Deck 4: The Cultural Environment of International Business

Question 1

In cultures with a monochronic view of time, people view time as linear, managers make commitments, set deadlines, and adhere to a strict schedule of meetings and activities.

Answer 1

True

Question 2

An ethnocentric orientation positively impacts the ability of managers to manage business projects and new business practices abroad.

Answer 2

False

Question 3

In deal-oriented cultures, managers focus on the task at hand and prefer getting down to business.

Answer 3

True

Question 4

Businesses based in societies characterized by high uncertainty avoidance encourage managers to take risks and make quick decisions.

Question 5

Language is a vital dimension that both reflects, and is reflected by, cultural differences.

Question 6

Most companies have a distinctive set of norms, values, and modes of behavior that distinguish them from other organizations.

Question 7

Culture refers to the inherited attitudinal traits of an individual.

Question 8

Ethnocentric orientation refers to a host-country mind-set in which the manager develops a strong affinity with the country in which she or he conducts business.

Question 9

Cross-cultural risk is often intensified by managers with geocentric tendencies.

Question 10

In societies with low uncertainty-avoidance, companies emphasize stable careers and produce many rules to regulate worker actions and minimize ambiguity.

Question 11

Company logos, trademarks, national flags, and historical monuments are considered symbolic productions.

Question 12

A cultural metaphor is a generalization about a group of people that may or may not be factual.

Question 13

Cultural values and attitudes can be transmitted through a variety of sources including parents, teachers, friends, government leaders, movies, television, and the Internet.

Question 14

Language has both verbal and nonverbal characteristics.

Question 15

Nonverbal communication belongs to the deep cultural makeup that we are unaware of.

Question 16

English is the most common primary language in the world.

Question 17

Technological advances are a key determinant of culture and cultural change.

Question 18

Business jargon unique to a culture can impede communication.

Question 19

Japan and China are examples of low-context cultures.

Question 20

In collectivist societies, competition for resources is the norm, and those who compete best are rewarded financially.

Question 21

Ethnocentric assumptions lead to poor business strategies in both planning and execution.

Question 22

Jordan is employed in an American investment firm and is currently working with some Japanese clients on a new project. He uses a lot of hand gestures during meetings which his clients find very distracting and rude. This has also led to many misunderstandings between Jordan and his Japanese clients in the recent past. Which of the following best describes such a situation?

A) risk aversion
B) organizational anarchy
C) cross-cultural risk
D) acculturation

Question 23

Cultural differences necessitate adapting marketing activities to suit the specific needs of target markets.

Question 24

Cross-cultural proficiency cannot be obtained from reading books or befriending natives in one's own country.

Question 25

The greater the cultural distance between the service provider and its customers, the less likely there will be cognitive and communication gaps.

Question 26

Culture is not ________.

A) about beliefs and values of society
B) relative
C) a collective phenomenon
D) inherited

Question 27

Socialization is defined as ________.

A) the process of segregating people into different racial groups in a society
B) the process of adjusting and adapting to a culture other than one's own
C) the process of learning the rules and behavioral patterns appropriate to one's given society
D) a situation or event in which a cultural misunderstanding puts some human value at stake

Question 28

Cross-cultural proficiency is characterized by four key personality traits: tolerance for ambiguity, perceptiveness, valuing personal relationships, and flexibility and adaptability.

Question 29

Acculturation is defined as the process of ________.

A) segregating ethnic minorities by distinct groups
B) adjusting and adapting to a culture other than one's own
C) learning the behavioral patterns and rules of one's own society
D) forcing minority cultures to adopt the values of the dominant culture

Question 30

Polycentric orientation refers to ________.

A) a host-country mind-set in which the manager develops a strong affinity with the country in which she or he conducts business
B) the use of one's own culture as the standard for judging other cultures
C) a collectivist mind-set, which emphasizes conformity, duty, prescribed roles, and sacrifice for the greater good
D) the tendency to rely on elaborate verbal explanations, putting much emphasis on spoken words

Question 31

Cultural intelligence focuses on specific capabilities important for high-quality personal relationships and effectiveness in culturally diverse settings and work groups.

Question 32

In the advanced economies, firms that engage in services such as lodging and retailing account for a much lesser share of FDI than firms that manufacture products.

Question 33

________ refers to the learned, shared, and enduring orientation patterns in a society.

A) Ethnicity
B) Heritage
C) Culture
D) Race

Question 34

In companies with decentralized organizational structure, power is concentrated at the regional or corporate headquarters.

Question 35

Communications, information, and transportation technologies have decreased people's ability to learn about and connect with unfamiliar cultures.

Question 36

As part of opening manufacturing units abroad, a U.S. apparel firm decided to send its apparel production coordinator Chris to Bangladesh. Chris is distressed that people don't come to meetings on time and finds it disrespectful when his team members stand too close to him. Chris may trigger a cross-cultural risk by a(n) ________.

A) ethnocentric orientation
B) anthropocentric orientation
C) polycentric orientation
D) geocentric orientation

Question 37

Using one's own culture as a standard for judging other cultures is known as ________.

A) anthropocentric orientation
B) ethnocentric orientation
C) geocentric orientation
D) polycentric orientation

Question 38

Which of the following situations is an example of geocentric orientation?

A) Marsha, CEO of QST Solutions, believes that top level executives at her company should be Americans to avoid any communication gaps.
B) The Gram Group of retail stores decided to open branches in China and focus on changing their policies to suit the Chinese population to maximize profits.
C) Derek, the VP of Banner Technologies, wants managers from the firm's India office to visit the U.S. branch to provide training to American officials visiting India.
D) Chill&Break Inc., an American global coffee company, is used to judging other cultures by the standards of its own culture.

Question 39

Globalization brings a wider menu of choices to consumers and increases diversity within society.

Question 40

Which of the following is true with regard to culture?

A) It captures how the members of the society live.
B) It is absolute.
C) It does not define the collective behavior of each society.
D) It is inherited.

Question 41

Feminine cultures tend to emphasize ________.

A) interdependence among people
B) accumulation of wealth
C) ambition
D) competitiveness

Question 42

With regard to the iceberg concept of culture, ________ is the most deeply embedded.

A) conversational patterns
B) cooking
C) courtship practices
D) literature

Question 43

Firms with high power distance are most likely to be characterized by ________.

A) concentrated power among executives and little autonomy for subordinates
B) an equal distribution of power among executives, managers, and lower-level employees
C) minimal gap between the powerful and the weak
D) a highly flexible work environment

Question 44

Values in a culture ________.

A) represent the symbolic, material, and creative productions unique to a society
B) are rigidly held attitudes, usually unfavorable and usually aimed at particular groups of people
C) represent a person's judgments about what is good or bad, acceptable or unacceptable, important or unimportant, and normal or abnormal
D) are similar to opinions but are often unconsciously held and may not have a rational basis

Question 45

Which of the following managers portrays high uncertainty avoidance?

A) Greg manages the market development fund team for a leading computer manufacturing firm. He is entrepreneurial and makes decisions quickly under tough situations.
B) James is the business head of marketing in a leading automobile manufacturing company. He coaches his team members to become accustomed to risk and organizational change.
C) Henry is the managing editor at Paes publications. He emphasizes slow decision making, and is prone to investigate the nature and potential outcomes of several options.
D) David manages the technical team at TR Solutions. He is open to different opinions from team members and is not threatened by differing opinions.

Question 46

Business dealings in low-context cultures are characterized by ________.

A) a high degree of sensitivity to the context
B) a high degree of mutual respect
C) efficient negotiations
D) complex rituals

Question 47

The subjective dimension of culture includes ________.

A) manners and customs
B) architecture of a society
C) tools
D) infrastructure unique to a society

Question 48

Which of the following is true about low-context cultures?

A) People belonging to low-context cultures do not prefer explicit communications.
B) Low-context cultures emphasize an indirect and polite face-saving style of communication.
C) Low-context cultures rely on elaborate verbal explanations, putting much emphasis on spoken words.
D) People belonging to low-context cultures view communication as a means to promote smooth, harmonious relationships.

Question 49

Prejudices in a culture ________.

A) represent the symbolic, material, and creative productions unique to a society
B) are rigidly held attitudes, usually unfavorable, and usually aimed at particular groups of people
C) guide the development of our attitudes and preferences
D) represent a person's judgment about what is important and what is not

Question 50

Low-context cultures tend to ________.

A) emphasize nonverbal messages
B) conduct negotiations as efficiently as possible
C) view communication as a means to promote smooth, harmonious relationships
D) prefer an indirect and polite face-saving style of communication

Question 51

________ refers to a distinctive tradition or institution strongly associated with a particular society.

A) Cultural metaphor
B) Totem
C) Moiety
D) Cultural pluralism

Question 52

An "emic" analysis of culture ________.

A) aims to be scientific and culturally neutral
B) describes culture from the perspective of an outside observer
C) compares the culture to others and explains it in unbiased, objective terms
D) describes behavior in terms meaningful to a person functioning within the culture

Question 53

Which of the following countries exhibit a high-context culture?

A) Japan
B) Germany
C) The United States of America
D) Switzerland

Question 54

An idiom ________.

A) refers to the objective analysis of a situation
B) refers to the perception about someone or something that may or may not be true
C) is a highly ambiguous rhetoric device used in high-context cultures
D) is an expression whose symbolic meaning is different from its literal meaning

Question 55

Which of the following countries is an example of a strongly collectivist society?

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

Question 56

High power-distance countries are characterized by ________.

A) organizations that grant a high degree of autonomy to lower-level employees
B) a strong desire to minimize gaps between the powerful and the weak
C) a relative indifference toward social inequalities
D) a relative equality in terms of income and power

Question 57

Titania is a country characterized by a high-context culture. This implies that ________.

A) the people of Titania tend to conduct negotiations as efficiently as possible
B) the people of Titania tend to use legalistic contracts to conclude agreements
C) business is primarily deal-oriented in Titania
D) personal relations and goodwill are valued in Titania

Question 58

The objective dimension of culture includes ________.

A) values and attitudes
B) architecture of a society
C) perceptions of time
D) religion

Question 59

Which of the following refers to the extent to which people can tolerate risk in their lives?

A) uncertainty avoidance
B) long-term versus short-term orientation
C) power distance
D) individualism

Question 60

Which of the following is characteristic of collectivist societies?

A) In collectivist societies, each person tends to focus on his or her own self-interest.
B) In collectivist societies, compromise and conformity help maintain group harmony.
C) In collectivist societies, ties among people are relatively loose.
D) In collectivist societies, those who compete best are rewarded financially.

Question 61

The culture of which of the following countries has a close conversational distance?

A) Russia
B) Sweden
C) Brazil
D) United States

Question 62

Restaurant Chain Internationalization (Scenario)
The British restaurant chain, Winchester Fish & Chips (WFC), is considering the idea of opening a restaurant in Sweden. The president of WFC believes worldwide demand for fish & chips is growing and that Sweden could be a profitable market in which the firm could internationalize. WFC executives are in the process of gathering information in preparation for a board meeting in which a vote will be taken on the plan to open a restaurant in Sweden.
Which of the following is necessary for WFC's management to evaluate in deciding whether it should open a restaurant in Sweden?

A) How successful has WFC been in Britain?
B) What style of food do Swedes typically enjoy eating?
C) Are Swedish firms typically averse to expand their businesses abroad?
D) Are British firms typically averse to expand their businesses abroad?

Question 63

Japanese Supercenter (Scenario)
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, if true, most supports the decision to operate the Tokyo store in a manner similar to Tag-Mart stores in the U.S.?

A) Customer service is of utmost importance to local shoppers.
B) Finding efficient and knowledgeable employees in Tokyo is difficult.
C) Other supercenter stores in Tokyo have gone out of business in the last year.
D) Local shoppers desire both efficiency and low prices.

Question 64

What has been the impact of technology and the Internet on global culture?

A) Cultures have become increasingly similar due to shared experiences.
B) The distance between geographically separated cultures are growing steadily.
C) Since the last decade, homogeneous cultures have grown in number.
D) People in today's developing nations are no more vulnerable to culture shock than before.

Question 65

Which of the following is true about globalization's effect on culture?

A) It segregates people on the basis of race and ethnicity.
B) It decreases diversity within a society by blocking the free flow of cultural ideas.
C) It liberates people culturally by undermining the ideological conformity of nationalism.
D) It decreases the choices available to local people by making their countries culturally poor.

Question 66

Japanese Supercenter (Scenario)
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) Sato is familiar with both Tag-Mart operations as well as the local customs in Japan.
B) Sato is no more skilled in employee training techniques than Aoki.
C) Sato is clearly more relationship-oriented than Aoki.
D) Sato is likely to discourage homogenization of cultures.

Question 67

Subjective dimensions of culture (Scenario)
In the last two years, the sales of consumer electronics in China have risen by 9.4 percent. Moreover, the market is becoming increasingly competitive since a large number of Japanese, European, and American manufacturers are building factories to face the competition from low-cost Chinese manufacturers. Grande Co. is a U.S.-based consumer electronics manufacturer that has been negotiating with Chinese authorities for eight years to open a factory in the country. Since Grande has spent significant time and energy on negotiation in the past eight years, they should quit and set up a factory in a more responsive society.
Which of the following can be inferred from the above passage?

A) The Chinese culture is more likely than not to be deal-oriented.
B) The Chinese culture is more likely than not to be relationship-oriented.
C) The American culture is more likely than not to be relationship-oriented.
D) The American culture is less likely to take an impersonal approach to business.

Question 68

Advertising themes often convey unfavorable and embarrassing interpretations. This is most likely because ________.

A) popular slogans used in international advertising do not use idiomatic expressions
B) advertising themes often lose their original meaning in translation
C) language is rarely subtle
D) colloquial expressions are more likely than not to puzzle native speakers

Question 69

________ is a major factor in the emergence of a common worldwide culture.

A) The ethnocentric orientation of today's managers
B) Globalization
C) The global preference for relationship-oriented cultures
D) Marginalization

Question 70

In polychronic cultures, ________.

A) members are easily distracted and are inclined to do many tasks at once
B) people view time as linear and punctuality as a virtue
C) managers make commitments, set deadlines, and adhere to a strict schedule of meetings and activities
D) managers and investors are impatient and want quick returns

Question 71

Which of the following situations is an example of the effect of globalization on culture?

A) Burqas and hijabs are commonly worn by women in Islamic societies.
B) Hinduism is a major religion in India.
C) Pizzas sold in the U.S. are often piled high with meat.
D) English tends to dominate cross-cultural commerce.

Question 72

Restaurant Chain Internationalization (Scenario)
The British restaurant chain, Winchester Fish & Chips (WFC), is considering the idea of opening a restaurant in Sweden. The president of WFC believes worldwide demand for fish & chips is growing and that Sweden could be a profitable market in which the firm could internationalize. WFC executives are in the process of gathering information in preparation for a board meeting in which a vote will be taken on the plan to open a restaurant in Sweden.
Which of the following would be the most important to evaluate before WFC internationalizes its operations?

A) Has the increased presence of British culture in North America popularized fish & chips in that region?
B) Has global homogenization increased the likelihood that Swedes will try food from a different culture?
C) To what extent does globalization facilitate creativity and innovation?
D) Is increased global communications a truly positive aspect of globalization?

Question 73

Subjective dimensions of culture (Scenario)
In the last two years, the sales of consumer electronics in China have risen by 9.4 percent. Moreover, the market is becoming increasingly competitive since a large number of Japanese, European, and American manufacturers are building factories to face the competition from low-cost Chinese manufacturers. Grande Co. is a U.S.-based consumer electronics manufacturer that has been negotiating with Chinese authorities for eight years to open a factory in the country. Since Grande has spent significant time and energy on negotiation in the past eight years, they should quit and set up a factory in a more responsive society.
Which of the following, if true, strengthens the conclusion of the above passage?

A) In China, companies belonging to deal-oriented cultures have been the most successful.
B) American companies best thrive in cultures that are deal-oriented.
C) For the Chinese, relationship is less important than business deals.
D) The management of Grande is characterized by a host country mind-set.

Question 74

In much of the world, ________ tends to dominate cross-national commerce.

A) Mandarin
B) Arabic
C) German
D) English

Question 75

In a deal-oriented culture, managers ________.

A) focus on the task at hand and prefer getting down to business
B) hold rigid attitudes, usually unfavorable and usually aimed at particular groups of people
C) emphasize affiliations with people
D) seek to build trust and rapport and get to know the other party in business interactions

Question 76

________ are letters, figures, colors, or other characters that communicate a meaning.

A) Rituals
B) Symbols
C) Norms
D) Customs

Question 77

Subjective dimensions of culture (Scenario)
In the last two years, the sales of consumer electronics in China have risen by 9.4 percent. Moreover, the market is becoming increasingly competitive since a large number of Japanese, European, and American manufacturers are building factories to face the competition from low-cost Chinese manufacturers. Grande Co. is a U.S.-based consumer electronics manufacturer that has been negotiating with Chinese authorities for eight years to open a factory in the country. Since Grande has spent significant time and energy on negotiation in the past eight years, they should quit and set up a factory in a more responsive society.
Which of the following is true about language?

A) Language does not entail facial expressions and gestures.
B) National languages, dialects, and translation facilitate straightforward communication.
C) Language has both verbal and nonverbal characteristics.
D) Business jargons are common across cultures.

Question 78

Japanese Supercenter (Scenario)
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 is most important for Tag-Mart's top management to determine while making a choice between Sato and Aoki as the new 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) Would customers at the Tokyo Tag-Mart prefer strong customer service or a U.S.-style shopping experience?
D) What is the average age and annual income of Tokyo Tag-Mart shoppers?

Question 79

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

A) enable people to cope with their environments
B) help unite people
C) distinguish the dominant culture from minority cultures
D) segregate people based on race and ethnicity

Question 80

Restaurant Chain Internationalization (Scenario)
The British restaurant chain, Winchester Fish & Chips (WFC), is considering the idea of opening a restaurant in Sweden. The president of WFC believes worldwide demand for fish & chips is growing and that Sweden could be a profitable market in which the firm could internationalize. WFC executives are in the process of gathering information in preparation for a board meeting in which a vote will be taken on the plan to open a restaurant in Sweden.
Which of the following, if true, best supports WFC's decision of entering the Swedish market?

A) The demand for fish & chips has grown steadily in the U.K. over the past few years.
B) In Sweden, restaurants selling fish & chips are no more popular than those that do not.
C) By boosting worldwide demand, globalization has incentivized business expansion.
D) Globalization encourages creativity and diversity in the workplace.