E-Man Chapter 5
86. The goal set by tight cultures is to: A. fit in. B. stand out. C. speak out. D. attract attention. E. question the validity of social norms.
A
99. ________ is the degree to which a society tolerates risk and change. A. Culture shock B. Cultural assimilation C. Imperialism D. Power distance E. Uncertainty avoidance
E
33. Howard is planning to expand his family business internationally, and is currently in the process of purchasing materials, manufacturing components, and locating business services around the world. Which of the following best describes his actions? A. Global sourcing B. Insourcing C. Licensing D. Franchising E. Outsourcing
A
39. When Iris Inc., a hand-bag manufacturer headquartered in the U.S., decided to invest in Japan, it tied up with a Japanese fashion house in order to pool resources, share risks, and operate the new business together. This is an example of ________. A. a joint venture B. a foreign subsidiary C. a greenfield venture D. diversification E. product development
A
44. Which of the following countries is a part of NAFTA? A. Canada B. United Kingdom C. Germany D. Spain E. France
A
49. ________ involves illegal practices to further one's business interests. A. Corruption B. Ethnocentrism C. Polycentrism D. Proxemics E. Ecological fallacy
A
53. Which of the following is a characteristic of a sweatshop? A. Poor working conditions B. High wages C. Low power distance D. High degree of foreign investment E. Strong ethics
A
55. ________ is a shared set of beliefs, values, and patterns of behavior common to a group of people. A. Culture B. Meme C. Folklore D. Conduct E. Moral
A
62. Which of the following is a trait of ethnocentrism? A. Showing no concern for the cultures of others B. Being eager to adopt the elements of foreign cultures C. Showing preference for foreign cultural values D. Encouraging ethnic minorities to adopt the traits of the dominant culture E. Failing to comply with the cultural values of one's own group
A
65. People with cultural intelligence: A. are flexible in dealing with cultural differences. B. are uncomfortable with cultural differences. C. view one's culture as superior to that of others. D. view one's culture as inferior to that of others. E. are eager to adopt the values of foreign cultures.
A
71. Which of the following is true with regard to high-context cultures? A. They rely on nonverbal and situational cues. B. The main part of the real message is conveyed by what is actually said. C. Body language and the physical setting are ignored in the communication process. D. They emphasize the importance of doing one thing at a time. E. They focus on using time to accomplish many different things at once.
A
76. In ________ cultures, time is used to accomplish many different things at once. A. polychronic B. ethnocentric C. low-context D. high-context E. monochronic
A
79. ________ is how people use space to communicate. A. Proxemics B. Kinesics C. Haptics D. Chronemics E. Vocalics
A
83. Which of the following is a focus of cultural tightness-looseness? A. The tolerance that exists for any deviations from norms B. The superiority of home country values C. The first interaction with a new culture and the anxieties associated with it D. The time when a new culture becomes the subject of one's criticism E. The ability to interpret the real message from what is being said
A
93. The ________ fallacy assumes that a generalized cultural value applies equally well to all members of the culture. A. ecological B. naturalist C. etymological D. definist E. existential
A
98. ________ had the highest individualism score of any country in Hofstede's data. A. United States B. United Kingdom C. Canada D. Australia E. China
A
35. The growth of export industries ________ the exporting country. A. reduces imports in B. leads to easy access to low-cost labor in C. creates local jobs in D. provides access to a larger pool of financial resources for E. leads to an excess supply of products in
C
32. Which of the following is a common reason for doing international business? A. Reducing imports B. Spreading assets among multiple countries C. Boosting domestic demand D. Establishing market monopoly E. Promoting ethnocentrism
B
37. In ________, the foreign firm buys the rights to use another's name and operating methods in its home country. A. insourcing B. franchising C. global sourcing D. exporting E. offshoring
B
42. ________ are taxes governments levy on imports from abroad. A. Excise duties B. Tariffs C. Pay-offs D. Corporate taxes E. Subsidies
B
47. A ________ is an MNE that operates worldwide on a borderless basis. A. franchise B. transnational corporation C. foreign subsidiary D. greenfield venture E. limited liability company
B
51. Which of the following is an example of child labor? A. A six-year old boy accompanying his mother to the carpet factory where she works B. A ten-year-old boy working in a chemicals factory C. A ten-year-old girl helping her younger brother with schoolwork D. A thirteen-year-old boy earning $10 for helping his father harvest strawberries from the family garden E. A nineteen-year-old girl working as a salesgirl in the local supermarket
B
58. ________ is the confusion and discomfort a person experiences when in an unfamiliar culture. A. Cultural appropriation B. Culture shock C. Cultural assimilation D. Cultural relativism E. Culture phobia
B
60. Stephanie Mann, an elderly German woman, decides to visit her friend living in Indonesia after many decades. Having never visited the country before, she feels confused, anxious, uncomfortable, and in need of information and advice during her stay. She is most likely experiencing ________. A. xenophobia B. culture shock C. cognitive dissonance D. acculturation E. boredom
B
64. ________ is the ability to accept and adapt to new cultures. A. Cultural imperialism B. Cultural intelligence C. Ethnocentrism D. Cultural myopia E. Cultural appropriation
B
67. The capacities to listen, observe, and learn are building blocks of cultural intelligence. These skills and competencies can be developed by better understanding what anthropologist Edward T. Hall calls the "________" languages of culture. A. graphic B. silent C. transformative D. spectacular E. vocal
B
72. Cultures where it is possible to begin making business deals only after social relationships are established are referred to as ________ cultures. A. ethnocentric B. high-context C. xenocentric D. polychronic E. popular
B
40. A(n) ________ is a local operation completely owned and controlled by a foreign firm. A. franchise B. sweatshop C. foreign subsidiary D. global strategic alliance E. export house
C
78. Thomas Wiegler, a German businessman, decided to meet one of his clients in the latter's office in Abu Dhabi. He was frustrated to find that after an initial warm greeting, his client continued to deal with the continuous stream of visitors flowing in and out of his office. Thomas concluded that he was not being given the dedicated attention he deserved. Thomas closely identifies with ________ cultural values. A. low-context B. monochronic C. high-context D. xenocentric E. polychronic
B
82. Which of the following describes cultural tightness-looseness? A. The ability to accept and adapt to new cultures B. The strength of social norms and degree of sanctioning within societies C. The confusion and discomfort a person experiences when in an unfamiliar culture D. The tendency to consider one's culture superior to others E. The tendency to rely on nonverbal and situational cues
B
88. Which of the following countries has a loose culture? A. South Korea B. Ukraine C. Japan D. Malaysia E. India
B
91. In a cross-cultural team, a member from the loose culture may show an inclination for which of the following? A. Looking toward formal authority for direction B. Criticizing others C. Being slow to volunteer D. Being slow to display emotion E. Always being on time
B
96. Which of the following is true about people in high-power-distance cultures? A. They do not accept differences in rank. B. They tend to be tolerant of power. C. They display a preference for letting people make their own decisions. D. They display egalitarian relationships. E. They have no respect for age.
B
45. Arguments on the negative side blame NAFTA for: A. lower productivity of U.S. manufacturers. B. lower cross-border trade. C. substantial job losses to Mexico. D. substantial job losses to the U.S. E. deterioration of the Mexican business environment.
C
100. In high-uncertainty-avoidance cultures, one would expect to find a preference for ________. A. openness to change B. innovation C. predictability D. openness to risk E. ambiguity
C
52. What are sweatshops? A. Local business operations that expand internationally through foreign direct investment B. Arbitrating firms that settle labor disputes C. Business operations that employ workers at low wages for long hours in poor working conditions D. Foreign firms that hire talented local personnel for training others in the host country E. Foreign firms that are engaged in rampant corruption and bribery to gain easy access to the local resource pool
C
54. Which of the following is an example of a sweatshop? A. Jason & Jason, an American law firm, opened its branch in Taiwan as part of its business expansion strategy. B. Ross Inc., a pharmaceuticals company, bought the rights to manufacture and sell a fertility drug in Greenland from Lena Pharmaceuticals. C. Nice & Patton, an electronic device manufacturing company, housed its employees in poor conditions and also overworked them. D. SayMore, a supermarket, sourced its canned fishes from Asia at a far lower price than most of its local competitors. E. Janus Infotech refused to increase the annual wages of its employees citing poor financial results in the last quarter.
C
63. Sam, an American national, was sent to India as part of a cultural exchange program in his university. On his arrival in India, he did not respond to his host who greeted him by folding his hands. He also declined the tea that was offered, emphasizing a cultural preference for coffee. Sam displayed ________. A. polycentrism B. idealism C. ethnocentrism D. feudalism E. collectivism
C
66. Someone high in cultural intelligence views cultural differences as ________. A. threats B. ethical dilemmas C. learning opportunities D. moral dilemmas E. barriers to learning
C
69. People who tend to say or write what they mean and mean what they say belong to ________ cultures. A. high-context B. popular C. low-context D. mass E. global
C
74. In ________ cultures, people tend to do one thing at a time. A. ethnocentric B. xenocentric C. monochronic D. popular E. high-context
C
77. Which of the following is true about members of polychronic cultures? A. They are known to be punctual without exception. B. They are generally reluctant to accomplish many different things at once. C. They are flexible toward time. D. They regard time as the primary focus of business. E. They prefer following a pre-determined sequence for accomplishing a given task at a given time.
C
85. Which of the following countries has a tight culture? A. Netherlands B. Hungary C. Malaysia D. Australia E. Ukraine
C
90. A mix of cultural tightness and looseness in a cross-cultural team may result in ________. A. synchronized performance B. consistent productivity C. soft or unstated conflict D. mitigation of conflict E. uniform and high inclination to volunteer
C
95. ________ is the degree to which a society accepts unequal distribution of power. A. Masculinity-femininity B. Proxemics C. Power distance D. Individualism-collectivism E. Power tactics
C
34. Juan, a wealthy industrialist, owns several coffee plantations in Brazil. Encouraged by the rising sales figures in the domestic market, Juan decides to sell his local brand of coffee in markets around the world. Which of the following terms is applicable to this business strategy? A. Importing B. Insourcing C. Franchising D. Exporting E. Licensing
D
38. Which of the following terms is used to describe local job creation that results from foreign direct investment? A. Restructuring B. Franchising C. Offshoring D. Insourcing E. Horizontal integration
D
43. The goal of most tariffs is to: A. improve present working conditions. B. protect transnational corporations from political risks. C. diversify existing jobs. D. protect local firms from foreign competition. E. create jobs for foreign workers.
D
48. Home-country criticisms of global firms include complaints about: A. interference with the local government. B. hiring the most talented local personnel at a high cost. C. failure to transfer advanced technologies. D. sending capital investments abroad. E. poor working conditions.
D
57. An American executive goes to Yemen to finalize a business deal. He hands over his documents to his Yemeni host with his left hand, which Muslims consider unclean. Moreover, he refuses to accept the dry fruits that he is offered, a behavior that deeply offends his host. As a result, the American loses the business deal to his Australian counterpart who was better versed in Yemeni ways. The lack of understanding of ________ is most likely to have resulted in the loss of business for the American executive. A. the business trends in Yemen B. Yemeni ethics C. the business laws in Yemen D. Yemeni culture E. the banking system in Yemeni
D
61. ________ is the tendency to consider one's culture superior to that of others. A. Regiocentrism B. Isolationism C. Geocentrism D. Ethnocentrism E. Polycentrism
D
68. ________ cultures emphasize communication via spoken or written words. A. High-context B. Popular C. High femininity D. Low-context E. Monochronic
D
73. Monochronic cultures focus on ________. A. gestures B. written language C. social context D. time E. space
D
80. Which of the following is true about proxemics? A. It studies the importance of time in the context of business. B. It emphasizes the importance of gestures in the communication process. C. It emphasizes verbal communication. D. It focuses on the use of space in communication. E. It focuses on the comparative analysis of the cultural traits of different groups.
D
87. In a loose culture: A. people guide their behavior according to expectations set by very clear social norms. B. people are expected to fit in. C. people are discouraged to speak out. D. social norms may be broad and ambiguous. E. conformity to social norms is uniform and absolute.
D
92. Which of the following is a cultural dimension identified by Geert Hofstede? A. Social orientation B. Cultural intelligence C. Social context D. Uncertainty avoidance E. Socialization
D
97. The extensive use of words like "I" and "me" in conversations and meetings reflect a cultural tendency toward ________. A. collectivism B. nationalism C. masculinity D. individualism E. socialism
D
20. Knowledge about foreign cultures is known as cultural intelligence.
False
31. Which of the following is an effect of globalization? A. Reduced cooperation among nations in the global economy B. Weakening of economic integration across countries C. Reduced interdependence among the components in the global economy D. Increasing importance of nation states E. A borderless world
E
36. When Zest Inc., a pharmaceuticals company, bought the rights of manufacturing and selling Bayman Pharma's vitamin supplement Vita Plus in Cuba, Zest engaged in ________. A. exporting B. global sourcing C. foreign direct investment D. insourcing E. licensing
E
41. Cases presented before the World Trade Organization for resolution are likely to involve disputes regarding ________. A. cultural appropriateness B. restructuring C. cultural distance D. ecological fallacy E. tariffs
E
46. Which of the following is true with regard to the European Union (EU)? A. There is an absence of common consensus between the member states of EU with regard to political integration. B. All the member states of the EU have adopted the Euro as the common currency. C. The common currency of the EU is a weak competitor of the U.S. dollar. D. The EU members are supposed to give one another most favored nation status. E. The EU is an economic and political alliance of major importance.
E
50. The Foreign Corrupt Practices Act (FCPA) makes it illegal for: A. countries who are not members of the EU to invest in the U.S. B. U.S. firms to invest overseas. C. foreign firms to offer nonmonetary gifts to U.S. officials. D. foreign firms to offer bribes to U.S. firms. E. U.S. firms and their representatives to engage in corrupt practices overseas.
E
56. Which of the following is true about culture? A. Culture is a set of legal codes. B. Culture occupies a position of peripheral importance in international business. C. Culture is not common to a group. D. Culture remains static over time. E. Cultural miscues can be costly in international business.
E
59. Culture shock is: A. a hatred of foreign cultures. B. an individual's failure to comply with the codes of his culture. C. an assumption that one's own culture is superior to that of others. D. an assumption that one's own culture is inferior to that of others. E. the discomfort a person experiences when in an unfamiliar culture.
E
70. In ________ cultures, what is actually said or written may convey only part, and sometimes a very small part, of the real message. A. low-context B. monochronic C. polychronic D. popular E. high-context
E
75. Most businesspeople in the United States schedule meetings with specific people and focus on a specific agenda for an allotted time. This is characteristic of a(n) ________ culture. A. polychronic B. low-context C. ethnocentric D. high-context E. monochronic
E
81. Ross is currently writing his doctoral thesis which is a comparative study on the use and treatment of physical space in communication between people across cultures. His thesis is a study on ________. A. haptics B. kinesics C. vocalics D. chronemics E. proxemics
E
84. In a ________ culture, people guide their behavior according to expectations set by very clear social norms. A. low-context B. loose C. monochronic D. polychronic E. tight
E
89. Which of the following is true about loose cultures? A. A high degree of conformity to social norms is present B. Tolerance for deviation is absent C. The goal is to fit in D. Social norms are narrow and unambiguous E. Non-criminal deviations from norms tend to be tolerated
E
94. Anna, a resident of Ukraine, decides to travel to the United States for a vacation. Her impression about Americans, who she thinks are strongly individualistic without exception, derives from Jacob. Jacob was once Anna's tenant, and the only American she has ever met. Anna is in the danger of falling prey to the ________. A. regression fallacy B. ethical dilemma C. Samaritan's dilemma D. existential fallacy E. ecological fallacy
E
21. In low-context cultures, what is actually said or written may convey only part, and sometimes a very small part, of the real message.
False
23. Members of monochronic cultures are more flexible toward time than those of polychronic cultures.
False
24. Members of polychronic cultures do not like if someone is late or brings an uninvited guest.
False
27. In a tight culture, deviations from norms tend to be tolerated.
False
28. The ecological fallacy refers to the belief that a cultural value such as individualism does not apply equally to all Americans.
False
6. Most manufacturers today shy away from using global sourcing owing to the growing concerns over issues related to quality.
False
8. Franchising refers to acquiring products from abroad and selling them in domestic markets.
False
1. The growing interdependence among elements of the global economy is known as diversification.
False
10. A foreign subsidiary is a foreign operation completely owned and controlled by a local firm.
False
11. A foreign subsidiary represents the lowest level of involvement in international operations.
False
14. NAFTA was formed by the United Kingdom, France, and Germany.
False
16. Extraction of excessive profits by global corporations is a potential host-country benefit.
False
18. Barbara shocked all her friends when she arrived at the party wearing a silk kimono, a traditional Japanese outfit. The reaction of her friends is an example of culture shock.
False
2. In World 3.0, local needs and priorities are largely ignored compared to the economic gains of global integration.
False
12. Tariffs are basically taxes that governments impose on imports.
True
13. The goal of most tariffs is to protect local firms from foreign competition.
True
15. Executives of transnationals view the entire world as their domain for acquiring resources.
True
17. Long hours of work and poor working conditions are prevalent in sweatshops.
True
19. Nigel is very proud of his culture and tends to view other cultures as potentially inferior to his own. This is an example of ethnocentrism.
True
22. Most communication in low-context cultures takes place via the written or spoken word.
True
25. Proxemics is how people use space to communicate.
True
26. Tight cultures are characterized by clear social norms.
True
29. People in high-power-distance cultures tend to be tolerant of power and are prone to follow orders.
True
3. Cultural awareness is an important characteristic of a truly global manager.
True
30. People in high-uncertainty-avoidance cultures prefer structure in their lives.
True
4. Sigma Inc. conducts for-profit transactions of goods and services across national boundaries. Sigma Inc. is an example of an international business.
True
5. A common first step into international business is global sourcing..
True
7. In exporting, local products are sold abroad to foreign customers.
True
9. China's foreign direct investment in the U.S. has led to the creation of many American jobs. This is an example of insourcing.
True