BUS 303 Final
Which of the following actions would NOT be illegal under US law?
"Facilitating/Grease payments" are OK. *Regarding payments to foreign officials, the act draws a distinction between bribery and facilitation or "grease payments", which may be admissible if they are not against local laws. A company's legal department generally still has to approve such payments. The primary distinction is that grease payments are made to an official to expedite his performance of the duties he is already bound to perform.
A company can reduce its risk from currency fluctuations during an international business transaction by:
*Invoicing, Payment Timing, Hedging (foreign receivables insurance)* •Company remedies for own currency appreciation (raises price of exports; lowers cost of inputs; lowers value of foreign assets) -Pricing: adjust prices in line with company goals •Allow prices to increase to protect profit margins •Lower prices to protect market share -Marketing: •Reposition brand to justify higher prices (Gucci in Japan) •Develop new markets with stronger currencies -Production/Operatons •Increase productivity to maintain steady export prices & market share •Cut costs •Relocate production (foreign sourcing) to countries with weaker currencies ("natural hedge")
Why was Siemens liable under US law for violations of the FCPA?
- had an annual bribery budget of $40 to $50 million, which was used on corrupt government officials worldwide - although Siemen's actions weren't illegal under German law, the FCPA outlaws bribery abroad - Siemens was listed on US Stock Exchange and used US financial institutions to transfer their money
A government that pursues a strong currency policy has the following economic growth policy:
Domestic Led Growth Strategy (focusing on investment in companies, gov oversight, consumers buying goods)
Who is responsible for the idea that "language arranges the furniture of the mind?"
Edward Hall ("Silent Language")
Cultures where employees' relationships with their company are mostly limited to contractually-specified job requirements:
Found in LMEs
True or False: A company can expect that a decline in the value of its country's currency will give an immediate boost to its exports and therefore should adjust production accordingly.
False
In what country would a public display of anger be widely perceived as unprofessional and irresponsible?
Finland
The idea that culture is a "normal distribution" expresses the fact that:
It is group based and is shared with the group
In "The Ethnic Theory of Plane Crashes," when the co-pilot said "Captain, the weather radar has helped us a lot," it is an example of:
Mitigated Speech
The main motivation for Russian employees at Moscow Aerostar to attend the Supervisory Training Program was:
They were instructed to do so by their managers.
When there is high cultural distance between countries, companies should adopt strategies of high standardization (global efficiency) rather than adaptation (local responsiveness) with respect to their products, business processes and business models.
false? (double check in notes)
When giving feedback to employees, Korean team leaders are expected to:
give negative feedback & express disappointment for substandard work in front of all team members
Which business practice arises from an orientation to past time? (short term orientation)
→ Time viewed as more flexible and less definite -faster decisions, immediate results, bottom line is important -spending more common than saving
Which cultural region demonstrates a "recipient-oriented" communication style as opposed to a "transmitter-oriented" communication style?
-"transmitter-oriented" communication style. -recipient-oriented - Asian countries - responsibility for effective communication rests with the recipient to decode the message -transmitter-oriented - Western countries - responsibility for effective communication rests with the sender
The psychology experiment with "tappers" and "listeners" demonstrates the impact on communication of:
-Access to information - "curse of knowledge" -Those with knowledge (tappers) are cursed with not understanding the audience's (listeners) perspectives -experiment with people tapping tunes and having another person guess what the tune was
Considering the operation of the various principal institutions in a coordinated market economy (CME), the cultural value(s) that seems to be intrinsic to its operation?
-Collectivist culture -Consensual decision=customs characteristic of CMEs ensure more extensive "buy in" by diverse stakeholders than does "majority rule" that rests on "win-lose" premises - A "stakeholder" mentality provides more comprehensive inclusiveness -LMEs presume the primacy of minimally- constrained individual self-interest in minimally constrained free markets
A company's exposure to risks of changes in the value of a particular foreign country's currency varies with:
-Degree of foreign exchange rate uncertainty •A high exposure to a stable and predictable currency poses little risk; high volatility and exposure create the risk.
Which communication channel provides the information richness necessary to deal with an issue that is highly sensitive and/or complex?
-Face-to-face. -Face-to-face or personal communication is one of the richest channels of communication that can be used within an organization. Physical presence, the tone of the speaker's voice and facial expressions help recipients of a message interpret that message as the speaker intends. This is the best channel to use for complex or emotionally charged messages, because it allows for interaction between speaker and recipients to clarify ambiguity. A speaker can evaluate whether an audience has received his message as intended and ask or answer follow-up questions.
The most effective way to introduce change in a Japanese company is likely to be:
-High power distance, stiff hierarchy, and collectivist mentality means that an order from superiors supported by management is an effective way to introduce change -example: Rakuten, strong CEO and implementation towards "englishization"
Economic factors that will decrease the value of a country's currency:
-Inflation: erodes the value of a currency which loses purchasing power -Balance of trade (BOT)(current account) •BOT deficit increases supply of currency, lowers value -Government policies •Fiscal (spending/tax): deficits raise inflation & weaken a currency
Most airline crashes occur when:
-Mitigated speech concealed urgency. -Mitigated speech is a linguistic term describing deferential or indirect speech inherent in communication between individuals of perceived High Power Distance which has been in use for at least two decades with many published references (basically... indirectness)
Monochronic vs Polychronic
-Monochronic : punctuality, staying on schedule, order -Polychronic: people see the past present and future as one period// everything is flexible
In the Johannes van den Bosch case, how did Pablo express his disagreement with Johannes?
-Pablo uses questions to express disagreement: "How can you accept a deadline from our Firm without first having involved local management?" "Don't you think they are the first to be involved local management?"
The six cultural dimensions (including countries and scores)
1) individualism vs collectivism (USA 91, Guatemala6) 2) power distance (Malaysia 104, Austria 11) 3) uncertainty avoidance (Greece 112, Singapore 8) 4) masculinity vs femininity (Japan 95, Sweden 5) 5) long term vs short term (China 118, Pakistan 0) 6) indulgence vs restraint (Venezuela 100, Egypt 0)
The linguistic use of "mitigated speech" is characteristic of cultures that are high in:
-Power distance. -Power distance refers to the way in which power is distributed and the extent to which the less powerful accept that power is distributed unequally -High power distance: believe that power and authority are facts of life. Both consciously and unconsciously, these cultures teach their members that people are not equal in this world and that everybody has a rightful place, which is clearly marked by countless vertical arrangements. Social hierarchy is prevalent and institutionalises that inequality. Leaders are therefore expected to resolve disputes as well as make all the difficult decisions. Subordinates will simply comply with their leader rather than challenge him or her or try to arrive at their own solutions in dealing with conflict. They seldom challenge their leaders power. EX. many Asian countries, Mexico, Egypt -Low power distance: there is a preference for consultation and subordinates will quite readily approach and contradict their bosses. The parties will openly work towards resolving any dispute by stating their own points of view. If they cannot come to a satisfactory conclusion, they may choose to involve a mediator. Leaders actually encourage independent thought and contributions to problem solving and expect (within reason) to be challenged EX. Australia, US, many European countries
In the Moscow Aerostar case, what aspect of Russian culture explains the intrusiveness of the questions on the job application form?
-Required info about: age, parent membership in CPSU, diseases, children because Russia has a "Diffuse" culture.
When doing business in Finland, one should expect:
-Self-control is very important, You cannot show anger; it means you can't cope. -If a person is very temperamental and alive, expresses emotions like anger and happiness, the person is seen as infantile. -DOs: Don't show much emotion, silence is totally okay, don't get too angry or happy, don't compliment others, be modest
What aspect of the business environment in Latin American countries has encouraged the prevalence of family-owned companies?
-Strong family ties, no clear cut separation between family interest and business interest -The logic between family ties and protectionism discouraged growth through specialization which limited firms to conquer foreign markets. -High uncertainty avoidance -import barriers made it difficult to globalize, so companies specialized and diversified -diversification protects the family owned businesses from the region's political and economic volatility -weakness of legal system (from French civil law tradition) does not foster large corporate structures -family trust
Coordinated Market Economies (CMEs) have a propensity to produce the following outcome than do Liberal Market Economies (LMEs):
-Trust and complementary institutions and practices -synergy between different spheres of the economy: finance, corporate governance, and industrial relations -REALLY long term relationships
High cultural distance between countries most often leads companies to use the following form of establishment in making foreign market entry:
-findings demonstrated that as the cultural distance between countries increase, tendency to choose a Joint venture over an acquisition increase -as cultural distance increases: choose green fields or wholly owned subsidiaries over shared ownership; licensing over JVs or wholly owned subsidiaries increase; choose green field over acquisition increase; wholly owned subsidiaries less preferred than shared equity or tech licensing; choose management service contracts over franchised increased
A high level of business entrepreneurship (new venture startups) is associated with:
-innovation -fluid labor markets -flexibility
What factor determines which of the four elements of the CAGE framework is most relevant for a particular firm in evaluating the costs and risks of a foreign business environment?
-patterns of trust -linguistic differences -migration -CAGE: Cultural, Administrative, Geographic, and Economic difference between countries -flow of information, people, products and capital.
Institutional variations between different business systems endow firms in those systems with certain types of competitive advantage. Which of the following types of competitive advantage is characteristic of Liberal Market Economies (LME) like the US:
-radical innovation -cost control -fewer employment restrictions
The Confucian impact on culture is visible in its focus on:
-strict hierarchical relationships -respectful behavior (ritualized rules of conduct) in -business etiquette -key role of work teams & team building -male/female role differentiation
Which one of the following cultural values would NOT normally be found in a culture along with the other values listed below?
1st Cluster •Mastery •Individualism •Low uncertainty avoidance •High masculinity •Low power distance •Universalism •Doing (task) •Achievement •Specific •Low context •Order •Present, future •Competitive •Fixed time (monochronic) •Single focus •Linear thinking 2nd Cluster •Harmony, Constraint/subjugation •Collectivism •High uncertainty avoidance •Low masculinity •High power distance •Particularism •Being (relationships) •Ascription •Diffuse •High context •Flexibility •Past •Cooperative •Fluid time (polychronic) •Multi-focus •Systemic thinking
A strong currency has the following effect on a country's economic performance:
A wider trade gap: trade balance for goods and services Lowers inflation (lower import prices) Dampens growth (exports) Impacts interest policy via above effects
The aspect of foreign business environments that has been reported as most important for companies that off-shore SERVICES (as opposed to manufacturing)?
Access to qualified personnel
The Korean consultants showed the following cultural value orientation when they picked Jack Kim for the job working with Ellen:
Ascription-oriented culture (PhD, gender)
Employees in a country where the culture encourages clear authority relationships between employers and employees are likely to resist adopting the following organizational structure:
Autonomous? (double check this one in the notes)
Why are family-owned businesses unusually prevalent throughout Latin America?
Because Latin American extended families are typically very strong so there is no clear-cut separation between family interest and business interest.
Three potential benefits of off-shoring production (pick three):
Benefits of outsourcing are: -Gain proximity to fast-growing markets -lower production costs -rise of science and engineering talent outside West attracts operations -Clean balance sheets (offload capital costs) -Benefit from economies of scale -Need for speed: 24/7 operation becomes possible with outposts in different time zones
The major factor that created Boeing's problems with the production of the 787 Dreamliner:
Boeing authorized a team of parts suppliers to design and build major sections of the craft, which it planned to snap together at its Seattle-area factory. But outsourcing so much responsibility has turned out to be far more difficult than anticipated.
What aspect of culture creates the most difficulty (culture shock) in adjusting to a foreign culture?
Different behaviors Different meanings to different behaviors
Is it advisable for most multinational corporations to manage their foreign currency transactions centrally at headquarters or to decentralize them to subsidiaries?
CENTRALIZED at headquarters.
Which of the following characteristics is NOT typical of Coordinated Market Economies (CMEs):
Characteristics of CMEs: interventionist state role, coordinated inter-firm relations, concentrated company ownership, bank loan finance, participatory company management, stable employee tenure, specialized employee training
Which of the following characteristics is NOT typical of Liberal Market Economies (LMEs):
Characteristics of LMEs: regulatory state role, competitive inter-firm relations, distributed company ownership, stock(equity) finance, top-down company management, at-will employment, generalist employee training
Which of the following countries has a long historical tradition of favoring a large role for the central government (state) in the economy through ownership of companies and regulation?
China, Vietnam, India, Laos
Which of the following is NOT a complementary institutional practice of a Liberal Market Economy (LME)?
Complementary institutional practices -LMEs: in a system financed by dispersed equity markets & hostile takeovers, managers depend on current profitability, which fosters labor markets with high turnover & competitive wage-setting Labor markets that allow companies to cut costs in a downturn complement financial markets that provide access to funds depending on current profitability -Educational focus on general employee skills complements fluid labor markets (general skills are fungible) -Fluid labor markets foster tech transfer by labor mobility as does the legal system of formal, detailed contracts -Concentrated management authority makes it easy to fire workers in hard times and to rapidly adopt new strategies to seize new opportunities
Which cultural value fosters a fast "take-off" time among consumers in countries for the adoption of innovative new products?
Countries with people who are more open to new ideas
The costs of corruption to a country whose government officials engage in it include all of the following EXCEPT:
Country costs of Corruption: Distort "market mechanism" - penalize most efficient & honest firms economic growth "tax" - infrastructure investment increases economic growth - corruption increases infrastructure costs, which lowers infrastructure investment - ergo, corruption lowers growth government instability - corruption fosters scandal, opposition & turbulence higher cost of projects (bribe costs included in project expenses) inferior quality goods & services (bribe payers cut corners to recoup bribes) reduced FDI & market entry - market avoidance by foreign companies - attract high-corruption foreign countries distort local public expenditures - tax evasion reduces available resources - priority for projects that maximize corruption opportunities undermine institutions: courts & regulatory agencies
What purposes does culture serve for groups?
Create predictability, Foster affliction, and Increase cohesion.
What characteristic of culture explains why crimes of passion are more prevalent today in the American South than in the North and why more patents and divorces are issued in Chinese wheat growing regions than in rice-growing regions?
Crimes of passion are prevalent in the American South due to the culture of honor that has persisted there for hundreds of years. Other crimes are less common in the South. The people in wheat-growing areas looked more like "WEIRD" Westerners, but the rice growers showed the more classically Eastern communal and relational patterns. Conflict-averse communal cultures tend to have fewer divorces than individualistic ones, but they also create fewer individual innovations.
Which of the following statements is NOT true about the likely effects of high cultural distance (CD) on the behavior of companies?
Cultural distance is a function of differences in values and communication styles that are rooted in culture (demographic OR organizational). Countries with high CD are going to have to put more effort doing business with each other and realize that their own practices and customs may differ greatly from the person they're doing business with
Definitions of bribery and corruption that distinguish between "public" and "private" realms of life presume the following cultural value dimension:
Cultural value dimension of a specific culture (where private is separate from public) as opposed to a diffuse culture where there are no lines between public and private definitions of corruption: World Bank: abuse of public power for private benefit Transparency International (TI): misuse of entrusted power for private gain bribery: implies a -party transaction (briber & bribee)// consideration of value to influence the action of an official
Which phase of the cultural adjustment process refers to a state of confusion and ineffectiveness regarding one's accustomed interpersonal routines when dealing with members of the local population?
Culture Shock
A virus like Ebola can have an enduring impact on people's cultural behaviors like:
Culture used to be super friendly, kissing and hugging all over each other whether were seeing each other for first time or saw the person everyday. After ebola striked you could not do this anymore and changed the way people greet each other. Making people farther apart even in families because closeness used to be so physical. Hold hands in church. if have a party go around room and touch and talk to each person, but after ebola that is all gone now. Taxis used to cram as many people and animals as could fit, now it is a law that only 3 at a time.
Mikitani's approach to introducing the management policy of "Englishnization" at Rakuten represented the following decision-style:
Despite his concern at the hierarchical nature of Japanese culture & language, Mikitani's "Englishnization" scheme was a top-down mandate. LEARN ENGLISH OR ELSE! "Englishnization" implementation plan: -All 7100 employees at Rakuten, regardless if their work involves English -Two year deadline to learn English -Must reach 650 score on TOEIC exam -Consequences of failure: demotion ("loss of face")-a powerful cultural penalty -Study on own time -Study at own expense -Study with own guidance
The following is NOT an essential element of national business systems:
Elements of national business systems: state/economy relations: regulation, ownership inter-firm relations & market organization arms-length & contractual or dense relationships corporate ownership and management control (governance) ownership structure CEO prerogatives worker participation company finance: equity, loans industrial relations union density & power determination of wages, working conditions firm-employee commitments worker education and skills training general or specific outside or internal cultural values: specific to each country envelope and inform the way in which institutions perform each of these functions
What aspect of the situation made it difficult for Ellen and Jack to work together:
Even though Jack had no consulting or systems implementation experience, the team members listened to Jack's instructions over Ellen's because he was male and had a PhD.
Monochronic cultures prefer:
Events to happen in order. High value on punctuality and planning and staying to schedule. time is money.
Foreign subsidiaries of multinational companies that operate in foreign countries must expect that weakening currencies in those countries may have the following effect on business conditions in those countries:
Exports increase (cheaper) currency translation gains Higher cost of foreign debt service higher cost of foreign inputs
In An American in Paris, does the prevailing system of employee incentives (lunch tickets, vacations, etc.) appear to reflect what Frederick Herzberg calls "intrinsic" or "extrinsic" motivational factors?
Extrinsic... They work for the extra stuff not just their pay
An agreement with a bank to deliver a fixed amount of one currency for a fixed amount of another currency on an agreed future date (the value date) is called:
FORWARD MARKET CONTRACT
Which of the following is the most information-rich medium of communication?
Face-to-face interaction, by contrast, is information-rich. We interpret what people say to us not only from their tone and facial expressions, but also from their body language and pacing, as well as their synchronization with what we do and say.
People who speak the following languages have the highest household savings rates:
Futureless languages Different languages has different ways of referring to time → The language a person speaks can have as big an impact on savings behavior as whether or not they have a job. People who speak futureless languages (like the US) retire with about 25% more in savings than their future-oriented language speaking peers. U.S. - "it will rain tomorrow" or "I will need money for retirement." Chinese - "it rains tomorrow" or "I need money for retirement." That is, references to the future are treated the same as references to the present.
Which of the following research projects differentiates between values ("should be") and practices ("as is")?
GLOBE research project GLOBE is the acronym for "Global Leadership and Organizational Behavior Effectiveness," the name of a cross-cultural research effort that exceeds all others (including Geert Hofstede's landmark 1980 study) in scope, depth, duration, and sophistication.
Which scholar defines culture as "the collective programming of the mind distinguishing the members of one group or category of people from another?"
Geert Hofstede
Which analytical framework defines culture as the "collective programming of the mind which distinguishes one category of people from another?"
Geert Hofstede: 6 value dimesnsions
What change did Google make to its web site in Korea to adapt to Korean culture?
Google "enhanced its minimalist website in Korea to conform with Korean "cluttered" visual habits
In An American in Paris, what leadership style would enable John Williams to act in line with the cultural expectations of his French marketing managers?
He needed to develop a more autocratic style of leadership
A culture where effective communication involves more than just spoken or written words is called:
High Context Cultures
A culture where effective communication requires more than just spoken or written words is called:
High context culture → Comunication resides
Edward Hall's phrase "the silent language" is an indirect reference to the impact on communication of:
High context culture → communication resides not only in words but in "context" -context comes first in order before message -much context is culturally implicit -Ex. Chinese, Korean, Japanese, Vietnamese, Arab, Greek
Gestures are a particularly important element of interpersonal communication in...
High context cultures
The widespread use of honorific language such as "keigo" in Japan reflects a culture that is:
High power distance -Respectful, humble, polite -Verb endings, entire words shift according to relationships
Family-controlled firms in Latin America are often (list of characteristics).
Highly diversified, quick decision makers, low transparency, few foreign affiliates, low separation between personal and business
According to Marshall McLuhan's thesis that "the medium is the message," when Johannes van den Bosch sent his "stick to the facts" email to Pablo Menendez, the CONTENT of the message that Pablo received was determined by:
His Low-context cultures (individualist) -The message is the message -Communication is explicit, literal and verbal -Value in detailed documentation -Exclusion of nonverbal or contextual sources -Heavy reliance on content and words -Blunt, direct communication for clarity -low context communicators favor email, written messages; a high context communicator views
The respective responsibilities of the parties to an international business transaction for loading & unloading goods, arranging and paying for transportation, insurance, duties & taxes are outlined in:
INCOTERMS developed by the International Chamber of Commerce (ICC)
Which of the following macroeconomic factors will have the effect of depreciating the value of a country's currency?
Import prices rise, exports heat up, productivity decreases, increased interest rates, export led growth, imports decrease, tourism decreases, and foreign earnings increase Look at chart in doc
Which of the following DOES NOT appear to be a reason why Siemens' employees engaged in bribery in developing countries?
International Operations (Supply Chain)
If you are going to speak to a group in another country, would you hire a translator or an interpreter?
Interpreter
In the Johannes van den Bosch case, how did Johannes and Pablo differ culturally?
Johannes -communication style: direct neutral, low context -task (doing) view of organization -ready to communicate negative information -individualist -low power distance: egalitarian -monochronic time Pablo -indirect, affective, high context -relationship (being) view of organization -reluctant to communicate negative info -collectivist -high power distance: hierarchical, rankings -polychronic time
In the Ellen Moore case, when the Korean consultants said it was OK to send a woman, "if qualified," they were trying to say:
Koreans' criteria for qualification: gender and degree
The core difference between Liberal Market Economies (LMEs) and Coordinated Market Economies (CMEs) is:
LME focus on radical innovation while CME is incremental innovation
Activist shareholder campaigns to acquire board seats and influence management policy are most characteristic of:
LME's
Two effects of a country's increasing currency value on the finances of its multinational companies:
Lose foreign market share (higher export prices) •Airbus loses $1.48 B profit for every .10 euro gain on the $ (it sells planes in $ but incurs 50% of costs in €) •Nissan lost $2.3B in 2008 from currency fluctuations -Currency translation losses -Lower foreign debt service costs -Lower foreign input costs
In which culture is communication by email likely to be more widespread?
Low context cultures
Moscow Aerostar's key operational challenge to become sustainable was:
Major Strategic Challenge: Expat Replacement (an HR task): -Develop local supervisors and staff to run the hotel so expensive expats can go home •Symptoms of Staffing Trouble: -Overstaffing •Twice as many employees as in Western hotels •Low staff productivity -Growing number of expats •Planned decrease to 10 •Instead, increase from 20 in '91 to 22 in '92 -No local staff interest in supervisory jobs
Which practice arises from a monochronic attitude towards time?
Monochronic cultures like to do just one thing at a time. They value a certain orderliness and sense of there being an appropriate time and place for everything. They do not value interruptions. They like to concentrate on the job at hand and take time commitments very seriously. → USA, Canada, Northern Europe
When Johannes van den Bosch sent a series of schedules and deadlines to Pablo Menendez, his was demonstrating his cultural orientation of:
Monochronic time
According to Hofstede, which level of culture has at its basis certain unconscious values ("broad preferences for one state of affairs over others") learned in childhood and held over long periods of time by a majority of a group's population?
National Level
When a company shifts the location of production to a country where the company has sizeable sales in order to minimize the impact of currency changes on its costs of production it is called:
Natural Hedge
MNCs utilize this financial technique to offset credits and liabilities among subsidiaries in order to reduce overall requirements for foreign currency transactions that carry costly commissions and transfer fees.
Netting: an intra-company hedge through subsidiaries, affiliates, or partners A foreign associate creates an offsetting transaction so the two exposures net out and remove risk.
When faced with a foreign buyer's uncertain creditworthiness, a seller should avoid this payment method because it shifts most risk to the seller.
Open Account (exporter ships goods 1st and bills imports later) - Seller assumes both credit and currency risks
According to Hofstede, which level of culture focuses particularly on practices (heroes, symbols and rituals) that are easily learned and unlearned and frequently change in response to circumstances?
Organizational level
Two Non-economic factors that affect a country's currency value:
Political instability War
Which business practice arises from a polychronic time orientation?
Polychronic cultures like to do multiple things at the same time. A manager's office in a polychronic culture typically has an open door, a ringing phone and a meeting all going on at the same time. Though they can be easily distracted they also tend to manage interruptions well with a willingness to change plans often and easily. People are their main concern (particularly those closely related to them or their function) and they have a tendency to build lifetime relationships. Issues such as promptness are firmly based on the relationship rather than the task and objectives are more like desirable outcomes than must do's. → Latin America, the Arab part of the Middle East, or sub-Sahara Africa
A method or process by which a society allocates power and status among people:
Power distance??
Most companies have been LEAST likely to off-shore the following link in their corporate value chain:
Procurement
What business sector has the highest perceived incidence of bribery?
Public works/construction
The concept of "quality fade" as an unanticipated cost of outsourcing refers to:
Quality degradation over time after prototypes & first runs. reverse continuous improvement by suppliers can transform their profitless contracts into lucrative relationships
This is NOT a frequent reason that companies cite for offshoring:
Reasons for Offshoring: -focus own activities on areas of core competence -improve global operational efficiency -growing product complexity requires specialized expertise *********
Scholars like Hofstede identify cultural clusters of countries that have predominantly similar cultural profiles. Which of the following regions has NOT been identified as a relatively homogeneous cultural cluster?
Regions that HAVE been identified: Germanic Ger, Aust, Switz Nordic Fin, Nor, Swed, Den, Neth Latin America Latin Europe Fr, Belg, It, Sp, Port SE Asia HK, Phil, Indo, Sing Anglo US, UK, Can, Aust, NZ
Complete Edward Hall's observation that "the essence of effective cross-cultural communication lies not in sending the right message, but in..."
Releasing the right response
Which form of agricultural cultivation results in a higher degree of communal thinking and behavior?
Rice farming because it demands a high level of coordinated labor.
Which of the following is NOT considered a major source of risk from outsourcing global logistics services to a third-party logistics provider (3PL)?
Risks: -loss of control -excess inventory -empty shelves -damaged goods -theft
Which of the following behaviors was NOT characteristic of Russian employees at Moscow Aerostar:
Russian Characteristics include: Family comes first -High In-group collectivism: P (5.83), V (5.9) •Lack of punctuality (legacy of communism) -Polychronic •No concept of "service;" preference for intellectual work -Small service sector under communism •Low regard for individual rewards, perks or promotions -Low Individualism (Hofstede): 39 •Live for "now" (culture of scarcity) -Low future orientation: P (3.06) , V (5.6) •Complain ("glass half empty") •Low work ethic (better to "rest") -Low performance Orientation: P (3.53), V (5.68) •Take orders, avoid responsibility or initiative -Hofstede PD: 93 -GLOBE Power Distance: P (5.61) , V (2.73) •Ignorance of "work-appropriate" behaviors (relates to specific/diffuse dimension) -Drinking on the job -Weak social skills (telephone, make-up, attire) -Affective (Trompenaars: only 24% would not show emotions at work) •Rote ("passive") learning; avoid questions, role plays -High PD •Don't ask questions •Unfamiliarity with making choices, expressing personal preferences -Low Individualism (39)
The following aspects of an industry all correlate positively with the industry's perceived susceptibility to corruption EXCEPT:
Susceptible to corruption: -independence from the global economy -a country with minimal laws against corruption -a country run by a military dictatorship, with no elected leaders -a country with high trade barriers and limited regional commerce
"Take-off" (mass adoption by consumers) time for innovative new products varies with different countries and regions. If you were launching a new, innovative product in Europe, which of the following markets would you recommend as probably most hospitable for early adoption?
Sweden, Germany
The term for the distribution infrastructure required for products that need refrigeration but is often missing in developing countries:
The "Cold Chain"
What aspect of Canadian job design and performance expectations at Moscow Aerostar did not "fit" the cultural values of its Russian employees?
Russians don't understand the concept of "service". Only know hospitality towards family and friends Russians don't like to smile Russians aren't motivated by individual rewards or incentives.
Which cultural value fosters a faster "take-off" time among consumers in Scandinavia than in Mediterranean countries for the adoption of innovative new products?
Scandinavians were more open to new ideas
A high importance of "face" in certain cultures reflects the following cultural orientation:
Short term Orientation: which stands for virtues related to the past and present in particular, in respect for traditions and fulfilling social obligations.
Cultures where employees' relationships with their company are mostly limited to contractually-specified job requirements:
Specific -People keep work and personal lives separate. As a result, they believe that relationships don't have much of an impact on work objectives, and, although good relationships are important, they believe that people can work together without having a good relationship.
What cultural value underlies the Japanese aversion to awarding personal cash bonuses to employees as a reward for scientific and other innovations in a company.
The Japanese believe that all salarymen are equal and that the company stands above all
In the Ellen Moore case, the cause(s) of the project delays was/were:
The Korean team members weren't taking directions from Ellen. Instead, they listened to Jack, who gave the team members tasks that weren't required for the project deliverables and was not appropriately managing the client's expectations. The Korean consultants, including Jack, also lacked experience.
What aspect of Russian culture is not compatible with the practice of "situational leadership" (Paul Hersey & Ken Blanchard) in which appropriate leader behavior is contingent on situational factors such as the competence and commitment of employees?
The Russians are good at memorizing, not how to handle different situations; high power distance (take orders) and low individualism (unfamiliar with making choices and expressing personal preference)
A technological development that enabled companies to develop "inter-modal" transportation in global logistics after WWII:
The box (containers) ships→ trains → trucks
In the American in Paris case, John William's secretary Monique refused to help with mailing and quit her job because she believed:
The work he was asking her to do was below her job description , he violated her dignity// was below her station
What characteristic is NOT typical of national cultures:
These ARE characteristics of national cultures: Physical environments Historic sequences Colonial links Trade Military conquest Missionary Zeal Economic Systems Length of history
How did the Chinese manufacturer Haier attempt at first to motivate American workers at its factory in South Carolina?
Tried to adjust to American tastes by encouraging the best workers to stand in the footprints for recognition instead of humiliating bad workers, like they would do back in China.
Of the world's 7000 (or so) languages, is the greatest number in tropical regions or in more temperate climate zones?
Tropical regions near the equator -one theory about this is that there are more diseases in the tropics, so people are less likely to go mingle with outsiders -example: Ebola in Liberia killing a lot of people with close contact
According to Marshall McLuhan, if the "medium is the message," then what determines the content of communication?
Understanding Media "context of any medium is always another medium"
Which business practice characterizes a long-term-orientation?
Value schedules, keep appointments -persistance, save more, think about the future -more rash judgements when investing in the stock market, real estate -relationships are important
The core foundation of culture is:
Values
In An American in Paris, John Williams learned that in France the relationship between the government and business was:
Very strong
This theory holds that the grammatical structure of different languages affects the ways in which people who speak those languages think and behave.
Wharf Hypothesis or "Wharfism"
The effectiveness of pay cuts for management staff as a motivational tool at Fujitsu depends on a prevailing cultural value in Japan of:
Workers in Japan often feel a strong kinship to their employers, especially in times of crisis. Employees will work harder if they see their managers making sacrifices for the sake of the group.
The French term "dirigisme" that is often used to describe an aspect of the French business environment refers to:
a strong beneficent state, with heavy taxation, regulation and protection that reaches back to the construction of roads, canals and industrial mammoths
Achievement vs Ascription
achievement: what you have done ascription: who you are/know
"Pronoun drop" of the first person singular pronoun ("I") is a linguistic practice that occurs mostly in cultures that are:
collectivistic rather than individualistic
An emphasis on the universal validity of uniform, objective standards of corporate governance or behavior reflects:
coordinated market economies
An insular business environment like that in Japan, relatively closed to outside influences like inward foreign investment, immigration, and imports reflects:
coordinated market economy: group based
Defining characteristics of the German business system include:
corporate boards are structured in a way that insulates executives from stockholder agitation: Management boards are completely separate from supervisory boards, which are 50%-represented by staff and rarely back proposals that squeeze employees the founding family often yields significant influence
Hiroshige Mikitani expected "Englishnization" to contribute in specific ways to his program of global expansion at Rakuten. Which of the following were among his expectations?
expectations of "Englishnization": use of English would break down all cultural and linguistic boundaries and barriers, since English is a language with very few markers of underlying power relationships Englishnization allows greater integration across subsidiaries in knowledge and personnel helps keep Japan-based executives aware of what is happening in the US
In a country like Costa Rica, where travel directions may be given using ambiguous "reference points" that only insiders know (e.g. "near where the fig tree was"), the prevailing culture is:
high context culture
A possible "hidden cost" of offshoring manufacturing is the need to ensure that an offshoring company also has strong skills in:
high level of logistics capabilities *Design and innovation
Why did Ellen object to Jack's decision to conduct the market research project for the client?
it exceeded the scope of the contract; not enough time or resources for additional work
The Japanese word for honorific language that distinguishes the social standing of speakers and reflects Japan's hierarchical society is:
keigo
Which of the following conditions DOES NOT correlate positively with perceived levels of corruption in a country?
level of economic development (GDP) negative correlation More GDP per person = less corruption Lower salaries = invites corruption
A high level of stock (equity) ownership in a country's financial structure reflects:
liberal market economy
When Johannes van den Bosch decided to cool off and edit his email to Pablo Menendez, it demonstrated the following aspect of culture:
neutrality
The Japanese samurai code of "Bushido" left a legacy of cultural values that persist in Japanese cultural practices to this day, including (mark as many as necessary):
obligation to one's family and job; shame if they fail; strong allegiance; self-control
The practice of establishing wholly-owned subsidiaries overseas to produce products or services is called:
offshoring
What two dimensions of corruption are commonly viewed as having an impact on doing business?
pervasiveness (amount, extent): widespread arbitrariness: predictability (size, target, frequency and effectiveness of bribes) arbitrary (uncertain) predictable (normed, systematic)
In countries with a high level of power distance, employees expect effective leaders to:
tell them what to do High power distance countries are likely to be collectivist. Characteristics include harmony, collectivism, high uncertainty avoidance, low masculinity, particularism, stress being (relationships) rather than doing (task), ascription, diffuse, high context, flexibility, past, cooperative, fluid time (polychronic), multi-focus & systemic thinking.
In Harlan, Kentucky, Malcolm Gladwell suggests that a "culture of honor" reflects adaptation to the following socioeconomic circumstances:
tend to take root in highlands and other marginally fertile areas live on rocky mountains → can't farm and become a herdsman herdsmen are very aggressive and have to show that they aren't weak a herdsman is off by himself, versus farmers, who depend on the cooperation of others in the community herdsmen worry about their animals being stolen, whereas farmers don't the inhabitants of the region were Scotch-Irish, which were a remote and lawless territories that had been fought over for hundreds of years
What US law prohibits bribery?
the Foreign Corrupt Practices Act
In preparing an employee for an upcoming expatriate assignment working in a foreign country, it is important to consider:
the foreign country's business culture and etiquette
Which of the following is a distinctive feature of traditional Japanese capitalism?
the practice of holding shares in one another to create a web of relationships meant to keep unwanted interference to a minimum. Japan's biggest corporations are linked together in a web of mutual shareholdings that shield company executives from the pressures of the stock market. Japanese executives have long gone unpenalized for failed investments, refusing to withdraw from money-losing businesses, hoarding cash and bringing shareholders perennially low returns
The widespread use of honorific language such as "keigo" in Japan reflects a culture that is:
very respectful and has high power distance
A large role for the state in economic activities is characteristic of countries with the following cultural value:
•Developmental states: -High level of state intervention & effectiveness; financial system reliant on banking; concentrated ownership by families, state, or companies; -Examples: India, China, Malaysia, Thailand •Predatory states: -High level of state intervention dominated by elites; variable effectiveness of state; concentrated ownership (families or state); weak institutions; -Examples: Philippines, Vietnam, Laos, Indonesia
Cultures that are comfortable making exceptions to general rules or principles:
•Particularism -People believe that each circumstance & relationship dictates the rules. Their response to a situation may change, based on what's happening in the moment, and who's involved. Exceptions to rules ("it depends") based on •Circumstances of the situation •Personal relationships (in-group)
The degree of risk associated with changes in currency values depends on:
•Risk arises from the extent of exposure to a foreign currency & that currency's uncertainty (volatility) -Exposure arises from one's footprint in a currency zone: exports/imports and from foreign assets (factories, etc) and liabilities (loans, etc). •If a company has no exports or foreign assets & liabilities, it has little exposure to foreign exchange risk •Exposure can be transaction or translation
What type of foreign currency exposure arises for a company from the amount of assets & liabilities held in a particular foreign currency?
•Translation exposure (accounting consolidation) is proportional to the amount of assets & liabilities held in foreign currencies
