Deck 5: Culture, Management Style, and Business Systems

Question 1

The business community's defense against payoffs was that they were a way of life throughout the world.

Answer 1

True
Explanation: The issue took on proportions greater than that of nondisclosure because it focused national attention on the basic question of ethics. The business community's defense was that payoffs were a way of life throughout the world: If you didn't pay bribes, you didn't do business.

Question 2

High-context cultures place great importance on the verbal aspects of communication.

Answer 2

False
Explanation: Communication in a high-context culture depends heavily on the contextual (who says it, when it is said, how it is said) or nonverbal aspects of communication, whereas the low-context culture depends more on explicit, verbally expressed communications.

Question 3

Cultural imperatives are business customs that need not be recognized and accommodated.

Answer 3

False
Explanation: Imperatives are business customs that must be recognized and accommodated. Apart from imperatives, business customs can be grouped into electives, customs to which adaptation is helpful but not necessary; and exclusives, customs in which an outsider must not participate.

Question 4

High Power Distance Index countries are more egalitarian than low Power Distance Index countries.

Question 5

Workers in countries higher in individualism show more commitment than workers in countries with lower individualism and higher power distance.

Question 6

Businesspeople in low-context cultures use e-mail more often than those in high-context cultures.

Question 7

In the committee decision setup, every committee member must be convinced of the merits of the proposition or product in question.

Question 8

As businesses grow and professional management develops, there is a shift toward centralized management decision making.

Question 9

Electives are business customs to which adaptation is helpful but not necessary.

Question 10

The strength of a firm's backing is the key to success for both women and men in international business.

Question 11

The three typical decision-making patterns are top-level management decisions, decentralized decisions, and committee or group decisions.

Question 12

For most U.S. managers, judgment and intuition are the only basis for making decisions.

Question 13

Polychronic time is characterized by "a great involvement with people."

Question 14

The majority of business customs fit into the cultural elective category.

Question 15

The treatment local women receive in their own cultures is a clear indicator of how a foreign businesswoman will be treated.

Question 16

We are less likely to evaluate a person's behavior in terms of what is familiar to us because we use our self-reference criterion (SRC).

Question 17

The notion that competition is crucial for efficiency, improvement, and regeneration is fundamental to Western management practices.

Question 18

The idea of wide sharing in decision making is consistent with the views that one controls one's own destiny and that business advancement is based on merit.

Question 19

Adaptation requires business executives to forsake their ways and change to local customs.

Question 20

Most high-context cultures operate on monochronic time.

Question 21

Which of the following is true of adaptation in international marketing?

A) Willingness to adapt is a crucial attitude in international marketing.
B) Adaptation requires business executives to forsake their ways and change to local customs.
C) Mere acknowledgement and not tolerance of alien cultures is sufficient in international marketing.
D) Open tolerance is considered to be an unnecessary concession to foreign cultures.
E) Empathy for foreign cultures may lead to cultural discord.

Question 22

It is not possible to obtain measures of linguistic distance for every country and every person.

Question 23

Which of the following is a criterion for adaptation when dealing with individuals, firms, or authorities in foreign countries?

A) Ability to resist varying tempos
B) Zero tolerance
C) Hypersensitivity
D) Flexibility
E) Lack of curiosity

Question 24

Which of the following would most likely be characterized as being an imperative business custom in many cultures?

A) Establishing friendships
B) Knowing to speak and write the native language
C) Adhering to local food habits
D) Conforming to the native religions
E) Having knowledge of the local sport

Question 25

Simon Peters, a senior manager at Celise Export Logistics, goes to France to negotiate a deal with the company's French partners. He dresses casually in a t-shirt and jeans. His French counterparts call off the meeting and accuse him of taking a casual attitude toward negotiations. In this scenario, dressing formally during business meetings is probably a cultural _____ for the French.

A) imperative
B) elective
C) exclusive
D) oddity
E) rarity

Question 26

High-context cultures score high on power distance and low on individualism.

Question 27

The distinction between bribery and extortion depends on whether the activity resulted from an offer or from a demand for payment.

Question 28

The most managerially useful aspect of the synthesis of cultural differences is that it allows us to make predictions about unfamiliar cultures.

Question 29

Business customs to which adaptation is helpful but not necessary are called _____.

A) imperatives
B) electives
C) exclusives
D) individualistic axioms
E) standardized axioms

Question 30

Lubrication involves a request for officials to turn their heads, to not do their jobs, or to break the law.

Question 31

Chinese cultures are high on Power Distance Index and low on Individualism/Collective Index.

Question 32

Business customs that must be recognized and accommodated are called _____.

A) imperatives
B) electives
C) exclusives
D) exceptionals
E) constraints

Question 33

Betty Roberts became an embarrassment to her company when she joked about the ruling monarchy in England in front of a group of visiting English businesspeople. She should have known that political ridicule by a foreigner is rarely accepted. Ms. Roberts has violated what is known as a cultural _____.

A) imperative
B) elective
C) exclusive
D) intelligence
E) standard

Question 34

Business customs in which an outsider must not participate are called _____.

A) imperatives
B) electives
C) exclusives
D) absolutes
E) statutes

Question 35

A distinguishing characteristic of the type of capitalism common in Chinese culture is the emphasis on guanxi as the coordinating principle among firms.

Question 36

_____ are the business customs and expectations that must be met and conformed to or avoided if relationships are to be successful.

A) Cultural exclusives
B) Business truism
C) Global protocols
D) Business axioms
E) Cultural imperatives

Question 37

In the less individualistic cultures, labor and management are generally hostile.

Question 38

Business customs can be grouped into:

A) rigid, flexible, and negotiables.
B) internals, externals, and consensual customs.
C) imperatives, electives, and exclusives.
D) national, foreign, and international.
E) unilateral, bilateral, and multilateral.

Question 39

Utilitarian ethics is the ethical principle that focuses on the optimization of the "common good."

Question 40

Subornation payments accompany requests for a person to do a job more rapidly or more efficiently.

Question 41

Fredrick Keeble, an American manager, took his Swiss client out for a traditional American dinner. The client did not seem to eat much. After dinner, he asked his client if he had enjoyed the dinner. Which of the following responses would indicate that the client comes from a low-context culture?

A) No, I did not like the food.
B) Yes, but it was a little too oily.
C) No, dinner was good but I have an upset tummy.
D) Yes, it was lovely, thanks.
E) Yes, unfortunately I was not very hungry.

Question 42

As businesses grow and professional management develops, there is a shift toward:

A) authoritarian decision making.
B) decentralized management decision making.
C) hit-or-miss decision making.
D) tentative decision making.
E) experimental decision making.

Question 43

Which of the following issues looms large in individualistic cultures?

A) Issue of fairness in opportunity
B) Issue of attaining efficiency through reduced transaction cost
C) Issue of lack of physical appeal of individualistic employees
D) Issue of decision making being highly centralized
E) Issue of lack of ecological concerns

Question 44

There is a very strong belief in the United States that business decisions must be supported and based on accurate and relevant information. Which of the following best describes this approach?

A) "Master of destiny" viewpoint
B) Independent enterprise as the instrument of social action
C) Decisions based on objective analysis
D) Wide sharing in decision making
E) Reward based on merit

Question 45

Research has shown that commitment of workers to their companies tended to be higher in countries:

A) higher in individualism and lower in power distance.
B) higher in collectivism and lower in individualism.
C) lower in individualism and higher in power distance.
D) higher in power distance and higher in individualism.
E) higher in collectivism and higher in power distance.

Question 46

Which of the following aspects of communication is more important in a low-context culture?

A) Explicit communication
B) Nonverbal communication
C) Contextual communication
D) Face-to-face communication
E) Gesture-based communication

Question 47

Which of the following forms of business decision making is predominant in most Asian countries?

A) Independent decision making
B) Contractual decision making
C) Authoritarian decision making
D) Group decision making
E) Dictatorial decision making

Question 48

Which of the following is consistent with the American view of the independent enterprise?

A) A corporation should fall under the control of the state government.
B) A corporation is an entity that has rules and continuity of existence.
C) The largest proportion of a corporation's profits must go to the personal funds of the stakeholders.
D) A corporation's employees must be selected on the basis of seniority and not merit.
E) Personal relationships are more important in daily life than work and the company.

Question 49

Which of the following could be the least acceptable behavior in a business setting, especially in a cross-cultural scenario?

A) Correcting someone in public
B) Staying away from greeting another man with a kiss (a custom in some countries)
C) Refusing to eat foods that disagree with one's palate
D) Refusing to drink alcoholic beverages for personal reasons
E) Not raising one's voice in an argument

Question 50

Adam Smith in his The Wealth of Nations stated, "By pursuing his own interest he frequently promotes that of the society more effectually than when he really intended to promote it." What behavior does this notion attempt to justify?

A) Collectivism
B) Loyalty
C) Welfare mentality
D) Competitiveness
E) Cooperation

Question 51

According to the high-context/low-context continuum identified by Edward T. Hall, communication in a low-context culture depends on:

A) the context.
B) who says it.
C) when it is said.
D) how it is said.
E) the verbal expression.

Question 52

A characteristic of committee decision making is that:

A) it is only found in small businesses.
B) the committees always operate on a decentralized basis.
C) it is based on rank and hierarchy.
D) it is rarely employed in Asian countries.
E) it is by group or consensus.

Question 53

The notion that _____ is crucial for efficiency, improvement, and regeneration is fundamental to Western management practices.

A) insolvency
B) procrastination
C) liquidation
D) competition
E) complacency

Question 54

In _____ decision making, participation by middle management tends to be deemphasized.

A) democratic
B) diffused management
C) decentralized management
D) nonhierarchical
E) top-level management

Question 55

In _____ decision making, title or position generally takes precedence over the individual holding the job.

A) committee
B) decentralized
C) top-level management
D) integrated
E) dictatorial

Question 56

Which philosophical view of the U.S. management recognizes that people influence the future to a large extent and that they control their own fates?

A) Independent enterprise as the instrument of social action
B) Wide sharing in decision making
C) "Master of destiny" viewpoint
D) Natural selection theory
E) Competition produces efficiency

Question 57

Companies in the _____ countries have a strong paternalistic orientation, and assume that individuals will work for one company for the majority of their lives.

A) more hierarchical
B) more egalitarian
C) more individualistic
D) low Uncertainty Avoidance Index
E) more democratic

Question 58

According to Max Weber, at least part of the standard of living in the United States today can be attributed to the:

A) hard-working Protestant ethic.
B) artificially low price of gasoline.
C) Pearl harbor incident.
D) American black population.
E) slave-labor that formed the basis for early industry.

Question 59

In the context of management objectives and aspirations, which of the following is true of an employee's personal life?

A) Max Weber held that some non-U.S. cultures emphasized profit over personal life.
B) Japanese work ethics are derived from the belief in paranormal events.
C) Ancient Greek thought considered work to be a desirable factor in one's life.
D) To the Japanese, personal life is company life.
E) McClelland opined that the standard of living enjoyed by an employee in the United States originated from the hard-working Protestant ethic.

Question 60

Which of the following views is consistent with normative U.S. cultural concepts?

A) Decision making should always be on an experimental basis.
B) Rewards must be based on recommendations and personal ties.
C) Strength and power of those in command takes precedence over improvement.
D) Independent enterprise is an instrument for social action.
E) Competition leads to reduction in business efficiency.

Question 61

Which of the following time systems typify western cultures like most North Americans, Swiss, Germans, and Scandinavians and causes them to concentrate on one thing at a time?

A) Polychronic time
B) Bimodal time
C) Dual time
D) Monochronic time
E) Monotheistic time

Question 62

Which of the following is true of the effect of differences in culture in business negotiations?

A) The basic elements of business negotiations differ from country to country.
B) The risk of misunderstanding increases when negotiating with someone from a different culture.
C) The possibility of misinterpretation is decreased when one uses one's self-reference criterion.
D) A standard rule in negotiating is to know your counterpart first.
E) It is important that the self-reference criteria of both business parties surface during business talks.

Question 63

Which of the following is true of the business community's view about payoffs?

A) The decision to pay a bribe indicated that the business house had large monetary resources at its disposal.
B) During the 1970s, the United States had strict laws against paying bribes in foreign countries.
C) Payoffs are not acceptable means even if it is for business profitability and necessity.
D) Payoffs are restricted to the multinational companies headquartered in the United States.
E) Many global competitors perceive payoffs as a necessary means to accomplish business goals.

Question 64

People in Brazil describe themselves as late arrivers, allow greater flexibility in defining early and late, are less concerned about being late, and are more likely to blame external factors for their delay. Which system of time do the Brazilian people most likely operate on?

A) Polychronic
B) Monochromatic
C) Monotheistic
D) Monochronic
E) Sequence

Question 65

Academic studies of the causes and consequences of bribery, conducted by Transparency International (TI), indicate corruption is greater in:

A) high income nations.
B) democratic rather than communist nations.
C) countries with high individualism.
D) countries with low Power Distance Index.
E) collectivistic nations.

Question 66

Which of the following is true of P-time and M-time?

A) The American desire to get down to business is a manifestation of a P-time culture as contrary to Japan's M-time approach.
B) The M-time system gives rise to looser time schedules, unlike P-time.
C) M-time is characterized by the simultaneous occurrence of many things, unlike P-time.
D) As global markets expand, more businesspeople from P-time cultures are adapting to M-time.
E) Contrary to P-time businesspeople, interruptions are routine for M-time businesspeople.

Question 67

_____ occurs when payments are extracted under duress by someone in authority from a person seeking only what he or she is lawfully entitled to.

A) Extortion
B) Subornation
C) Lubrication
D) Perjury
E) Bribery

Question 68

In the context of business ethics, many people in sub-Saharan Africa view Western _____ as a kind of exploitation that prevents treatment of AIDS for millions.

A) medical missionaries
B) grants-in-aid
C) R-rated movies
D) intellectual property laws
E) lower trade tariffs

Question 69

France is higher on Hofstede's Power Distance Index (PDI) than the United States and formality still reigns in France. Which of the following American business practices would be most unacceptable to the French?

A) Slipping in colloquial French words during business meetings
B) Trying to emulate the French way of business thinking
C) Showing enthusiasm at business negotiations
D) Using first names in business encounters
E) Exhibiting stubbornness while negotiating

Question 70

Which of the following organizations conducts an international survey of businesspeople, political analysts, and the general public on corruption and compiles the Corruption Perception Index (CPI)?

A) Organization of American States (OAS).
B) Amnesty International.
C) Oxfam International.
D) Transparency International (TI).
E) CARE International.

Question 71

_____ is more dominant in high-context cultures, where the completion of a human transaction is emphasized more than holding to schedules.

A) Polychronic time
B) Exponential time
C) Polynomial time
D) Monochronic time
E) Sequence time

Question 72

Which of the following is the best and most feasible means of solving the problem of language on the Internet?

A) Using minimal to no language on websites instead of using graphics and diagrams to convey messages
B) Using language translation software to translate communication in all languages
C) Having country-specific websites so that everyone can communicate in their own language
D) Using foreign language blocking software to screen international communications
E) Training employees to virally communicate in all languages used by foreign customers

Question 73

Rick, a customer relations manager with a leading multinational firm, manages various operations and deals with numerous domestic and international clients every day. Despite his hectic schedule, Rick never cuts a meeting short with anyone and frequently postpones subsequent meetings in order to devote ample time to each of his clients. Which of the following countries is Rick most likely to be from?

A) Japan
B) Switzerland
C) The United States
D) Germany
E) France

Question 74

_____ is probably the most common mistake of North Americans attempting to trade in the Middle East.

A) Accepting drinks when offered
B) Interacting informally
C) Exhibiting steadfastness
D) Attempting to speak the local language
E) Dressing casually

Question 75

When compared to people operating on P-time, people operating on M-time:

A) follow looser time schedules.
B) are more deeply involved with individuals.
C) are not bound by deadlines and time schedules.
D) are more likely to blame external factors for their lateness.
E) tend to concentrate on one thing at a time.

Question 76

Which of the following best explains the low percentage of women chosen for international assignments in the United States?

A) The role of women as homemakers and caregivers does not allow for international assignments.
B) Men are generally more interested to take up international assignments than women.
C) Prejudice faced by American women executives in foreign, male-dominated societies is exaggerated.
D) There is a widespread belief that traditional roles of women in male-dominated societies precludes women from being successful in these societies.
E) Expenses involved in sending an unmarried women executive abroad are far higher than the expenses incurred in sending a married man with family.

Question 77

Which aspect of Japanese culture, predicted by many to favor bribery, makes Japan's success in reducing corruption more remarkable?

A) Relationship-orientation
B) Mechanistic inclination
C) Patriarchal nature
D) Information-orientation
E) Task orientation

Question 78

A firm whose marketing orientation is based on the belief that consumers and businesses alike will not buy enough without prodding is _____ oriented.

A) distribution
B) buying
C) production
D) time
E) selling

Question 79

In the context of business ethics, which of the following factors majorly kept the American economy afloat at the turn of the century?

A) Missionaries and religious movements
B) Cultural homogenization
C) Rampant consumerism
D) Closed nature of the economy
E) Market speculators

Question 80

Which of the following is true of the findings of Transparency International's Corruption Perception Index (CPI)?

A) Lower levels of bribery have been found in nations with a communist past.
B) Higher levels of bribery have been found in low-power distance nations.
C) Higher levels of bribery have been found in low-income nations.
D) Lower levels of bribery have been found in collectivistic cultures.
E) Lower levels of bribery have been found in poor nations.