MKTG 335G Module 2
Match the forms of government (in the left column) with their corresponding features (in the right column). Instructions
Monarchy = Rule by one Aristocracy = Rule by few Democracy = Rule by many
Which of the following statements regarding cultures that score high on the Individualism/Collectivism Index is true?
Personal ambition and free will are valued and encouraged in these cultures.
_______ relate directly to basic human motivation and therefore have widespread economic and social implications.
Personal security and job mobility
The degree to which a culture will tolerate social inequality between superiors and subordinates is measured by the
Power Distance Index.
Which of the following statements about social institutions and their effect on a country's culture is true?
Religion has an enormous effect on a society's values.
Which of the following helps reduce disruptions to international trade?
Seeking resolutions to trade disputes
In what way is culture changing in most countries?
Smaller families are now favored.
Which of the following statements about Jared Diamond's research regarding the influence of geography on international marketing is true?
He claimed that new ideas moved more quickly from east to west than from north to south.
The ______ Index denotes an inclination toward behavior that advances a person's self-interest.
Individualism/Collectivism
Match the forms of capitalism (in the left column) with the business systems they typify (in the right column.) Instructions
Individualistic capitalism = Business systems are typified by adversarial relationships among labor, management, and government. Communitarian capitalism = Business systems are typified by cooperation among government, management, and labor.
Which of the following is true of the similar-but-different aspect of culture?
It can lead people to think that cultures have more in common than they actually do.
Which statement is true of culture?
It exists in the mind of each person.
_____ occurs when factory workers are given a small amount of cash to work more quickly on a given day.
Lubrication
Managers and professionals at different levels can exert power and have ownership of their roles and tasks through the process of
decentralized decision making.
Development of organizations and progression of business management eventually lead to
decentralized management decision making.
In U.S. businesses, the power and task of making decisions are handled by lower management, which means decisions are
decentralized.
The loss of various spoken languages is part of a general
decrease in cultural distinctiveness around the world.
Following the collapse of colonialism, _____ was seen as the best solution to all the criticisms of government.
democracy
International business ethics are complicated by the fact that
different cultures have different customs and beliefs.
When adhering to a custom is not mandatory but is allowed, that custom is a cultural
elective.
Customs that someone from a different culture desires to acknowledge and adhere to but that are not considered to be deal breakers are known as cultural
electives.
Cultures that score high on the Individualism/Collectivism Index tend to
embrace an "I" mentality.
Foreigners need to tread cautiously and avoid trying to take on customs that are reserved for locals only. These customs are known as cultural
exclusives
Customs that are considered by natives to be off limits to outsiders are known as cultural
exclusives.
___refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.
Sovereignty, Sovrinty, or sovereignty
True or false: After a country expropriates a foreign business, the business tends to become nationalized.
True
True or false: Hiring a local agency is legal, but if the agency uses part of its fee to pay bribes, it is using the fee in an illegal manner.
True
True or false: Marketers must be aware that their own cultures affect how they perceive other cultures.
True
True or false: One research study across 41 countries shows that the ethics of methods to influence managers are similar in all countries.
True
True or false: Participating in corruption by paying a bribe, even if other businesses are doing it, is problematic in terms of the ethics and success of a business.
True
True or false: Surprising and/or extreme political shifts in government policy deter foreign investment.
True
Which of the following statements regarding similarities among cultures is true?
Two cultures that speak the same language might interpret certain phrases or words in a very different way.
A government official demands that a construction company give him money before he will sign off on the continuation of a building project. He threatens to cancel the project and withdraw government funding. The government official is engaged in
extortion.
Which of the following statements regarding the change in family as a social institution is true?
Women are delaying marriage, especially in Asia.
When a person in power forces someone to make a payment for something that does not require any payment, the person is engaged in
extortion.
In the process of adaptation, business executives must
be conscious of local customs.
Ronald, a marketing executive at Renaissance Corp., offers a government official payment in exchange for tax deductions on advertisements on government property. Ronald is engaged in
bribery.
Decision making that is done by consensus is known as ______ decision making.
committee
According to Edward T. Hall, ______ is not only about words.
communication
The belief that _____ is necessary for efficiency, as well as improvement and regeneration, is a key concept in U.S. business practices.
competition
In contrast to managers and policymakers in other cultures, Western managers favor
competition.
Genrapay Inc., a multinational firm, has a branch of operations in a country. Due to rampant militant nationalism, the government seized Genrapay's assets without any form of reimbursement and proceeded to nationalize the firm. This scenario best exemplifies _____.
confiscation
The seizing of a company's assets without compensation is known as ___
confiscation
Mastersource Inc., an electronics manufacturer, introduces products that resemble what is already present in the market in order to reduce cultural resistance. Mastersource Inc. is engaging in cultural
congruence.
For those raised and educated in countries with Marxist ideals, profits may be considered a type of
corruption.
The Chinese practice of _____ refers to a connection between people and the universe to the energy that supports life and promotes balance and peace in a person's surroundings.
feng shui
What may happen to foreign investors when a host country's currency is devalued?
financial loss
When evaluating a situation, a Westerner is more likely to
focus on the central figures and not see much of the background.
Innovations most easily incorporated into a culture are those that
generate the most interest within society.
Research indicates that for top management and executive positions, international companies require
global experience.
David McClelland's worldwide study of goals and aspirations revealed that some cultures value a _____ more strongly than financial gains or job status.
good personal life
The primary reason given to explain the negative opinions about women in international business is that women _____.
have a hard time succeeding in the global workplace
Match the types of ethical principles (in the left column) with the questions they raise in (in the right column.) Relationship-oriented cultures are characterized by
high power distance.
Relationship-oriented cultures are characterized by
high power distance.
The anthropologist Edward T. Hall categorized cultures using a
high-context/low-context continuum.
The emergence of cola brands such as Mecca Cola and Arab Cola in the Middle East in the 2000s is a reflection of which of the following?
historic events affecting culture
Successful business people are aware that in some cultures, forming friendly relations is a critical first step that must be taken before any business negotiations can commence. In other words, establishing friendships is a cultural
imperative.
The customs that should be adhered to for a business relationship to be successful are known as cultural
imperatives.
A key philosophy of U.S. businesses is that _____ is a tool for social action.
independent enterprise
Which of the following is an important factor for Americans that other countries can see as a form of corruption?
individualism
Lester Thurow made a distinction between two types of capitalism: the British-American ______ form of capitalism and the ______ form of capitalism in Japan and Germany.
individualistic; communitarian
American business relationships, in comparison to business relationships in other cultures, are generally considered to be
informal and casual.
Mainland Inc., an American investment firm, encourages its employees to address their colleagues and seniors by their first names. This scenario describes the American characteristic of
informality.
Female executives in international business have workplace challenges due to gender biases in some countries. For this reason, some companies do not eagerly offer women _____.
international assignments
Research indicates that rewards such as promotion, increased pay, and longevity with a company go to executives with
international experience.
A characteristic of polychronic time is that
interruptions are routine and delays are expected.
One broad area in which a company faces challenges in normal business operations is
involvement in a country's political affairs.
Research has indicated that _____ tends to be lower in countries that are lower in individualism (IDV) and higher in power distance (PDI).
job mobility
Compared to businesspeople in low-context cultures, businesspeople in high-context cultures are ______.
less likely to use e-mail
Unlike individualistic societies, collective societies
link people strongly together through close-knit groups.
In most cultures, an infant's first experience with a social institution other than the home is most likely to be
religious.
Patterns of cultural behavior and interaction that are learned and repeated are known as
rituals.
Some ancient cultures that valued decadent lifestyles viewed work as an unwelcome component that interfered with the
search for pleasure or a good personal life.
A payment intended to influence an official to either ignore or commit an illegal activity is called
subornation.
A variation of bribery that includes significant amounts of money paid to an official in the hopes that the official will illegally help the payer is known as
subornation.
The countries of Vanadia and Bardemia have an agreement to trade various perishable products. Vanadia noticed a decline in the sale of its products in Bardemia. However, perishables from other countries were doing well. Marketers from Vanadia found that the problem stemmed from Bardemians' distrust of Vanadia due to previous military conflict. This scenario exemplifies _____.
targeted fear and animosity
In the context of thought processes, Asians
tend to see the entire picture rather than just the foreground when evaluating a situation.
Unlike egalitarian countries, countries that value and emphasize status and position place more importance on _____.
the status of business colleagues and clients
A responsible effort to learn from the cultural ways of others in the quest for a solution to a society's problems is known as
cultural borrowing.
Paying attention to the fine distinctions of culture so that it can be studied in an open-minded way, assessed, and admired is known as
cultural sensitivity.
Cultures that score high on the Power Distance Index
are often hierarchical.
Which of the following is true of language?
Around the world, the number of spoken languages has been dwindling.
Which of the following statements about the Western focus on bribery is true?
Corruption and bribery are no longer accepted as norms.
_____ decision making plays a prominent role in cultures that value collectivism.
Group
According to the _____ philosophy, people can influence their own future.
"master of destiny"
The concept, common among U.S. managers, that people have the power to influence their futures is known as the
"master of destiny" philosophy.
Which of the following types of governance competed for world dominance for most of the 20th century? (Check all that apply.)
-Fascism -Colonialism -Democracy -Communism
What are the four primary dimensions along which the cultures of nations differ, according to Geert Hofstede?
-Masculinity/Femininity Index -Power Distance Index -Individualism/Collectivism Index -Uncertainty Avoidance Index
In which of the following ways have the availability of birth control affected families throughout the world? (Check all that apply.)
-More women are waiting longer to get married. -Many women are waiting longer to have children. -Families have fewer children.
How has birth control changed social institutions and cultural values?
-People now have smaller families. -School children are now discussing topics such as abstinence.
Which of the following ethical principles can assist a marketer in determining what to do and how to act? (Check all that apply.)
-Rights of the parties -Utilitarian ethics -Justice or fairness
Which of the following is the best type of sovereign state to do business with? (Check all that apply.)
-The one that has a stable government -The one that is receptive to foreign investment
In which of the following ways do social institutions affect cultural values? (Check all that apply.)
-They teach each new generation how to act in an acceptable way. -They influence people to live in peace together.
Why were nationalized businesses historically rarely able to improve a country's economic development? (Check all that apply.)
-They were less efficient than private businesses. -They could not compete in the global marketplace.
Which of the following strategies must international marketers use in adapting to foreign countries?
-adjusting to various momentums -gaining insight into the country -assimilating themselves into their surroundings
Which of the following are characteristics of information-oriented cultures?
-bribery less common -monochronic time -low distance from English -competition
Which of the following are general business areas in which standard operations such as decision making and policy making present challenges? (Check all that apply.)
-consumer protection -basic human rights and fundamental freedoms -employment practices and policies -environmental protection
Which of the following factors can present problems with global Internet communications?
-culture -symbols, icons, and nonverbal impressions -machine translations
A sovereign state can do which of the following?
-determine its geographical borders -make deals with other sovereign nations
Which of the following are characteristics of relationship-oriented cultures?
-high distance from English -reduced transaction costs -high context -collectivism
Which of the following criteria need to be met by international marketers who must work with companies and people in foreign countries?
-humility -flexibility -open tolerance
People who come from cultures with high Power Distance Index scores often say that power and social status are derived from
-inheritance. -manipulation. -social roles.
A culture is most likely to accept something new when _____. (Select all that apply.)
-people have some reason to be quite interested in the innovation -the innovation will not disrupt existing beliefs and behaviors very much
A sovereign state has the power to
-regulate its national and international trade. -oppose direct foreign investment. -require its citizens to follow laws.
A sovereign state can
-reject applications for citizenship. -regulate who may enter and leave the state. -regulate trade with foreign entities.
Which of the following factors are typical of the polychronic time system?
-wait-and-see-what-develops attitude -looser time schedules -deeper involvement with individuals
Which of the following features are associated with cultures that score low on the Uncertainty Avoidance Index?
-willing to put up with people who deviate from normal behavior -willing to take risks -not much anxiety and stress
In "The Silent Language of Overseas Business," Edward T.Hall writes about the symbolic meanings, or _____ _____, of such things as time, space, and friendships, and how they differ from culture to culture.
1. Silent 2. Languages
Which of the following statements about cultural change is true?
A marketer assessing a society should remember that cultures are constantly changing.
Identify the issue that may affect the stability of a government.
An extremist party gaining power
Why is it important for foreign companies to understand the standpoints of the major political parties in the country they would like to do business with?
Because political parties in power shape trade policy.
_____ refers to attempts to give money to someone, uncoerced, to try to gain some sort of benefit.
Bribery
Which of the following best reflects the universal question among typical corporations in the United States?
Can it be done better?
_____ refers to energy that supports life and travels through everyone's body and the environment, including the inside and outside of houses and places of employment.
Ch'i
Identify a way in which feelings of nationalism make themselves evident.
Citizens purchase only items made within their country
Which of the following types of governance crumbled in the 1990s?
Communism
Which of the following is a cause of political risk in international marketing?
Contentious trade disputes
_________ is the sum of the values, rituals, symbols, beliefs, and thought processes that are learned and shared by a group of people, then transmitted from generation to generation.
Culture
True or false: Language should be at the bottom of the list when examining the viability of a company's website.
False
True or false: Nationalism refers to one country's hostility toward and fear of another specific country.
False
Match a country's degree of prominence of status and position or PDI (in the left column) with the correct description (in the right column.)
High-PDI = Subordinates are not likely to contradict bosses. Low-PDI = Subordinates often contradict bosses.
Match the following types of cultures as categorized by Edward T. Hall (in the left column) with the type of communication on which they depend (in the right column.)
High-context cultures = Depend heavily on nonverbal aspects of communication Low-context cultures = Depend more on explicit, verbally expressed communication
Randy works for a large manufacturing company. Though he is in management, his anxiety and stress levels are low. He likes to brainstorm with his colleagues and is open to exploring new ideas and taking risks. Which of the following is true of Randy?
His Uncertainty Avoidance Index score is low.
Which of the following statements about the origins of culture is true?
Historic events can affect technology, social institutions, culture, and behavior.
Which of the following is the geographical argument used by Jared Diamond to theorize why Euro-Asian cultures have sometimes dominated African and American cultures?
It was easier for ideas and information to travel over the Silk Road instead of crossing the Sahara or the Isthmus of Panama.
Cultures that score low on the Individualism/Collectivism Index tend to
subdue the individual and favor the group.
Match each dimension (in the left column) with its corresponding feature (in the right column). Instructions
The Individualism/Collective Index - It focuses on self-orientation. The Power Distance Index - It focuses on authority orientation. The Uncertainty Avoidance Index - It focuses on risk orientation. The Masculinity/Femininity Index - It focuses on assertiveness and achievement.
Which of the following statements regarding culture in international marketing is true?
The marketer's interaction with the local culture determines whether the marketing will fail or succeed.
Which of the following statements about rituals is true?
The most obvious rituals take place when people are experiencing turning points in their lives.
Which of the following is true of cultures that have low Power Distance Index scores?
They usually think people should be treated equally, and they say power comes from knowledge.
Which of the following best explains the effect of birth control techniques on men's lives in the past 50 years?
They gave men more time to spend with their children.
Which of the following statements about individuals from cultures with high Power Distance Index scores is true?
They tend to distrust people who are not part of their groups.
Match the types of ethical principles (in the left column) with the questions they raise in (in the right column.)
Utilitarian ethics = Whether an action optimizes the "common good" or benefits of all constituencies Rights of the parties = Whether an action respects the rights of the individuals involved Justice or fairness = Whether an action respects the canon of equality to all parties involved
Match the types of ethical principles (in the left column) with the questions they raise in (in the right column.) Instructions
Utilitarian ethics = Whether an action optimizes the "common good" or benefits of all constituencies Rights of the parties = Whether an action respects the rights of the individuals involved Justice or fairness = Whether an action respects the canon of equality to all parties involved
Which of the following statements regarding cultural borrowing is true?
When people are introduced to a belief or practice from another culture and they approve of it, they incorporate it into their own culture.
It should be the goal of every businessperson to
act in an ethically and socially responsible manner.
A high score on the Individualism/Collective Index indicates
a culture that encourages individual ambition.
Countries have been transitioning from agricultural to industrial to service economies. The result has been _______.
a drop in birthrates
When a country requires that any product marketed in the country must include a certain percentage of local material, it has
a local-content law.
Maintaining ethics and social responsibility in an international market can be challenging because
a manager must navigate all the cultural differences.
Which of the following is a fundamental concept of the American business system?
a never-ending quest for improvement
An outcome of posting a message on a public or business-to-business website is that
a reader might not interpret the message in the way the writer intended.
People from cultures with low Power Distance Index scores often say that _____ is a source of power.
achievement
________ is essential to international marketing.
adaptation
Having empathy regarding another person's way of thinking can result in better cultural understanding, which in turn leads to overcoming cultural barriers and a tendency toward
adaptation.
In the context of international marketing, culture
affects the way consumer prioritize the things they desire and the things they need.
Which of the following is a type of payment made to a third party hired to help a company that is unfamiliar with a country's laws and practices?
agent's fee
Unlike a collectivist society, an individualistic society is one in which people
are connected to others, but only in a loose way.
Individuals from cultures that have low Power Distance Index scores
are likely to hold egalitarian beliefs.
In the context of conditions for investment, some countries may mandate
local content to make up a portion of any product sold within a country.
Which of the following is a characteristic of an information-oriented culture?
low context
A type of bribery that includes a small fee or gift to a low-level bureaucrat in a country that does not ban such payments is known as
lubrication.
Unlike American companies, organizations in many other countries have not demonstrated a rapid acceptance of and adaptation to a ______ orientation.
marketing
Profits are directly tied to the success of a company's
marketing orientation.
In the United States, the hiring process and salary rewards are generally based on ______, which is in keeping with the concept that individuals are in control of their futures.
merit
Unlike other cultures where personal relationships are the fundamental core of a business, U.S. companies use ______ to determine who is hired and how an organization is structured.
merit
Western cultures such as North America, Germany, and Scandinavia tend to run on ______ time, or M-time, which is used in a linear way, and it is experienced as almost tangible, in that one saves time, wastes time, bides time, spends time, and loses time.
monochronic or monochromic
The time system specified by Edward T. Hall that treats time as something palpable in that it can be wasted or spent is known as
monochronic time.
In the United States, it is generally accepted that ______ influences business decisions.
objective analysis
U.S. managers tend to favor unbiased decision making and credible data to make business decisions. They make decisions based on
objective analysis.
The time system defined by Edward T. Hall that is more common in high-context cultures where human interactions are considered more important than meeting deadlines and keeping to schedules is known as _____ time, or P-time.
polychronic
According to Edward T. Hall, P-time, or polychronic time, permits _____.
relationships to grow
The ______ criterion refers to unconsciously judging others based on our personal experience and culture.
self-reference
Trey arranges for a business meeting with clients from Batang. His clients arrive 10 minutes late for the meeting, which Trey finds quite rude. However, arriving late for meetings is part of the business culture of Batang. In this scenario, Trey's perception is based on the _____ criterion.
self-reference
In the United States, a corporation is considered to be a(n) _____ social institution, one with rules, regulations, and an established presence.
separate and vital
A fundamental concept in American business culture is _____, which complements the ideas of merit-based promotion and power over one's future.
sharing in decision making
Interpersonal relationships are strongly affected by _____ such as family, religion, schools, the media, government, and corporations.
social institutions
The return on _____ is determined partly by the degree of brand equity and the ability to come up with socially responsible and sustainable ideas.
strategic philanthropy
Recently, companies have become more involved with helping local communities and sponsoring projects that are aligned with their knowledge areas. These companies are engaging in
strategic philanthropy.
Feelings of nationalism are often exhibited through _____.
strict control over foreign investment
To succeed in international business, businesspeople must count on the
strong support of the firm.
Cultures are always changing, and yet
they also resist change, which is one of their fundamental attributes.
An individual who scores low on the Individualism/Collectivism Index is most likely to
think in terms of "we" instead of "I."
What causes a country to exercise exchange control?
too much money leaving the country
The respect a businessperson commands in international business depends on
training and the backing of the firm.
To ensure adequate adaptation, business executives must be willing to _____.
understand that cultural differences may generate confusion and frustration
