information to learn about Saudi culture.
Harold learned that organizations in Saudi Arabia emphasizes loyalty to the family and tribe and that ties among individuals are highly valued. Based on Harold's observation, Saudi Arabia is ________.

A) a collectivist culture
B) an individualistic culture
C) characterized by low power distance
D) a feminine culture

Question 65

Feminine cultures tend to emphasize ________.

A) interdependence among people
B) accumulation of wealth
C) ambition
D) competitiveness

Question 66

Which of the following situations is an example of geocentric orientation?

A) Marsha, CEO of QST Solutions, believes that top level executives at her company should be Americans to avoid any communication gaps.
B) The Gram Group of retail stores decided to open branches in China and focus on changing their policies to suit the Chinese population to maximize profits.
C) Derek, the VP of Banner Technologies, wants managers from the firm's India office to visit the U.S. branch to provide training to American officials visiting India.
D) Chill & Break Inc., an American global coffee company, is used to judging other cultures by the standards of its own culture.

Question 67

Polycentric orientation refers to ________.

A) a host-country mind-set in which the manager develops a strong affinity with the country in which she or he conducts business
B) the use of one's own culture as the standard for judging other cultures
C) a collectivist mind-set, which emphasizes conformity, duty, prescribed roles, and sacrifice for the greater good
D) the tendency to rely on elaborate verbal explanations, putting much emphasis on spoken words

Question 68

As part of opening manufacturing units abroad, a U.S. apparel firm decided to send its apparel production coordinator Chris to Bangladesh. Chris is distressed that people don't come to meetings on time and finds it disrespectful when his team members stand too close to him. Chris may trigger a cross-cultural risk by a(n) ________.

A) ethnocentric orientation
B) anthropocentric orientation
C) polycentric orientation
D) geocentric orientation

Question 69

In a deal-oriented culture, managers ________.

A) focus on the task at hand and prefer getting down to business
B) hold rigid attitudes, usually unfavorable and usually aimed at particular groups of people
C) emphasize affiliations with people
D) seek to build trust and rapport and get to know the other party in business interactions

Question 70

Japanese Supercenter (Scenario)
The Tag-Mart chain of discount superstores is nearing completion of its new supercenter in Tokyo. The Tokyo store is the first foreign store for the large U.S.-based company. Tag-Mart offers a large variety of products at virtually unbeatable prices. A group of Tag-Mart representatives has traveled to Tokyo to inspect the new store and hire a store manager. The top two contenders for the position are Hisako Aoki and Takematsu Sato. Aoki has 25 years of experience managing a local department store renowned for its customer service. Sato, born and raised in Japan, earned a college degree in the U.S. before working six years as a manager at a Texas Tag-Mart.
Which of the following best supports the selection of Sato over Aoki?

A) Sato is familiar with both Tag-Mart operations as well as the local customs in Japan.
B) Sato is no more skilled in employee training techniques than Aoki.
C) Sato is clearly more relationship-oriented than Aoki.
D) Sato is likely to discourage homogenization of cultures.

Question 71

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?

A) In China, companies belonging to deal-oriented cultures have been the most successful.
B) American companies best thrive in cultures that are deal-oriented.
C) For the Chinese, relationship is less important than business deals.
D) The management of Grande is characterized by a host country mind-set.

Question 72

In collectivist societies, competition for resources is the norm, and those who compete best are rewarded financially.

Question 73

A cultural metaphor is a generalization about a group of people that may or may not be factual.

Question 74

In societies with low uncertainty-avoidance, companies emphasize stable careers and produce many rules to regulate worker actions and minimize ambiguity.

Question 75

________ refers to a distinctive tradition or institution strongly associated with a particular society.

A) Cultural metaphor
B) Totem
C) Moiety
D) Cultural pluralism

Question 76

Business dealings in low-context cultures are characterized by ________.

A) a high degree of sensitivity to the context
B) a high degree of mutual respect
C) efficient negotiations
D) complex rituals

Question 77

In deal-oriented cultures, managers focus on the task at hand and prefer getting down to business.

Question 78

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 can be inferred from the above passage?

A) The Chinese culture is more likely than not to be deal-oriented.
B) The Chinese culture is more likely than not to be relationship-oriented.
C) The American culture is more likely than not to be relationship-oriented.
D) The American culture is less likely to take an impersonal approach to business.

Question 79

Japan and China are examples of low-context cultures.

Question 80

What are some of the criticisms of Hofstede's study? In a short essay, discuss the limitations of the study.