Deck 5: Culture, Management Style, and Business Systems

Question 1

Adaptation requires business executives to forsake their ways and change to local customs.

Answer 1

False
Explanation: Adaptation does not require business executives to forsake their ways and change to local customs; rather, executives must be aware of local customs and be willing to accommodate those differences that can cause misunderstandings.

Question 2

The treatment local women receive in their own cultures is a clear indicator of how a foreign businesswoman will be treated.

Answer 2

False
Explanation: Despite the substantial prejudices toward women in foreign countries, evidence suggests that prejudice toward foreign women executives may be exaggerated and that the treatment local women receive in their own cultures is not necessarily an indicator of how a foreign businesswoman is treated.

Question 3

We are less likely to evaluate a person's behavior in terms of what is familiar to us because we use our self-reference criterion (SRC).

Answer 3

False
Explanation: The self-reference criterion (SRC) is especially operative in business customs. If we do not understand our foreign counterpart's customs, we are more likely to evaluate that person's behavior in terms of what is familiar to us.

Question 4

The majority of business customs fit into the cultural elective category.

Question 5

Businesspeople in low-context cultures use email more often than those in high-context cultures.

Question 6

In the committee decision setup, every committee member must be convinced of the merits of the proposition or product in question.

Question 7

Cultural electives are business customs in which an outsider must not participate.

Question 8

The three typical decision-making patterns are top-level management decisions, decentralized decisions, and committee or group decisions.

Question 9

Most high-context cultures operate on monochronic time.

Question 10

High-Power Distance Index countries are more egalitarian than low-Power Distance Index countries.

Question 11

In the United States, bribery is increasingly being considered a way of life because it is necessary for business.

Question 12

Cultural imperatives are business customs that are generally similar across cultures.

Question 13

Workers in countries higher in individualism show more commitment than workers in countries with lower individualism and higher power distance.

Question 14

The notion that competition is crucial for efficiency, improvement, and regeneration is fundamental to Western management practices.

Question 15

The idea of wide sharing in decision making is consistent with the views that one controls one's own destiny.

Question 16

High-context cultures place great importance on the verbal aspects of communication.

Question 17

For most U.S. managers, judgment and intuition are the only basis for making decisions.

Question 18

Polychronic time is characterized by "a great involvement with people."

Question 19

As businesses grow and professional management develops, there is a shift toward centralized management decision making.

Question 20

The strength of a firm's backing is the key to success for both women and men in international business.

Question 21

The distinction between bribery and extortion depends on whether the activity resulted from an offer or from a demand for payment.

Question 22

Which of the following would most likely be characterized as being an imperative business custom in many cultures?

A) Establishing friendships.
B) Speaking the local language.
C) Understanding the native religions.
D) Drinking the local drinks.
E) Having knowledge of the local sport.

Question 23

Business customs in which an outsider must not participate are called _____.

A) imperatives
B) electives
C) exclusives
D) absolutes
E) statutes

Question 24

Which of the following is a criterion for adaptation when dealing with individuals, firms, or authorities in foreign countries?

A) Profit motive
B) Cultural apathy
C) Hypersensitivity
D) Flexibility
E) Time-consciousness

Question 25

_____ are the business customs and expectations that must be met and conformed to or avoided if relationships are to be successful.

A) Cultural exclusives
B) Business electives
C) Global protocols
D) Business axioms
E) Cultural imperatives

Question 26

Utilitarian ethics is the ethical principle that focuses on the optimization of the "common good."

Question 27

Which of the following is true of adaptation in international marketing?

A) Willingness to adapt is a crucial attitude in international marketing.
B) Adaptation requires business executives to forsake their ways and change to local customs.
C) Mere tolerance of alien cultures is sufficient in international marketing.
D) Open tolerance is considered to be an unnecessary concession to foreign cultures.
E) Empathy for foreign cultures may lead to cultural discord.

Question 28

Business customs to which adaptation is helpful but not necessary are called _____.

A) imperatives
B) electives
C) exclusives
D) non-traditional
E) standardized

Question 29

The most managerially useful aspect of the synthesis of cultural differences is that it allows us to make predictions about unfamiliar cultures.

Question 30

A distinguishing characteristic of the type of capitalism common in Chinese culture is the emphasis on guanxi as the coordinating principle among firms.

Question 31

It is not possible to obtain measures of linguistic distance for every country and every person.

Question 32

Business customs can be grouped into:

A) rigid, flexible, and negotiables.
B) internals, externals, and consensual customs.
C) imperatives, electives, and exclusives.
D) national, foreign, and international.
E) unilateral, bilateral, and multilateral.

Question 33

Subornation payments accompany requests for a person to do a job more rapidly or more efficiently.

Question 34

Betty Roberts became an embarrassment to her company when she joked about the ruling monarchy in England in front of a group of visiting English businesspeople. She should have known that political ridicule by a foreigner is rarely accepted. Ms. Roberts has violated what is known as a cultural _____.

A) imperative
B) elective
C) exclusive
D) landmark
E) standard

Question 35

Chinese cultures are high on Power Distance Index and low on Individualism/Collective Index.

Question 36

Business customs that must be recognized and accommodated are called _____.

A) imperatives
B) electives
C) exclusives
D) obligations
E) constraints

Question 37

Lubrication is a request for officials to turn their heads, to not do their jobs, or to break the law.

Question 38

High-context cultures score high on power distance and low on individualism.

Question 39

In the less individualistic cultures, labor and management are generally hostile.

Question 40

Simon Peters, a senior manager at Celise Export Logistics, goes for a meeting in France to negotiate a deal with the company's French partners. He dresses casually in a t-shirt and jeans. His French counterparts call off the meeting and accuse him of taking a casual attitude toward negotiations. In the context of this scenario, dressing formally during business meetings is probably a cultural _____ for the French.

A) imperative
B) elective
C) exclusive
D) oddity
E) benchmark

Question 41

A characteristic of committee decision making is that it is:

A) found in small businesses.
B) done to please important family members.
C) based on rank and hierarchy.
D) rarely employed in Asian countries.
E) by group or consensus.

Question 42

Which of the following views is consistent with normative U.S. cultural concepts?

A) Collective good outweighs the individual gain.
B) The decision-making power lies in the hands of the highest authority.
C) Personal relationships are more important in daily life than work and the company.
D) Independent enterprise is an instrument for social action.
E) A broader set of stakeholders is crucial to the company.

Question 43

Which of the following could be the least acceptable behavior in a business setting, especially in a cross-cultural scenario?

A) Correcting someone in public.
B) Staying away from greeting another man with a kiss (a custom in some countries).
C) Refusing to eat foods that disagree with your palate.
D) Refusing to drink alcoholic beverages.
E) Opting not to dance along with the crowd.

Question 44

Which philosophy of U.S. management recognizes that people influence the future to a large extent and that they control their own fates?

A) Independent enterprise as the instrument of social action.
B) Wide sharing in decision making.
C) "Master of destiny" viewpoint.
D) Never-ending quest for improvement.
E) Competition produces efficiency.

Question 45

Companies in _____ countries have a strong paternalistic orientation, and assume that individuals will work for one company for the majority of their lives.

A) more hierarchical
B) more egalitarian
C) high Power Distance Index
D) low Uncertainty Avoidance Index
E) low in individualism

Question 46

There is a very strong belief in the United States that business decisions must be supported and based on accurate and relevant information. Which of the following best describes this approach?

A) "Master of destiny" viewpoint
B) Independent enterprise as the instrument of social action
C) Objective analysis
D) Wide sharing in decision making
E) Never-ending quest for improvement

Question 47

According to the high-context/low-context continuum identified by Edward T. Hall, communication in a low-context culture depends on:

A) the context.
B) who says it.
C) when it is said.
D) how it is said.
E) the verbal expression.

Question 48

Which of the following is consistent with the American view of the independent enterprise?

A) A corporation should fall under the control of the state government.
B) A corporation is an entity that has rules and continuity of existence.
C) The largest proportion of a corporation's profits must go to social causes.
D) A company should be equally owned by all employees and stakeholders.
E) Corporations do not take precedence over family and social relationships.

Question 49

In _____ decision making, participation by middle management tends to be deemphasized.

A) democratic
B) decentralized
C) decentralized committee
D) non-hierarchical
E) top-level management

Question 50

Which of the following aspects of communication is more important in a low-context culture?

A) Explicit communication
B) Nonverbal communication
C) Contextual communication
D) Face-to-face communication
E) Implicit communication

Question 51

Which of the following forms of business decision making is predominant in most Asian countries?

A) Independent
B) Contractual
C) Democratic
D) Group
E) Dictatorial

Question 52

Fredrick Keeble, an American manager, took his Swiss client out for a traditional American dinner. The client did not seem to enjoy the food and left most of it untouched. After dinner, he asked his client if he had enjoyed the dinner. Which of the following responses would indicate that the client comes from a low-context culture?

A) No, I did not like the food.
B) Yes, but it was a little too oily.
C) No, I thought the food was good.
D) Yes, it was lovely, thanks.
E) Yes, unfortunately I was not very hungry.

Question 53

Research has shown that commitment of workers to their companies tended to be higher in countries:

A) higher in individualism and lower in power distance.
B) higher in collectivism and lower in individualism.
C) lower in individualism and higher in power distance.
D) higher in power distance and higher in individualism.
E) higher in collectivism and higher in power distance.

Question 54

The recognition of U.S. corporations as entities that have rules and continuity of existence and are separate, vital social institutions can result in:

A) feelings of obligation among employees to serve the company.
B) scientific decision making by employees and managers.
C) superstitious beliefs playing a role in decision making.
D) decision making being limited to upper management.
E) a collectivist identity among employees.

Question 55

In the context of management objectives and aspirations, which of the following is true of an employee's personal life?

A) Max Weber discovered that some cultures emphasized profit over personal life.
B) The Japanese work ethic derives from the belief of feng shui.
C) Ancient Greek thought considered work to be a desirable factor in one's life.
D) To the Japanese, personal life is company life.
E) McClelland opined that the standard of living enjoyed in the United States originated from the hard-working Protestant ethic.

Question 56

As businesses grow and professional management develops, there is a shift toward:

A) centralized group decision making.
B) decentralized management decision making.
C) centralized decision making.
D) top-level management decision making.
E) experimental decision making.

Question 57

According to Max Weber, at least part of the standard of living in the United States today can be attributed to the:

A) hard-working Protestant ethic.
B) artificially low price of gasoline.
C) almost complete penetration of the Internet.
D) status equalization by the business class.
E) slave-labor that formed the basis for early industry.

Question 58

In _____ decision making, title or position generally takes precedence over the individual holding the job.

A) committee
B) decentralized
C) top-level management
D) consensus
E) dictatorial

Question 59

Adam Smith in his Wealth of Nations stated, "By pursuing his own interest he frequently promotes that of the society more effectually than when he really intended to promote it." What behavior does this notion attempt to justify?

A) Collectivism
B) Loyalty
C) Greed
D) Competitiveness
E) Cooperation

Question 60

The notion that _____ is crucial for efficiency, improvement, and regeneration is fundamental to Western management practices.

A) greed
B) collectivism
C) centralization
D) competition
E) hierarchy

Question 61

Which of the following is true of the business community's view about payoffs?

A) The decision to pay a bribe is ethical in the business world.
B) During the 1970s, the United States had strict laws against paying bribes in foreign countries.
C) The Securities and Exchange Commissions requires all types of corporations to report their expenditures.
D) Payoffs are restricted to the multinational companies headquartered in the United States.
E) Many global competitors perceive payoffs as a necessary means to accomplish business goals.

Question 62

Which aspect of Japanese culture, predicted by many to favor bribery, makes Japan's success in reducing corruption more remarkable?

A) Relationship-orientation
B) Mechanistic inclination
C) Patriarchal nature
D) Ritualistic nature
E) Consumerism

Question 63

Which organization conducts an international survey of businesspeople, political analysts, and the general public on corruption and compiles the Corruption Perception Index (CPI)?

A) Organization of American States (OAS).
B) United Nations Convention against Corruption (UNCAC).
C) Organization for Economic Cooperation and Development (OECD).
D) Transparency International (TI).
E) World Trade Organization (WTO).

Question 64

When compared to people operating on P-time, people operating on M-time:

A) follow looser time schedules.
B) are more deeply involved with individuals.
C) have a wait-and-see-what develops attitude.
D) are more likely to blame external factors for their lateness.
E) tend to concentrate on one thing at a time.

Question 65

Which of the following is true of the effect of differences in culture in business negotiations?

A) The basic elements of business negotiations differ from country to country.
B) The risk of misunderstanding increases when negotiating with someone from a different culture.
C) The possibility of misinterpretation is decreased when one uses one's self-reference criterion.
D) A standard rule in negotiating is to know your counterpart first.
E) The negotiator's cultural background need not have a bearing on the business talks.

Question 66

France is higher on Hofstede's Power Distance Index (PDI) than the United States and formality still reigns in France. Which of the following American business practices would be most unacceptable to the French?

A) Using threats during business meetings.
B) Interacting with members lower in rank.
C) Showing impatience at business negotiations.
D) Using first names in business encounters.
E) Conducting business over dinner or lunch.

Question 67

Which of the following best explains the low percentage of women chosen for international assignments in the United States?

A) The traditional role of women as homemakers and caregivers does not allow for international assignments.
B) Women managers from the United States have a poorer track record when compared to their male counterparts.
C) Prejudice faced by American women executives in foreign, male-dominated societies is exaggerated.
D) There is a wide spread belief that roles of women in male-dominated societies precludes women from being successful in these societies.
E) Expenses involved in sending a women executive abroad are far higher than the expenses in sending a man abroad.

Question 68

People in Brazil describe themselves as late arrivers, allow greater flexibility in defining early and late, are less concerned about being late, and are more likely to blame external factors for their lateness. Which system of time do the Brazilian people most likely operate on?

A) Polychronic time
B) Bimodal time
C) Dual time
D) Monochronic time
E) Sequence time

Question 69

A firm whose marketing orientation is based on the belief that consumers and businesses alike will not buy enough without prodding is _____ oriented.

A) distribution
B) process
C) production
D) product
E) selling

Question 70

In the context of business ethics, many people in sub-Saharan Africa view Western _____ as a kind of exploitation that prevents treatment of AIDS for millions.

A) missionaries and religious movements
B) individualism
C) R-rated American movies
D) intellectual property laws
E) currency speculators

Question 71

_____ is more dominant in high-context cultures, where the completion of a human transaction is emphasized more than holding to schedules.

A) Polychronic time
B) Bimodal time
C) Dual time
D) Monochronic time
E) Sequence time

Question 72

Which of the following is the best means of solving the problem of language on the Internet?

A) Using minimal language in websites and using graphics and diagrams to convey messages.
B) Using language translation software to translate communication in all languages.
C) Having country-specific websites so that everyone can communicate in their own language.
D) Using foreign language blocking software to screen international communications.
E) Training employees to communicate in all languages used by foreign customers.

Question 73

In the context of business ethics, which of the following factors kept the American economy afloat at the turn of the century?

A) Missionaries and religious movements
B) Cultural homogenization
C) Rampant consumerism
D) Intellectual property laws
E) Currency speculators

Question 74

_____ is probably the most common mistake of North Americans attempting to trade in the Middle East.

A) Drinking
B) Informality
C) Impatience
D) Excessive negotiation
E) Casual dressing

Question 75

Kan is a customer relations manager with a leading multinational firm. He has managed various operations and deals with numerous domestic and international clients everyday. Despite his hectic schedule, Kan never cuts a meeting short with anyone and frequently postpones subsequent meetings in order to devote ample time to each of his clients. Which of the following countries is he most probably from?

A) Japan
B) Switzerland
C) The United States
D) Germany
E) France

Question 76

Which of the following countries is more likely to exhibit higher levels of bribery?

A) Individualistic cultures.
B) Countries with a strong dependence on international trade.
C) Nations with a communist past.
D) High-income nations.
E) Countries with low-power distance.

Question 77

Academic studies of the causes and consequences of bribery, conducted by Transparency International (TI), indicate corruption is greater in:

A) high income nations.
B) democratic rather than communist countries.
C) countries with high individualism.
D) countries with low Power Distance Index.
E) collectivistic nations.

Question 78

Western cultures like most North Americans, Swiss, Germans, and Scandinavians tend to concentrate on one thing at a time and are typified by _____ time.

A) polychronic
B) bimodal
C) dual
D) monochronic
E) sequence

Question 79

Which of the following is true of P-time and M-time?

A) The American desire to get down to business is a manifestation of a P-time culture.
B) The M-time system gives rise to looser time schedules.
C) M-time is characterized by the simultaneous occurrence of many things.
D) As global markets expand, more businesspeople from P-time cultures are adapting to M-time.
E) Interruptions are routine for M-time businesspeople.

Question 80

Which of the following is true of the findings of Transparency International's Corruption Perception Index?

A) Lower levels of bribery have been found in nations with a communist past.
B) Higher levels of bribery have been found in low-power distance nations.
C) Higher levels of bribery have been found in low-income nations.
D) Lower levels of bribery have been found in collectivistic cultures.
E) Lower levels of bribery have been found in low-income nations.