CH 2

In a universalistic culture, the right way to treat people is based on a. Personal relationships. b. Principles of harmony within the group. c. Abstract principles such as rules of law and religion. d. Accepting the use of emotions.

Abstract principles such as rules of law and religion.

Expressions of anger, laughter, gesturing, and emotional outbursts are considered acceptable in a. Specific cultures. b. Diffuse cultures. c. Neutral cultures. d. Affective cultures.

Affective cultures.

International management may be influenced by which of the following levels of culture? a. National b. Business c. Organization d. All of the above

All of the above

US firms often outsource customer service to workers in a foreign country. To minimize difficulties, such workers receive cross-cultural training which may include: a. Training workers to reduce or eliminate an accent. b. Educating workers regarding US culture. c. Requiring workers to speak only English while on duty. d. All of the above

All of the above

Occupational cultures a. Are the norms, values, beliefs, and expected ways of behaving for people in the same occupational group. b. Are the set of important understandings that members of an organization share. c. Are norms, values, and beliefs that pertain to all aspects of doing business in a country. d. Are the dominant cultures within a country.

Are the norms, values, beliefs, and expected ways of behaving for people in the same occupational group.

Cultural paradoxes represent a. Cases where situations in reality seem to contradict cultural prescriptions. b. The assumption that all people within a culture behave, feel and act the same. c. The belief that a person's culture is superior. d. The belief that one's culture is inferior.

Cases where situations in reality seem to contradict cultural prescriptions.

The ability to interact effectively in multiple cultures is known as a. Trustworthiness. b. Cultural intelligence. c. Cultural relativism. d. None of the above

Cultural intelligence

All the following is true about culture EXCEPT a. Culture is the shared belief, norms, and values that guide everyday life of a group. b. Culture is passed from generation to generation through norms, values, and beliefs. c. Culture is always directly observable. d. Culture is very pervasive in societies.

Culture is always directly observable.

Seniority tends to dominate evaluation and promotion in a. Short term oriented cultures. b. Cultures high on uncertainty avoidance and low on individualism. c. Ethnocentric cultures. d. Doing rather than being cultures.

Cultures high on uncertainty avoidance and low on individualism.

Preference for involvement in multiple areas of personal and work life simultaneously are more likely in a. Specific cultures. b. Diffuse cultures. c. Neutral cultures. d. Affective cultures.

Diffuse cultures.

Some people believe that the norms, values, and beliefs of their own culture represent the only correct ways of dealing with the world. This is called a. High power distance. b. Stereotyping. c. Androgyny. d. Ethnocentrism.

Ethnocentrism.

High power distance countries have norms, values, and beliefs such as a. It is best to exercise power privately. b. Everyone has a place, some are high and some are low. c. A leader should develop his or her subordinates. d. Leaders are made and not born.

Everyone has a place, some are high and some are low

Countries high on uncertainty avoidance have norms, values, and beliefs such as a. Debates help you find the truth. b. Deviant people should be tolerated. c. Lack of rules in the workplace is good. d. Experts and authorities are usually correct.

Experts and authorities are usually correct.

According to research discussed in the text, which of the following may help managers become more culturally intelligent? a. Exposure to new cultural experiences in other countries b. Learning to trust each people from individualistic cultures c. Having a short term orientation d. All of the above are true

Exposure to new cultural experiences in other countries

An emphasis on leadership styles that appeal to duty and commitment to group goals are found primarily in countries with a. Low masculinity. b. Low uncertainty avoidance. c. Short term orientations. d. High collectivisim (low individualism).

High collectivism

Which of the following best describes U.S. culture with regard to individualism? a. Lower than many European nations b. Highest observed so far c. About the same as Japan d. Slightly above average

Highest observed so far

Which of the following cultural dimension represents the extent to which individuals are expected to be fair, altruistic, caring and generous? a. Performance orientation b. Individualism c. Humane orientation d. Power distance

Humane orientation

According to the text, which of the following two dimensions are not considered by Hofstede and is unique to the GLOBE cultural dimensions framework? a. Power distance and humane orientation b. Long-term orientation and uncertainty avoidance c. Masculinity and Individualism d. Humane orientation and performance orientation

Humane orientation and performance orientation

A cultural paradox is defined as: a. Group situations define cultural prescriptions. b. Individual situations define cultural prescriptions. c. Group situations contradict cultural prescriptions. d. Individual situations contradict cultural prescriptions.

Individual situations contradict cultural prescriptions.

On which of Hofstede's value dimensions does the U.S. rank highest? a. Masculinity b. Individualism c. Patriotism d. Power distance

Individualism

Aspects of the business culture in China include all of these EXCEPT: a. Business moves more slowly. b. One should respect Chinese business etiquette. c. It is important to praise individuals who excelled. d. The Chinese value harmony and order.

It is important to praise individuals who excelled.

Cultures with high power distance values probably have a. Participative leadership. b. Decentralized decision making. c. Large wage differences between management and workers. d. Managers selected by educational achievement.

Large wage differences between management and workers

In countries where it is believed that nature dominates people, a. Managers are less likely to be fatalistic. b. Managers emphasize planning and scheduling. c. Managers actively try to change situations. d. Managers believe that they must accept situations rather than changing them.

Managers believe that they must accept situations rather than changing them.

The range of feelings outwardly expressed in society refers to the cultural dimension of ________. a. Uncertainty avoidance b. Universalism vs. particularism c. Neutral vs. affective d. Diffuse vs. specific

Neutral vs. affective

Which of the following cultural dimensions is NOT included in Hofstede's model of national culture? a. Power distance b. Individualism c. Masculinity d. Neutrality

Neutrality

Which of the following statements is true regarding a future oriented society? a. Managers and workers do not necessarily believe that hard work can lead to future success. b. People believe they can control nature. c. Organizational change is considered necessary and beneficial. d. Individuals cannot influence the future.

Organizational change is considered necessary and beneficial.

All of the following are dimensions of Hofstede's Model of National Culture EXCEPT: a. Power avoidance. b. Uncertainty avoidance. c. Masculinity. d. Long-term orientation.

Power avoidance.

Organizational culture refers to the a. Set of important understandings that members of an organization share. b. Expected ways of behaving for people in the same occupational group. c. Values and beliefs pertaining to doing business with a specific company. d. None of the above

Set of important understandings that members of an organization share.

A new expatriate manager located in India reports to you that all of her subordinate local managers lack initiative and will only do what she tells them to do. You realize that most Indian managers expect superiors to tell them what to do. You advise her of this, but also caution the new manager to avoid: a. Rationalization. b. Stereotyping. c. Uncertainty avoidance. d. Ethnocentrism.

Stereotyping.

Cultural values a. Represent our understandings about what is true. b. Prescribe and proscribe behavior. c. Tell us what is good and beautiful and what are legitimate goals in life. d. Provide solutions to problems of adaptation to the environment.

Tell us what is good and beautiful and what are legitimate goals in life.

Cultural relativism represents a. The belief that all cultures are valid and ethical responses to the problems of living. b. The belief that some cultures are relatively better than others. c. The belief that your own culture is the best. d. The degree of similarity between business and national cultures.

The belief that all cultures are valid and ethical responses to the problems of living.

The correct definitions of the levels of culture include all of these EXCEPT: a. The national culture, dominant within the political boundaries of a nation-state. b. The business culture, unique to each business. c. The organizational culture, shared by members of an organization. d. The occupational culture, shared by those in the same occupation.

The business culture, unique to each business.

The achievement versus ascription dimension addresses a. The extent to which an individual's life is involved with work. b. The manner by which a society gives status. c. The way a culture deals with the past, present, and future. d. The belief people have in controlling their fate.

The manner by which a society gives status.

In countries that rank high on Hofstede's masculinity index a. People prefer a short working day to get home to their families. b. People feel more comfortable in small organizations. c. Theory X management is rejected strongly. d. Work is central to life and job recognition is very important.

Work is central to life and job recognition is very important.

Three key social institutions most likely to influence the business environment are: a. Economic system, level of industrialization and types of religion b. Economic system, types of religion and organizational culture c. Economic system, capitalist economy and organizational culture d. Economic system, power distance, and command economy

a. Economic system, level of industrialization and types of religion

These are very basic ways in which both domestic and multinational companies achieve and sustain competitive advantage: a. Generic strategies b. Differentiation strategies c. Competitive advantages d. Low-cost strategies

a. Generic strategies

The most common company-situation analysis is the: a. SWOT b. Comparison of product and pricing of competitors. c. TOPS d. DOGS

a. SWOT

Although multinationals can have considerable clout and power to influence the governments in foreign countries, they are under increasing pressure to: a. Be socially responsible b. Provide more jobs c. Reduce the amount of bribes d. Improve profits

a. be socially responsible

Ways to handle political risk include all of these EXCEPT: a. Bribing local officials b. Reliance on local partners c. Developing a network of government, business and public partners d. Political risk insurance

a. bribing local officials

Culture is a concept borrowed from: a. Cultural anthropology b. Cultural science c. religion d. None of these choices

a. cultural anthropology

A multidomestic strategy: a. Gives top priority to local responsiveness b. Is the most costly strategy c. Gives top priority to adapting to multiple countries and regions d. Gives top priority to generic strategies

a. gives top priority to local responsiveness

Porter's five forces model considers all of these EXCEPT: a. The cost of the cheapest competitor's product b. The threat of substitute products c. The degree of competition in the industry d. The bargaining power of buyers

a. the cost of the cheapest competitor's product

In a preindustrial society: a. Manufacturing or secondary dominates and shapes the economic environment b. Agriculture dominates and shapes the economic environment c. The service sector is emphasized d. None of these is correct

b. Agriculture dominates and shapes the economic environment

Countries high on individualism believe all of the following EXCEPT: a. People are responsible for themselves b. Group decision making is best c. People need not be emotionally dependent on organizations or groups d. Individual achievement is ideal

b. Group decision making is best

Training for conformity and obedience, with valuations based on compliance and trustworthiness characterize countries with a. Low power distance. b. High power distance. c. High individualism. d. Short term orientations.

b. High power distance.

The dominant culture in a society is the: a. Political culture b. The culture of those in the majority, usually c. Religious culture d. Subcultures within it

b. The culture of those in the majority, usually

Transition economies include all of the following EXCEPT: a. Hungary b. Venezuela c. Russia d. The Czech Republic

b. Venezuela

The main reason for concern about political risk is the potential for: a. A serious impact on government relations b. A serious impact on profitability c. A slight impact on government relations d. A slight impact on profitability

b. a serious impact on profitability

The increasingly popular strategy of going global by making uniform products for the world market can: a. Lead to greatly increased sales b. Backfire c. Increase downstream activities d. Lead to greatly reduced costs

b. backfire

The fact that Costa Ricans who live in a collectivist society prefer automatic tellers over human tellers is a: a. Cultural stereotype b. Cultural paradox c. Significant cultural finding d. None of these

b. cultural paradox

Entry-mode strategies include all of these EXCEPT: a. Indirect exporting b. Direct importing c. Passive exporting d. Using an export management company

b. direct importing

A competitor analysis should include all of these EXCEPT: a. Identifying generic strategies anticipated to be used by competitors b. Influencing the competitors' choice of strategies c. Identifying the basic strategic content of competitors d. Assessing the current positions of competitors

b. influencing the competitors' choice of strategies

"Emotional Intelligence" is defined as: a. Knowledge of emotional reactions b. The ability to manage one's emotions c. The ability to express a wide range of emotions d. None of these

b. the ability to manage one's emotions

Porter's five forces model considers all of these EXCEPT: a. The degree of competition in the industry b. The cost of the cheapest competitor's product c. The threat of substitute products d. The bargaining power of buyers

b. the cost of the cheapest competitor's product

Key success factors include all of these EXCEPT: a. R&D quality b. The educational background of the CEO c. A broad product line d. Superior physical facilities or skilled labor

b. the educational background of the CEO

A person who understands that the business world is changing and becoming more interdependent, and that business managers must think globally but act locally, has: a. Accomplished negotiating skills b. Emotional intelligence c. A global mindset d. A long range perspective

c. A global mindset

If multinationals expect to do business in mixed economies, they must: a. Subordinate their economic goals b. Respect social objectives c. All of these d. None of these

c. All of these

Globalization means that companies are more likely to conduct research and development: a. Overseas from their home countries b. In their home countries c. Anywhere d. In several places

c. Anywhere

Multinational managers are most concerned with the: a. Political culture b. Religious culture c. Business culture d. All of these

c. Business culture

One country that balances academic education with vocational skills is: a. The U.S. b. France c. Germany d. England

c. Germany

A culture which has dominant values of success, money, and material things is probably a. Low on power distance. b. Low on individualism. c. High on masculinity. d. High on long term orientation.

c. High on masculinity.

In countries with high social inequality, all of these are true EXCEPT: a. The level of inequality is typically taken for granted by people b. Multinational firms doing business in such countries are subject to negative publicity c. Many people have the ability to control and use important resources d. A few individuals have the ability to control and use important resources

c. Many people have the ability to control and use important resources

"The set of important understandings (often unstated) that members of a community share in common" is the definition of: a. Occupational culture b. Religious culture c. Organizational culture d. Business culture

c. Organizational culture

Religious norms are most important in: a. Postindustrial society b. Industrial society c. Preindustrial society d. A service economy

c. Preindustrial society

Regarding the GLOBE National Culture Framework, it is correct to say all of these EXCEPT: a. It was based on a massive research project b. Researchers conceptualized and developed nine cultural dimensions c. Regarding the GLOBE National Culture Framework, all of these are correct. d. It used the Hofstede model as its foundation

c. Regarding the GLOBE National Culture Framework, all of these are correct

This is the central, comprehensive, integrated, and externally oriented set of choices structuring how a company exploits its core competencies to achieve its objectives: a. Code of ethics b. Business plan c. Strategy d. None of these

c. Strategy

"When you understand your competitors and yourself, you will always win." The author of this quotation is: a. Bill Gates, Business @ the Speed of Thought b. Steven R. Covey, The 7 Habits of Highly Successful People c. Sun Tzu, The Art of War d. Donald Trump, The Apprentice

c. Sun Tzu, The Art of War

Regarding social inequality and attachment to work: a. Social inequality and attachment to work have no relationship to one another b. The greater the social inequality, the more attached to work a worker is c. The greater the social inequality, the less attached to work a worker is d. The greater the social inequality, the more workers admire their superiors

c. The greater the social inequality, the less attached to work a worker is

The impact of political decisions or events on the business climate in a country is called: a. Political strategy b. Domestic strategy c. Political risk d. Domestic feasibility

c. political risk

A differentiation strategy is one that: a. Produces products or services equal to those of competitors, but more efficiently b. Creates superior value for targeted customers and is difficult or too costly for competitors to copy c. Provides superior value to customers from sources like exceptional product quality, unique product features, rapid innovation or high quality service d. None of these

c. provides superior value to customers from sources like exceptional product quality, unique product features, rapid innovation or high quality service

A transnational strategy is one that: a. Gives two goals top priority b. Gives a single goal top priority c. Seeks location advantages and gaining economic efficiencies from operating worldwide d. Two of these

c. seeks location advantages and gaining economic efficiencies from operating worldwide

Multinational companies face this fundamental strategic dilemma when competing internationally: a. Customizing their organizations to accommodate regional differences b. The local-responsiveness solution c. The global-local dilemma d. The global integration dilemma

c. the global-local dilemma

This limits the strategic options available to multinational companies: a. None of these b. Laws of the country where the firm is to do business c. The resource base d. Available capital

c. the resource base

Discussing cultural paradoxes, the text indicates that although the US scores very high on individualism, it also has the highest percentage of a. unmotivated population. b. uncaring seniors. c. homeless people. d. charity giving in the world.

charity giving in the world.

People from ________ countries would probably feel most comfortable with an autocratic (theory X) task- directed style of leadership. a. High masculinity b. High power distance c. High uncertainty avoidance d. All of the above

d. All of the above

Regarding the location of global multinationals, it is correct to say that: a. They are located in Western cities b. They are located in China & South Korea c. They are located in Brazil & Mexico d. All of these are true

d. All of these are true

A multinational firm considering doing business in a country undergoing a market transition should expect: a. Access to skilled but relatively cheap labor b. A need to convert inefficient businesses into firms that can perform essential business functions c. A worker mindset that focuses on personal networks rather than skills and productivity d. All of these choices

d. All of these choices

Cultural rituals include: a. Baptisms b. Graduations c. Tricks played on a new worker d. All of these choices are cultural rituals

d. All of these choices are cultural rituals

The two dimensions of GLOBE which are not derived from Hofstede are: a. Performance orientation and uncertainty avoidance b. Future orientation and power distance c. Assertiveness and family collectivism d. Humane orientation and performance orientation

d. Humane orientation and performance orientation

Of the top 20 multinational corporations, the greatest number in a single industry are engaged in this industry: a. Retailing b. insurance c. Auto manufacture d. Petroleum

d. Petroleum

The degree to which people have privileged access to resources and positions within societies is called: a. Clout b. Professionalism c. A meritocracy d. Social inequality

d. Social inequality

Which of the 7d cultural dimensions represents the extent to which an individual's personal life is involved in his/her work relationships? a. Neutral versus affective b. Achievement versus ascription c. Time orientation d. Specific versus diffuse

d. Specific versus diffuse

Trends that are shaping the business environment of the future include all of these EXCEPT: a. Hypercompetition b. The importance of flexibility as opposed to size c. Blurring of industry boundaries d. The importance of remaining independent

d. The importance of remaining independent

Among the countries with the least social inequality are all of these EXCEPT: a. Denmark b. Belgium c. Japan d. United States

d. United States

A strategic approach to multinational management involves: a. Choosing or adapting a strategy b. Adopting maneuvers or activities that improve organizational performance c. Implementing chosen strategies d. all of the above

d. all of the above

Globalization drivers: a. Are conditions in an industry that favor a globally oriented transnational or international strategy b. Fall into four broad categories c. Include markets, costs, governments and competition d. All of these

d. all of these

The ability to interact effectively in multiple cultures is called: a. A global mindset b. Ethnocentrism c. Cultural sensitivity d. Cultural intelligence

d. cultural intelligence

The immediate environment where firms compete, which directly affects organizational strategy and design is the: a. Social context b. Social institutions c. Factor conditions d. National context

d. national context

Strategy formulation is: a. Based on competitive advantage b. Based on Porter's five forces model c. Only applicable to domestic businesses, not multinationals d. The process by which managers select the strategies to be used by their companies

d. the process by which managers select the strategies to be used by their companies

When hiring for managerial jobs in high power distance countries, preference is generally given to individuals a. having a high social class or a degree from an elite university. b. from all social classes. c. based on their qualifications and skills. d. All of the above

having a high social class or a degree from an elite university.