Deck 4: Culture and Ethics in International Business

Question 1

Ethnocentricity improves the ability to manage business projects and new business practices abroad.

Answer 1

False

Question 2

Subjective elements of a culture include values, customs, and ideas, while objective elements include buildings, roads, and tools.

Answer 2

True

Question 3

It is customary for employees in Asian countries to change jobs frequently in search of better wages and benefits, and as a result Western managers find it difficult to retain employees in these nations.

Answer 3

False

Question 4

Some elements of capitalism, such as hard work and individual achievement, are based on the ethics and values of Protestantism.

Question 5

In monochronic cultures, where people are highly focused on the clock, managers adhere to a strict schedule of meetings and activities.

Question 6

To ensure they are upholding ethical standards, international firms should focus exclusively on obeying the laws of their host countries.

Question 7

Intellectual property rights developed in one country are guaranteed throughout the world.

Question 8

Practicing sustainability typically increases production costs but has the benefit of smoothing out relations with foreign governments.

Question 9

A company's code of ethics is a cure for all of its ethical dilemmas.

Question 10

In resolving ethical dilemmas, the opinions of individuals involved are more important than the facts of the situation.

Question 11

A polycentric orientation refers to the ________.

A) tendency of managers to develop a strong affinity with the countries where they do business
B) use of one's own culture as the standard for judging other cultures
C) ability to understand a business or market without regard to country boundaries
D) tendency to commit blunders in cross-cultural communications, putting human values at risk

Question 12

Considering the iceberg metaphor proposed by anthropologists to explain the layers of a culture, which of the following would be the most deeply embedded?

A) cultural attitudes and values
B) business relationships
C) native cuisine
D) ways of greeting

Question 13

Which of the following occurs the longer a person works in a particular profession and workplace?

A) Individuals grow insensitive to cultural differences among co-workers and peers.
B) Individuals become increasingly influenced by the professional and corporate culture.
C) Individuals lack the desire to change employers due to corporate loyalties.
D) Individual differences among co-workers from different cultures become blurred.

Question 14

All of the following are examples of managerial tasks in which cross-cultural proficiency is essential except ________.

A) communicating with business facilitators in one's own country
B) preparing promotional materials for emerging markets
C) structuring international business deals
D) selecting foreign distributors

Question 15

Which of the following statements is an example of an idiom?

A) David is in "a lot" of trouble because he missed a deadline.
B) Erica has been deluged with an overabundance of work.
C) The office was "like a graveyard" yesterday because we lost the bid.
D) In creating the new software, Sally found that necessity is the mother of invention.

Question 16

What is the most likely reason that northern Europe and North America are low-context cultures?

A) People from both regions learn the value of slow negotiations based on trust.
B) People from both regions are raised to show concern and respect for others.
C) Both regions have historically placed value on developing personal relationships.
D) Both regions have a history of relying on rhetoric to convey ideas and opinions.

Question 17

Business dealings in low-context cultures are characterized by which of the following?

A) sensitivity
B) respect
C) efficiency
D) rituals

Question 18

As defined by ________, four dimensions of national culture include long-term orientation and power distance.

A) Edward T. Hall
B) Geert Hofstede
C) Howard Perlmutter
D) M.J. Herskovits

Question 19

High power-distance countries are characterized by which of the following?

A) a political interest in maintaining a middle-class status for all citizens
B) a desire to minimize gaps between the wealthy and the impoverished
C) a lack of concern regarding the inequalities between the weak and the powerful
D) an autocratic government intent on maintaining the status quo

Question 20

In which of the following countries are the opinions of group members and group harmony highly regarded?

A) Ireland
B) Canada
C) Australia
D) China

Question 21

Firms that would rate high on power distance would most likely be characterized by which of the following?

A) concentrated power among executives and little autonomy for subordinates
B) equalized power among executives, managers, and subordinates
C) minimal power among executives and concentrated power among mid-level managers
D) total autonomy for executives, managers, and subordinates

Question 22

All of the following characterize masculine cultures except ________.

A) interdependence
B) determination
C) self-confidence
D) competitiveness

Question 23

All of the following cultural values are credited for the East Asian Miracle except ________.

A) self-control
B) discipline
C) loyalty
D) stability

Question 24

An employee who often watches his clock throughout the day most likely works in which of the following countries?

A) Costa Rica
B) Canada
C) Morocco
D) France

Question 25

Major world religions include all of the following except ________.

A) Islam
B) Hinduism
C) Animism
D) Christianity

Question 26

The purpose of material productions in a society is to ________.

A) enable people to live and work in their environments
B) communicate a message of core values and beliefs
C) distinguish one culture from another
D) provide an outlet for creative expression

Question 27

Approximately how many languages are spoken in the world today?

A) 2,000
B) 5,000
C) 7,000
D) 10,000

Question 28

Self-reference criterion can best be defined by which of the following?

A) the tendency to assume all people from one culture are the same
B) the tendency to disregard the values and beliefs of other cultures
C) the propensity to view other cultures through the lens of one's own culture
D) the propensity to value one's own culture more than other cultures

Question 29

In international business, successful managers are able to ________.

A) utilize a self-reference criterion
B) adapt to cultural differences
C) utilize information technology more skillfully
D) avoid the need to analyze critical incidents

Question 30

Corruption is defined as ________.

A) the enforcement of existing corporate practices
B) an act that violates a country's laws
C) the abuse of power to achieve illegitimate personal gain
D) facilitating payments illegally to obtain favors

Question 31

Moral principles and values governing behavior regarding right and wrong are known as ________.

A) attitudes
B) ethics
C) laws
D) standards

Question 32

Which of the following protects books and software from unauthorized use?

A) patent
B) trademark
C) copyright
D) domain registration

Question 33

A copyright is granted for ________ but not for ________.

A) books; software
B) music; movies
C) works of art; manufacturing processes
D) insignias; TV shows

Question 34

An international human rights organization recommends that its member countries review their human rights policies on a periodic basis to ensure that their governments are upholding ethical standards for the treatment of prisoners. Which of the following represents the most effective reasoning in support of the organization's recommendation?

A) Ethical policies and practices tend to remain consistent within the same country over time.
B) Nations should only enforce ethical standards that have been approved by other nations.
C) Nations should enforce those ethical standards that have been adopted in other nations.
D) Ethical standards change over time, so national policies should be updated as necessary.

Question 35

An ethical relativist would most likely argue that ethical truths are ________.

A) consistent in application
B) different from group to group
C) based on ancient principles
D) absolute across societies

Question 36

Japanese Supercenter
The Tag-Mart chain of discount superstores is nearing completion of its new supercenter in Tokyo. The Tokyo store is the first foreign store for the large U.S.-based company. Tag-Mart offers a large variety of products at virtually unbeatable prices. A group of Tag-Mart representatives has traveled to Tokyo to inspect the new store and hire a store manager. The top two contenders for the position are Hisako Aoki and Takematsu Sato. Aoki has 25 years of experience managing a local department store renowned for its customer service. Sato, born and raised in Japan, earned a college degree in the U.S. before working six years as a manager at a Texas Tag-Mart.

-Which of the following questions would be more important to evaluate when the Tag-Mart top management decides which candidate should be store manager?

A) How many shoppers are expected at the Tokyo Tag-Mart grand opening sale?
B) How many locally owned stores will Tokyo Tag-Mart compete against?
C) Will customers at the Tokyo Tag-Mart desire strong customer service or a U.S.-style shopping experience?
D) What is the expected age range and income of Tokyo Tag-Mart shoppers?

Question 37

Japanese Supercenter
The Tag-Mart chain of discount superstores is nearing completion of its new supercenter in Tokyo. The Tokyo store is the first foreign store for the large U.S.-based company. Tag-Mart offers a large variety of products at virtually unbeatable prices. A group of Tag-Mart representatives has traveled to Tokyo to inspect the new store and hire a store manager. The top two contenders for the position are Hisako Aoki and Takematsu Sato. Aoki has 25 years of experience managing a local department store renowned for its customer service. Sato, born and raised in Japan, earned a college degree in the U.S. before working six years as a manager at a Texas Tag-Mart.

-Which of the following best supports the selection of Sato over Aoki?

A) familiar with Tag-Mart operations
B) skilled in employee training techniques
C) informed about local competitors
D) well-known among local exporters

Question 38

Phone Center
The Technix Computer Corporation recently finished construction of a customer service phone center in New Delhi, India. Phone center agents will be responsible for answering technical questions from customers around the globe. Technix has hired 55 local computer experts as phone agents, and a training session is underway. Technical specialists and call center specialists from the United States have flown to India to train the new Indian employees. Hank Patelli, a senior manager of a Technix phone center in Michigan, will oversee the New Delhi phone center for six months until a local manager can be hired and trained to replace him.

-Which of the following activities would be the most beneficial to Hank's success as a manager in New Delhi?

A) take an intensive course in customer service operations
B) acquire knowledge about living and working in New Delhi
C) take a refresher course in the latest telecommunications technologies
D) acquire a working knowledge of Hindi, the language common to India

Question 39

Phone Center
The Technix Computer Corporation recently finished construction of a customer service phone center in New Delhi, India. Phone center agents will be responsible for answering technical questions from customers around the globe. Technix has hired 55 local computer experts as phone agents, and a training session is underway. Technical specialists and call center specialists from the United States have flown to India to train the new Indian employees. Hank Patelli, a senior manager of a Technix phone center in Michigan, will oversee the New Delhi phone center for six months until a local manager can be hired and trained to replace him.

-Which of the following character traits will be the most useful to Hank during his time in the New Delhi service center?

A) assertiveness
B) adaptability
C) compassion
D) clarity

Question 40

Phone Center
The Technix Computer Corporation recently finished construction of a customer service phone center in New Delhi, India. Phone center agents will be responsible for answering technical questions from customers around the globe. Technix has hired 55 local computer experts as phone agents, and a training session is underway. Technical specialists and call center specialists from the United States have flown to India to train the new Indian employees. Hank Patelli, a senior manager of a Technix phone center in Michigan, will oversee the New Delhi phone center for six months until a local manager can be hired and trained to replace him.

-After the first training session, a number of the Michigan employees expressed frustration that the Indian employees lacked technical knowledge because none of them asked questions or offered answers. Which of the following would be the best way for Hank to handle the situation?

A) Remind the American employees that the Indians may be showing respect by remaining silent.
B) Order the Indian employees to interact more during the session.
C) Host a traditional American barbecue so the American and Indian employees can get acquainted.
D) Ignore the complaints of the American employees and continue the training sessions as planned.

Question 41

Phone Center
The Technix Computer Corporation recently finished construction of a customer service phone center in New Delhi, India. Phone center agents will be responsible for answering technical questions from customers around the globe. Technix has hired 55 local computer experts as phone agents, and a training session is underway. Technical specialists and call center specialists from the United States have flown to India to train the new Indian employees. Hank Patelli, a senior manager of a Technix phone center in Michigan, will oversee the New Delhi phone center for six months until a local manager can be hired and trained to replace him.

-Rajid, one of the Indian employees, asks Hank if the weekend training session could be rescheduled because it is a Hindu festival day. What will be the most likely outcome if Hank agrees to Rajid's request?

A) Rajid will ask for more changes in the schedule because Hank is so agreeable.
B) Hank will develop a relationship of trust and understanding with the Indian employees.
C) Hank's decision will create divisiveness between the American and Indian employees.
D) Rajid will replace Hank as manager after six months when Hank returns to the U.S.

Question 42

Freedom Shoes
Freedom Shoes, a sports shoe company, is considering contracting with an overseas vendor to expand its production capacity. The company investigated several suppliers and found one vendor to be most appealing in terms of cost and manufacturing efficiency. However, Freedom's managers have heard reports that the vendor operates factories with sweatshop conditions.

-Freedom hires a production consultant to help make the decision regarding which overseas supplier to use. The consultant takes an activist perspective on the issue. Which of the following would the activist most likely recommend regarding the vendor in question?

A) Freedom should avoid partnering with suppliers and should make its own products.
B) Freedom should avoid taking investigative action, which would be time-consuming.
C) Freedom should move ahead with the contract, based on price and efficiency alone.
D) Freedom should monitor the vendor's workplace conditions before making a decision.

Question 43

Freedom Shoes
Freedom Shoes, a sports shoe company, is considering contracting with an overseas vendor to expand its production capacity. The company investigated several suppliers and found one vendor to be most appealing in terms of cost and manufacturing efficiency. However, Freedom's managers have heard reports that the vendor operates factories with sweatshop conditions.

-One meeting attendee represents the relativist view regarding ethical standards. She upholds the belief that "When in Rome, do as the Romans do." What perspective does this attendee most likely hold regarding the questionable status of the supplier?

A) Freedom should require its suppliers to uphold universal standards of ethics.
B) Freedom should passively accept the practices that prevail in countries where it does business.
C) Freedom should attempt to correct unethical practices exhibited by its suppliers.
D) Freedom should be selective in which practices it attempts to correct on the part of suppliers.

Question 44

In a short essay, describe the three different cultural orientations - ethnocentric, polycentric and geocentric - and explain why it is important to understand the concepts of socialization and acculturation when considering these orientations.

Question 45

In a short essay, explain the iceberg theory and how these dimensions should be learned.

Question 46

In a short essay, explain the difference between a high-context culture and a low-context culture. Provide examples of how these terms relate to business relationships at the international level.

Question 47

In a short essay, provide an overview of Hofstede's "Four Dimensions of National Culture."

Question 48

What are some of the criticisms of Hofstede's study? In a short essay, discuss the limitations of the study, as well as Hofstede's response to the criticism.

Question 49

In a short essay, explain the difference between a deal-oriented culture and a relationship-oriented culture. Provide examples of each to further illustrate your explanation.

Question 50

In a short essay, how do cultural perceptions of time relate to international business?

Question 51

In a short essay, explain why the perception of personal space varies from culture to culture and provide examples.

Question 52

In a short essay, explain how language affects international business. Consider both communicating to the public and communicating to business associates in your answer.

Question 53

In a short essay, describe the nonverbal characteristics of language.

Question 54

In a short essay, explain three ways that managers can achieve cross-cultural success.

Question 55

In a short essay, describe the behaviors that can be considered corrupt or ethically suspect.

Question 56

What is an ethical dilemma, and what makes ethical dilemmas particularly difficult to resolve? In your essay, include one example of an ethical dilemma that a business manager might face.

Question 57

In a short essay, explain the concept of CSR and describe how it can help promote ethical corporate behavior.

Question 58

In a short essay, describe the relationship between sustainability and corporate social responsibility. How do the two types of practices overlap and reinforce each other?

Question 59

Explain the five different approaches to evaluating ethical dilemmas. If a manager is using the four-step framework to make an ethical decision, when should the five approaches be reviewed?

Question 60

What is a code of ethics, and what role does it serve for businesses? Explain your answer in a short essay.