International Business CH 2

18) ________ peoples account for the largest percentage of global production. A) English-speaking B) Mandarin-speaking C) French-speaking D) Spanish-speaking

A)

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

A)

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

A)

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

A)

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

A)

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

Answer: FALSE

65) Cultures do not transcend national boundaries.

Answer: FALSE

4) When divergent cultures come in contact, ________ occurs. A) power distance B) culture shock C) cultural collision D) group membership

C)

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

D)

71) National origin is an acquired group membership

.Answer: FALSE

17) Which of the following languages has the most native speakers? A) English B) Mandarin C) Spanish D) Hindi

B)

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.

B)

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

B)

22) Which of the following is an example of an acquired group membership? A) national origin B) religion C) gender D) race

B)

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

B)

31) Safe work environments motivate ________; challenges motivate ________. A) individualists; collectivists B) collectivists; individualists C) non-fatalists; fatalists D) materialists; non-materialists

B)

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

B)

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

C)

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

C)

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

C)

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

C)

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

C)

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

C)

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

D)

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

D)

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

D)

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

D)

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

D)

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

D)

23) The more closed a society is, the more important ________ group membership is. A) acquired B) age-based C) education D) ascribed

D)

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

D)

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

D)

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

D)

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

D)

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

D)

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

D)

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

D)

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

D)

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.

D)

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

FALSE

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.A

nswer: FALSE

78) Where future orientation is high, people are more willing to delay gratification by investing.A

nswer: TRUE

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.

A)

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

A)

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

A)

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

A)

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

A)

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

A)

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

A)

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

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

Answer: FALSE

79) A culture in which people prefer to handle tasks sequentially is a polychronic culture.

Answer: FALSE

80) A culture with a preference for a problem-solving style that first settles principles is a pragmatic culture.

Answer: FALSE

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

86) A widely successful strategy for introducing change into a foreign country is to introduce many changes simultaneously.

Answer: FALSE

87) According to experts, stakeholder participation in decision making is effective only in countries with an educated population.

Answer: FALSE

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

Answer: TRUE

62) Most cultural variables are universal.

Answer: TRUE

64) Similarity among people is both a cause and effect of national boundaries.

Answer: TRUE

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

Answer: TRUE

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

Answer: TRUE

68) Cultural change may come by choice or imposition.

Answer: TRUE

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

Answer: TRUE

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

Answer: TRUE

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

Answer: TRUE

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

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

Answer: TRUE

77) In societies where trust is high, there tends to be a lower cost of doing business.

Answer: TRUE

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

Answer: TRUE

84) A potential problem of polycentrism is failure to introduce innovative superiority.

Answer: TRUE

85) Ethnocentric firms typically use the same business practices in all cultures and markets.

Answer: TRUE

88) Change agents intentionally cause or accelerate social and cultural change.

Answer: TRUE

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

Answer: TRUE

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

B)

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

B)

16) Cultural change imposed by an alien culture is called ________. A) multicultural ethnocentrism B) cultural imperialism C) collectivism D) high-context

B)

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

B)

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

B)

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

B)

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

B)

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.

B)

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

B)

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

C)

14) Contact among countries brings about cultural change, which is a process called ________. A) cultural collision B) cultural imperialism C) cultural diffusion D) polycentrism

C)

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.

C)

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

C)

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

C)

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

C)

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.

C)