Deck 5: The Cultural Environment of Global Business

Question 1

The level of education held by people in foreign countries must be such that high-tech products can be accepted because the market knows how to use them.

Answer 1

True

Question 2

Power distance examines the extent to which societies tolerate risk or are risk averse.

Answer 2

False

Question 3

Research studies find that culture is not learned; rather it is inherited.

Answer 3

False

Question 4

In ____ translation, a message is translated from English to another language, then someone skilled in that foreign language translates it back into English; this second translation can then be compared to the original English version.

A)vertical
B)horizontal
C)forward
D)backward
E)diagonal

Question 5

Hofstede's masculine vs. feminine dimension is the extent to which a society values traditionally masculine attributes (assertiveness, competition)or traditionally feminine ones (modesty, caring for others).

Question 6

According to the GLOBE Project, the lowest level of institutional collectivism existed for the Anglo group.

Question 7

The primary reason why language mistakes occur in global business is that organizations tend to use backward translation.

Question 8

Mexican business executives who buy business-to-business products from U.S. suppliers indicate that "knowledge of the Mexican culture" and "enthusiasm" were the most important cultural variables determining from which supplier they purchased. This example of which of the four characteristics of culture which is important for global companies to recognize?

A)Culture is learned, not inherited.
B)It is nearly impossible to change an entire county's culture.
C)It is the responsibility of the global firm to ascertain the level of importance of various aspects of culture in the foreign markets it serves.
D)Companies' operations, chiefly marketing and management, need to recognize and adjust to the cultural environment existing in the countries the global company serves.
E)Culture is inherited, not learned.

Question 9

The use of jargon is especially useful when conducting business meetings with foreign personnel.

Question 10

Ironically, studies have shown that people who have lived and worked abroad are not particularly good sources of informatin about the cultures of various countries.

Question 11

When doing business in Japan, it is appropriate to look directly into the eyes of your hosts.

Question 12

In Arab countries, business executives will often digress from the primary purpose of the meeting, then eventually return to the topic initially discussed.

Question 13

Because Turkey is a Muslim country, the consumption of alcoholic beverages is prohibited there.

Question 14

Of the following, which is NOT a characteristic of culture that is important for global companies to recognize?

A)Culture is learned, not inherited.
B)It is nearly impossible to change an entire country's culture.
C)It is the responsibility of the global firm to ascertain the level of importance of various aspects of culture in the foreign markets it serves.
D)Companies' operations, chiefly marketing and management, need to recognize and adjust to the cultural environment existing in the countries the global company serves.
E)Culture can be imposed from home country to host country.

Question 15

Latin Americans are not as conscious about time as are North Americans.

Question 16

The ability of a firm to adjust to a culture different from its own is called acculturation.

Question 17

_____ refers to the way a society does things.

A)Values
B)Attitudes
C)Manners and customs
D)Stances
E)Outlooks

Question 18

Latin American negotiators will frequently engage in long periods of silence, or may have peripheral discussions among one another while ignoring foreign business people in the room.

Question 19

______ communication refers to tone of voice, gestures, eye contact, body positions, facial grimaces, and other body language that accompanies verbal communication.

A)Verbal
B)Nonverbal
C)Informal
D)Formal
E)Backward

Question 20

Guanxi refers to the relationship between subordinates and superiors. It denotes friendship among unequals involving unlimited exchanges of favors; thus, it is not based upon sentiment.

Question 21

In Arab countries, business executives will often digress from the primary purpose of the meeting, then eventually return to the topic initially discussed. This is an example of cultural _____.

A)aesthetics
B)attitudes
C)manners and customs
D)social institutions
E)outlooks

Question 22

In Arab countries, it is crucial for a visitor to

A)use the left hand to exchange greetings.
B)avoid sitting so that the sole of one's shoe is shown.
C)praise his or her hosts effusively.
D)insist on staying on-topic at all times.
E)ask about the hosts' wives and children.

Question 23

In ______, teachers are so revered that walking in their shadows is viewed as impolite.

A)Mexico
B)Korea
C)Russia
D)Saudi Arabia
E)India

Question 24

According to the GLOBE Project research, _____ was ranked first on power distance.

A)Germanic Europe
B)Southern Asia
C)Eastern Europe
D)the Arabic group
E)Latin Europe

Question 25

According to Hofstede, the United States is considered a(n)

A)authoritarian country.
B)collectivist country.
C)high power distance country.
D)feminine country.
E)highly individualistic country.

Question 26

According to Hofstede, which of the following countries is best described as a highly feminine culture?

A)Mexico
B)Belgium
C)Greece
D)Norway
E)Japan

Question 27

In some countries, a high premium is placed upon foreigners and foreign items, as they are associated with sophistication -Belgian chocolate, for example, or Swedish automobiles. In other countries, there is subtle resistance to foreign items. This is an example of a cultural _____.

A)value
B)social institution
C)custom
D)stance
E)outlook

Question 28

When doing business in China, it is important to remember that

A)exchanges are often uneven, working to the advantage of weaker members in the relationship.
B)persons of low rank never have any influence or power in a relationship.
C)an emotional appeal to superiors will almost always be successful.
D)one must never give in to any demands of the Chinese hosts.
E)obtaining the favor of subordinates will be seen as a sign of weakness.

Question 29

According to the GLOBE Project research, _____ has emerged as the group that was the most in favor of uncertainty avoidance.

A)Germanic Europe
B)Southern Asia
C)Eastern Europe
D)the Arabic group
E)Latin Europe

Question 30

Feelings or opinions are called

A)values.
B)attitudes.
C)manners.
D)customs.
E)aesthetics.

Question 31

The color black in the United States indicates mourning, but in Japan white is the color of mourning. Green is an acceptable color in Muslim countries; all flags of those countries contain green. These are examples of which of the following?

A)Material culture
B)Aesthetics
C)Social institutions
D)Stratification
E)Intangible culture

Question 32

Of the following, which is NOT true regarding Hofstede's cultural dimensions?

A)Japan and Mexico are highly collectivistic.
B)Australia and the United States are high power distance countries.
C)Denmark has been described as a highly feminine culture.
D)Finland and Sweden are less tolerant of risk than Portugal and Brazil.
E)China and Japan have much longer time horizons than do most Western nations.

Question 33

Which of the following is NOT one of the nine cultural variables researched by the GLOBE Project?

A)Power distance
B)Uncertainty avoidance
C)Humane orientation
D)Performance orientation
E)Emotionality

Question 34

In China, consumers drink soup, which usually contains rice, and do not use a spoon. In Muslim countries, it would be inappropriate to bring a gift for another man's wife. These are examples of cultural_____.

A)value
B)attitude
C)manners and customs
D)stance
E)outlook

Question 35

Of the following, which dimension identified by Hofstede refers to the level of egalitarianism in a society?

A)Individualism vs. collectivism
B)Power distance
C)Masculine vs. feminine
D)Uncertainty avoidance
E)Internal control vs. external control

Question 36

_____  infrastructure refers to housing, medical services, and educational institutions.

A)Material
B)Technological
C)Social
D)Financial
E)Economic

Question 37

_____ refers to the way people in a society relate to one another within group settings.

A)Material culture
B)Aesthetics
C)Social institution
D)Stratification
E)Intangible culture

Question 38

Of the following, which is NOT a primary or secondary source that can be used to learn about foreign countries' cultures?

A)The U.S. Department of Commerce Commercial Guide
B)The Economist's Intelligence Unit
C)Culture Grams
D)Craigshead's International Business, Travel and Relocation Guide to 84 Countries
E)Forbes's Countries of the World

Question 39

_____refers to a Korean philosophy stressing harmony among unequals, loyalty to parents and authority figures, and superiors being responsible for the well-being of subordinates.

A)Guanxi
B)Inwa
C)Yangban
D)Stratification
E)Aesthetics

Question 40

Of the following, which is NOT a cultural aspect of doing business in Korea?

A)The number 1 is good, whereas the number 4 signifies death.
B)Business card etiquette is the most important aspect of closing the deal.
C)Younger brothers and sisters are not allowed to use the names of their older siblings.
D)"Yangban" refers to the noble class.
E)Children are not supposed to say their parents' names, even when used with a title.

Question 41

The ______ variable refers to the degree to which a society compartmentalizes roles.

Question 42

The Chinese philosophy that denotes friendship among unequals involving unlimited exchanges of favors; thus, it is not based upon sentiment is referred to as "_____".

Question 43

When doing business in _____, it is important to understand that potential customers want to develop a personal relationship before doing business with foreign executives. Dinner exchanges and lunch meetings provide a good time for executives to get to know one another better. Dinners most often occur in the late evening, at 9 or 10pm.

A)China
B)Japan
C)Korea
D)Latin America
E)Arab countries

Question 44

Briefly describe any four elements of culture. Provide an example of each.

Question 45

Uncertainty avoidance examines the extent to which societies tolerate ________.

Question 46

Briefly describe the four characteristics of culture important for global companies.

Question 47

________ refers to learned behavior; a way of life for one group of people living in a single, related and independent community.

Question 48

The _________ variable refers to how rewards in a society are handed out.

Question 49

Differentiate between the cultural dimensions of doing business in Latin America and Arab countries.

Question 50

Which of these expressions should an American businessperson avoid in a meeting with foreign business representatives?

A)"Today we will be discussing the new contract."
B)"It is my pleasure to meet with you today."
C)"Let's run this idea up the flagpole."
D)"I look forward to working with you."
E)"Let's discuss this idea further."

Question 51

In which country might an American businesswoman find her hosts especially reluctant to work with her?

A)Germany
B)Mexico
C)Saudi Arabia
D)Canada
E)South Africa

Question 52

Based on what you have learned about culture, which management styles do you think would work best when working with clients from the Middle East? Explain your answer.

Question 53

The Chinese philosophy that denotes friendship among unequals and unlimited exchanges of favors is referred to as _____.

Question 54

The extent to which a society expresses itself emotionally is defined by Trompenaars as ________variable.

Question 55

Would you characterize the United States as a "masculine" or "feminine" country? Defend your answer.

Question 56

Time _______is the extent to which a society emphasizes short-run or long-run time horizons.

Question 57

________ is Trompenaars's cultural variable that refers to the importance of rules versus relationships.

Question 58

Of the following, which is NOT true about managing and marketing in overseas markets?

A)Only one management style need be used.
B)There can be different cultural groups within countries of which organizations need to be aware.
C)Advertising campaigns must be tailored to local cultures.
D)Culture has an impact on communication styles.
E)Clear communication can improves the outcomes of management decisions.

Question 59

Power distance is the cultural dimension that refers to ______ (equality)versus authority.

Question 60

A management style that stresses competition among workers and among companies would likely not work well in

A)China.
B)Germany.
C)Canada.
D)the United States.
E)Russia.

Question 61

Scenario - The Sandman Group The Sandman Group is a multinational pharmaceutical business, which provides needed medications to a variety of foreign markets around the globe.  It has recently acquired a new customer that is based in Saudi Arabia.  This area of the world is new to the company.  Sandman plans to send ten representatives and managers to the Saudi region to better serve this new client's needs.  The company feels confident in its products and its people and believes strongly they will be able to accommodate the needs of this client.The Sandman Group is determined to be successful in its business dealings with its newest Saudi customer.  It has been working diligently with the ten representatives and managers it plans to send into the region.  Sandman wants each one to be well versed in the culture of the region before they depart on their assignment.  Which one of the following would not be of high concern for those individuals to learn before leaving the United States?  

A) Effective verbal communication skills
B)Awareness of non-verbal language and its meanings
C)Food for eating must be prepared in the halal way
D)Financial infrastructure of the region
E)Knowledge of the value system of the region

Question 62

Scenario - The Sandman Group The Sandman Group is a multinational pharmaceutical business, which provides needed medications to a variety of foreign markets around the globe.  It has recently acquired a new customer that is based in Saudi Arabia.  This area of the world is new to the company.  Sandman plans to send ten representatives and managers to the Saudi region to better serve this new client's needs.  The company feels confident in its products and its people and believes strongly they will be able to accommodate the needs of this client.The Sandman Group realizes the business must be able to adjust to the vastly different Saudi culture quickly in order to retain this new client.  Which of the following best describes what the Sandman Group needs to accomplish?

A)Proliferation
B)Ascription
C)Acculturation
D)Guanxi
E)Social stratification

Question 63

Scenario - Reardon Enterprises Reardon Enterprises was founded in 1985 by Jonas and Samuel Reardon.  Initially this company was based solely in Santa Fe, New Mexico and sold products only in the U.S. market.  Now, this organization has grown to become fifth in the fine glassware industry in the world.  It proudly claims the distinction of having 14 manufacturing facilities located on foreign soil.  It currently provides its delicate and refined glass products to 24 foreign marketplaces around the world. Samuel continues to work in the field and feels his expertise in foreign relations is a large part of the reason the company has known such global success.  While Jonas contends the factories and workers located on foreign soil should not be treated differently from those in Santa Fe, Samuel contends it is important to know how the other countries operate.  Even with the differences in business philosophies and beliefs between the two owners, Reardon Enterprises remains a multi-billion dollar operation with a glistening future ahead of it. Jonas has decided that Samuel makes a valid point when he states the importance of knowing the culture of the foreign country in which they wish to conduct business.  Jonas has decided to learn as much as he can about the culture of Japan in order to be better prepared for the company's business endeavor there.  Which of the following would not be a valued source of information about foreign cultures?  

A)U.S. Department of the Interior
B)Discussion with individuals who have worked in Japan
C)Craigshead's International Business
D)Doing Business in 118 Countries by Price Waterhouse Cooper
E)Country Report from the Economist

Question 64

Scenario - The Sandman Group The Sandman Group is a multinational pharmaceutical business, which provides needed medications to a variety of foreign markets around the globe.  It has recently acquired a new customer that is based in Saudi Arabia.  This area of the world is new to the company.  Sandman plans to send ten representatives and managers to the Saudi region to better serve this new client's needs.  The company feels confident in its products and its people and believes strongly they will be able to accommodate the needs of this client.The representatives of Sandman must be aware of cultural do's and don'ts of the Saudi Arabia region.  Which one of the following would be considered unacceptable or inappropriate for them to do during a business meeting?

A)Maintaining good posture.
B)Not inquiring about the wives of foreign businessmen.
C)Not overly praising the possessions of the Arab host.
D)Not bringing a woman to the meeting without first seeking the host's approval.
E)Sitting with the sole of the shoe showing.

Question 65

Scenario - Reardon Enterprises Reardon Enterprises was founded in 1985 by Jonas and Samuel Reardon.  Initially this company was based solely in Santa Fe, New Mexico and sold products only in the U.S. market.  Now, this organization has grown to become fifth in the fine glassware industry in the world.  It proudly claims the distinction of having 14 manufacturing facilities located on foreign soil.  It currently provides its delicate and refined glass products to 24 foreign marketplaces around the world. Samuel continues to work in the field and feels his expertise in foreign relations is a large part of the reason the company has known such global success.  While Jonas contends the factories and workers located on foreign soil should not be treated differently from those in Santa Fe, Samuel contends it is important to know how the other countries operate.  Even with the differences in business philosophies and beliefs between the two owners, Reardon Enterprises remains a multi-billion dollar operation with a glistening future ahead of it. Reardon Enterprises has its second largest manufacturing facility located in South America.  Which one of the following would not be an important cultural fact Samuel and Jonas should know before conducting business meetings there? 

A)Formal manners and attire are valued at dinner business meetings
B)Business dealings must be discussed first and decisions made quickly
C)Development of a personal relationship should come before conducting business
D)Time is not an essential entity in that culture for it is believed there is always tomorrow
E)Dinner meetings are considered a time to get to know those who would be doing business together

Question 66

Scenario - Reardon Enterprises Reardon Enterprises was founded in 1985 by Jonas and Samuel Reardon.  Initially this company was based solely in Santa Fe, New Mexico and sold products only in the U.S. market.  Now, this organization has grown to become fifth in the fine glassware industry in the world.  It proudly claims the distinction of having 14 manufacturing facilities located on foreign soil.  It currently provides its delicate and refined glass products to 24 foreign marketplaces around the world. Samuel continues to work in the field and feels his expertise in foreign relations is a large part of the reason the company has known such global success.  While Jonas contends the factories and workers located on foreign soil should not be treated differently from those in Santa Fe, Samuel contends it is important to know how the other countries operate.  Even with the differences in business philosophies and beliefs between the two owners, Reardon Enterprises remains a multi-billion dollar operation with a glistening future ahead of it. Samuel is quite knowledgeable about the foreign cultures where Reardon Enterprises conducts its operations.  He understands the vital characteristics surrounding a country's culture.  Which one of the following is not one of these characteristics?  

A)Culture is learned through associations and family.
B)A company's marketing and management must adjust and adapt to the culture of the foreign marketplace.
C)Culture is not dynamic and changes slowly over a long period of time.
D)Companies have the responsibility to understand what is valued and accepted in the foreign marketplac
E)Culture is inherited from others living within the society.