Deck 5: Managing Across Cultures

Question 1

Russians view contracts as binding only if they continue to be mutually beneficial.

Answer 1

True
Explanation: Russians view contracts as binding only if they continue to be mutually beneficial.

Question 2

In some cases, both the product and the marketing message are similar worldwide; this is particularly true for high-end products.

Answer 2

True
Explanation: In some cases, both the product and the marketing message are similar worldwide. This is particularly true for high-end products, where the lifestyles and expectations of the market niche are similar regardless of the country.

Question 3

Firms with a polycentric predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.

Answer 3

True
Explanation: Firms with a polycentric predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.

Question 4

A major cultural difference between the PRC and many Western countries is the issue of time.

Question 5

Renault made a number of strategic decisions that dramatically changed the way it did business, such as building a factory in Brazil to produce its successful Megane sedan.

Question 6

Samsung outsources the majority of its production processes.

Question 7

Americans may admire or be fascinated with people who disagree with them; in contrast, the French are more attracted to those who agree with them.

Question 8

In Japan, compensation levels are determined by using skill, ability, and performance.

Question 9

In America, authority is diffused throughout the bureaucratic system and personal responsibility is hard to pin down.

Question 10

In Japan, people often are hired based on what they can do for the firm in the short run, because many of them eventually will quit or be downsized.

Question 11

An ethnocentric predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis.

Question 12

A company with a geocentric predisposition tries to integrate a global systems approach to decision making.

Question 13

The difficulty of managing global organizations, as in the case of some local subsidiaries that want more decentralization and others that want less is one of the factors helping to facilitate the need for MNCs to develop unique strategies for different cultures.

Question 14

Many U.S.and European multinationals find that doing business in the PRC can be a long, grueling process that often results in failure.

Question 15

The cultural differences of Samsung and Apple highlight how, within the same industry, two companies can achieve similar levels of success despite opposing strategies.

Question 16

In Japan, unions are regarded as adversaries of management; in the United States, unions and managers are seen as partners.

Question 17

When internationalization began to gain momentum, there was a hope that many of the procedures and strategies that worked so well at home could be adopted overseas without modification.

Question 18

Advertising in the United States should be indirect and subtle, emphasizing group references, shared responsibility and interpersonal trust.

Question 19

Manufacturing internally has given Apple the ability to maintain oversight of its employee's wages and hours, allowing the company to largely avoid public relations nightmares and accusations of human rights violations.

Question 20

A firm with an ethnocentric predisposition may find it difficult to implement a geocentric strategy, because it is unaccustomed to using global integration.

Question 21

Unlike Apple, Samsung:

A)Offers one product line and depends on a loyal customer base
B)Outsources the majority of its production processes
C)Finds it difficult to respond rapidly to other companies' innovations
D)Offers a wide array of products at multiple price points

Question 22

Which of the following is likely to be the strategic predisposition of a company that has a "top-down" system of governance?

A)Regiocentric
B)Globalcentric
C)Ethnocentric
D)Geocentric

Question 23

Firms with a _____ predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.

A)Polycentric
B)Globalcentric
C)Regiocentric
D)Geocentric

Question 24

Research reveals that far from addressing regional differentiation issues, many MNCs are committed to a(n) _____, which is a belief that one worldwide approach to doing business is the key to both efficiency and effectiveness.

A)International complacency
B)Globalization imperative
C)Worldwide indifference
D)Cross-cultural contentment

Question 25

A(n) _____ predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis.

A)Geocentric
B)Globalcentric
C)Ethnocentric
D)Regiocentric

Question 26

Advertising in _____ is predominantly emotional, dramatic and symbolic.

A)Japan
B)China
C)Germany
D)France

Question 27

A company with a(n) _____ predisposition allows the values and interests of the parent company to guide the strategic decisions.

A)Polycentric
B)Geocentric
C)Ethnocentric
D)Regiocentric

Question 28

Which of the following correctly matches a firm's predisposition with its culture?

A)Polycentric-home-country
B)Geocentric-global
C)Regiocentric-host-country
D)Ethnocentric-regional

Question 29

Four distinct predispositions, which help determine the specific steps an MNC will follow, are:

A)Ethnocentric, polycentric, regiocentric and geocentric
B)Intercentric, polycentric, regiocentric and network centric
C)Globalcentric, networkcentric, geocentric and polycentric
D)Geocentric, intercentric, extracentric, ethnocentric

Question 30

In which of the following countries are spots viewed as cultural events and reviewed as if they were literature or films?

A)India
B)China
C)Germany
D)France

Question 31

Which of the following correctly matches a firm's predisposition with its strategy?

A)Ethnocentric-global integration and national responsiveness
B)Polycentric-national responsiveness
C)Regiocentric-global integration
D)Geocentric-regional integration and national responsiveness

Question 32

All of the following factors facilitate the need for international firms to develop unique strategies for different cultures except:

A)The importance of being an insider, as in the case of customers who prefer to "buy local"
B)The need to allow subsidiaries to use their own abilities and talents and not be restrained by headquarters
C)The diversity of worldwide industry standards such as those in broadcasting, where television sets must be manufactured on a country-by-country basis
D)A continual demand by local customers for global products and in the case of globally recognized products such as McDonald's hamburgers and Sony televisions

Question 33

According to the text, value can be added to the marketing approach by carefully tailoring the advertising message to the particular culture.Therefore, advertising in China should:

A)Emphasize group references and interpersonal trust
B)Be expressive and direct
C)Target individual achievement
D)Emphasize individual over shared responsibility

Question 34

Which of the following countries prefer advertising that is factual and rational?

A)India
B)China
C)Germany
D)France

Question 35

An MNC with an ethnocentric predisposition:

A)Redistributes profits globally
B)Redistributes profits within the region
C)Takes back its profits to its home country
D)Retains profits in the host country

Question 36

If businesspeople in ______ commit themselves to a date in the future and fail to show up, they feel no guilt or concern because they believe they have no control over time in the first place.

A)Great Britain
B)Arab countries
C)France
D)China

Question 37

The companies constituting 50 percent of the global market share in the smartphone industry are:

A)Apple and HTC
B)Sony and Apple
C)Samsung and Huawei
D)Apple and Samsung

Question 38

_____ is the tendency to view the world through one's own eyes and perspectives.

A)Parochialism
B)Symbolism
C)Nationalism
D)Simplification

Question 39

The typical broad, self-deprecating _____ commercial amuses by mocking both the advertiser and consumer.

A)British
B)Chinese
C)Japanese
D)French

Question 40

_____ can be a difficult problem for many international managers, who often come from advanced economies and believe that their state-of-the-art knowledge is more than adequate to handle the challenges of doing business in less developed countries.

A)Nationalism
B)Ethnocentrism
C)Parochialism
D)Symbolism

Question 41

In Great Britain, Ireland, and the United States, managers value their individualism and are motivated by all of the following opportunities except:

A)Earnings
B)Profit-sharing plans
C)Advancement
D)Recognition

Question 42

Identify the country in which Shell's operating company prioritized the HAIRL appraisal system by putting Leadership at the top of the list and Helicopter at the bottom.

A)Netherlands
B)Germany
C)France
D)Britain

Question 43

The five criteria in the acronym HAIRL stands for:

A)Helicopter, analysis, imagination, reality and leadership
B)Hierarchy, awareness, ingenuity, reverie and leadership
C)Helicopter, action, interest, reality and leadership
D)Hierarchy, action, ingenuity, reverie and leadership

Question 44

In regard to the cultural dimension, "What is the person's relationship to other people?" the dominant characteristic for American managers is:

A)Hierarchic
B)Collectivist
C)Communal
D)Individualist

Question 45

Which of the following selections accurately reflects compensation practices in China?

A)Use technical training as reward; recognize egalitarian values; and use "more work more pay" with caution
B)Consider all aspects of labor costs
C)Note high labor costs for manufacturing
D)Use recognition and praise as motivator; avoid pay for performance

Question 46

Malaysia has what is called a _____.

A)Moderate-context culture
B)Low-context culture
C)Variable-context culture
D)High-context culture

Question 47

Which of the following selections accurately reflects labor relations in China?

A)Treat unions as partners; allow time for negotiations
B)Tap large pool of labor cities; lax labor laws may become more stringent
C)Understand changing Chinese labor law; prepare for increasing unionization of labor
D)Be prepared for high wages and short work week; expect high productivity from unionized workers

Question 48

All of the following are characteristics of low-context cultures except:

A)Messages are explicit, and people are taught to say what they mean
B)Insiders and outsiders are easily distinguishable and outsiders typically do not gain entrance to the inner group
C)Agreements tend to be in writing rather than spoken
D)Deep personal involvement with others is not valued greatly

Question 49

The People's Republic of China had a long tradition of isolation until Deng Xiaoping opened his country to the world in:

A)1947
B)1989
C)1932
D)1979

Question 50

Which of the following selections accurately reflects recruitment and selection processes in Japan?

A)Recent public policy shifts encourage use of sophisticated selection procedures
B)Use of expatriates sparingly; recruit home country nationals at U.S. colleges
C)Obtain skilled labor from government subsidized apprenticeship program
D)Prepare for a long process; ensure that your firm is "here to stay"; and develop trusting relationship with recruits

Question 51

In China, the term guanxi means:

A)Technical competence
B)Good connections
C)Punctuality
D)Business partnership

Question 52

If a U.S.manager acted the same way with a British manager as he/she does with a Chinese manager, the U.S.manager will be exhibiting a behavioral process referred to as:

A)Simplification
B)Parochialism
C)Ethnocentrism
D)Symbolism

Question 53

In practice, guanxi resembles:

A)Nepotism
B)Individualism
C)Commercialism
D)Parochialism

Question 54

In regard to the cultural dimension, "What is the conception of space?" the dominant characteristic for American managers is:

A)Private
B)Mixed
C)Shared
D)Public

Question 55

Experienced travelers report that the primary criterion for doing business in China is:

A)Persuasive top management
B)Savvy marketing
C)Technical competence
D)Hard currency

Question 56

Which of the following does not pertain to similarities in managerial activities in the United States and Korea?

A)As organizational size increased, commitment proportionally increased
B)As structure became more employee-focused, commitment increased
C)The more positive the perceptions of organizational climate, the greater the employee commitment
D)As in the U.S. studies, Korean employees' position in the hierarchy, tenure in their current position and age all related to organizational commitment

Question 57

The United States has what is called a _____.

A)Moderate-context culture
B)Low-context culture
C)Variable-context culture
D)High-context culture

Question 58

All of the following are characteristics of the Malaysian culture except:

A)Relationships between people are relatively short-lived and individuals tend to not feel a deep personal involvement with each other
B)Communication often is implicit and individuals are taught from an early age to interpret these messages accurately
C)People in authority are personally responsible for the actions of their subordinates and this places a premium on loyalty to both superiors and subordinates
D)Agreements tend to be spoken rather than written

Question 59

Which of the following selections accurately reflects labor relations in Germany?

A)Treat unions as partners; allow time for negotiations
B)Tap large pool of labor cities; lax labor laws may become more stringent
C)Be prepared for high wages and short work week; expect high productivity from unionized workers
D)Understand changing German labor law; prepare for increasing unionization of labor

Question 60

Which of the following selections accurately reflects recruitment and selection processes in Mexico?

A)Recent public policy shifts encourage use of sophisticated selection procedures
B)Use of expatriates sparingly; recruit home country nationals at U.S. colleges
C)Obtain skilled labor from government subsidized apprenticeship program
D)Prepare for a long process; ensure that your firm is "here to stay"; and develop trusting relationship with recruits

Question 61

Many in the United States believe that it is more difficult to get along with the _____ than with other Europeans.

A)Germans
B)Austrians
C)Spanish
D)French

Question 62

The word namaste means "greetings to you" in:

A)China
B)Japan
C)India
D)Russia

Question 63

_____ like exclusive arrangements and often negotiate with just one firm at a time.

A)Americans
B)Russians
C)The British
D)Canadians

Question 64

An important cultural contrast between Arabs and Americans is that of emotion and logic.Arabs often act based on _____; in contrast, those in an Anglo culture are taught to act on _____.

A)Emotion; logic
B)Logic; emotion
C)Reasoning; empathy
D)Aptitude; excitement

Question 65

Which of the following are behavioral practices that affect doing business in China?

A)The Chinese appreciate loud, boisterous behavior and when speaking to each other, they maintain a greater physical distance than is typical in the West
B)The Chinese are proud of their economic accomplishments and want to share these feelings with outsiders
C)The Chinese society is one in which individualism is highly prized
D)The Chinese are much more animated than Westerners

Question 66

Most French organizations tend to be:

A)Highly centralized and have rigid structures
B)Highly decentralized and have lose structures
C)Highly centralized and have lose structures
D)Highly decentralized and have rigid structures

Question 67

Identify an incorrect statement about doing business in Arab countries.

A)The person in charge of a group has the right to take credit for the group's efforts
B)Connections are extremely important in conducting business
C)Important decisions usually are made in person, not by correspondence or telephone
D)Patience is critical to the success of business transactions

Question 68

Describe the differences between the four strategic dispositions.What is the principle advantage of each disposition?

Question 69

Which of the following is a traditional behavior of Chinese businesspeople?

A)The Chinese never use intermediaries for negotiating business deals
B)If the Chinese give concessions, they do not expect anything in return
C)The Chinese are quick in formulating a plan of action
D)The Chinese place values and principles above money and expediency

Question 70

When doing business in India, all of the following behaviors are appropriate except:

A)Being "fashionably late" for meetings
B)Avoiding personal questions unless the other individual is a friend or close associate
C)Addressing doctors or professors in accordance with their titles
D)Refraining from public displays of affection

Question 71

Describe the difference between parochialism and simplification.

Question 72

Discuss the cultural highlights to be kept in mind regarding the French while doing business in France.

Question 73

In _____, one's social class is very important and these classes include the aristocracy, the upper bourgeoisie, the upper-middle bourgeoisie, the middle, the lower middle and the lower.

A)India
B)Great Britain
C)France
D)The United States

Question 74

What guidelines should MNCs must be aware of while doing business in China?

Question 75

What guidelines have to be followed by MNCs in order to tap the potential business opportunities in Russia?