Question 1

According to experts, stakeholder participation in decision making is effective only in countries with an educated population.

Accepted Answer

Stakeholder participation in decision making is considered effective in various contexts, not just in countries with an educated population. It brings diverse perspectives and can lead to more inclusive, sustainable decisions regardless of the overall education level of a population.

Question 2

What is culture shock? How can an international employer help prevent culture shock and improve the success of expatriates?

Accepted Answer

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Question 3

Ethnocentric firms typically use the same business practices in all cultures and markets.

Accepted Answer

Ethnocentric firms believe that their home country's way of doing business is superior and therefore they often use the same business practices in all cultures and markets. This can result in cultural insensitivity and a lack of adaptation to local market conditions.

Question 4

If an MNE convinced a popular priest that its vitamin-enriched soft drink would benefit parishioners' health, the MNE would be using ________ to help bring about change.

Accepted Answer

An opinion leader is someone who has influence over a group of people and can sway their opinions or behavior. In this scenario, the popular priest is an opinion leader who can encourage his parishioners to consume the MNE's soft drink because he believes it will benefit their health.

Question 5

Organizing work differently to improve productivity will likely fail ________.

Accepted Answer

If the changes interfere with strongly held value systems, it is likely that employees will resist and the productivity improvement effort will fail.

Question 6

What is the difference between a polycentric, ethnocentric, and geocentric approach to international management? What key factors should a firm consider before adopting one of these approaches?

Accepted Answer

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Question 7

Ellen, a U.S.citizen, worked for a U.S.firm in Germany for four years and was transferred back to the firm's home office in Chicago two months ago.Ellen feels significant dissatisfaction with her job and life in Chicago, which is most likely a result of ________.

Accepted Answer

Ellen's dissatisfaction with her job and life in Chicago is likely due to reverse culture shock. Reverse culture shock occurs when individuals experience difficulties readjusting to their home culture after an extended period of time living in a foreign culture. Ellen may have become accustomed to the culture and way of life in Germany, and is now struggling to adapt to the culture in Chicago.

Question 8

A potential problem of polycentrism is failure to introduce innovative superiority.

Accepted Answer

Polycentrism can lead to a lack of cooperation and coordination between different centers, resulting in a failure to introduce innovative superiority. Each center may focus on its own interests and priorities, which could lead to a stagnation of new ideas and approaches.

Question 9

What is the difference between a low-context culture and a high-context culture? How do these differences affect communication in international business dealings?

Accepted Answer

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Question 10

When a company wishes to introduce change in a foreign country, its likelihood of success can most likely be improved by ________.

Accepted Answer

Gaining the support of local opinion leaders can provide a crucial foundation for successful change implementation in a foreign country. These leaders can help reduce resistance, build trust, and facilitate communication between the company and the local population. Introducing many changes simultaneously can overwhelm and confuse local employees and consumers, while making home-country changes in return may not be feasible or necessary. Employing expatriate managers can lead to cultural misunderstandings and may not effectively engage local workers.

Question 11

The approach a company takes when it bases foreign operations on an informed knowledge of its organizational culture along with home- and host-country needs, capabilities, and constraints is called ________.

Accepted Answer

Geocentrism is the approach a company takes when it has a global orientation and bases foreign operations on an informed knowledge of its organizational culture along with home- and host-country needs, capabilities, and constraints. This approach takes into account a global perspective rather than emphasizing the home country's values and norms (ethnocentrism) or the host country's values and norms (polycentrism). Neocentrism is not a commonly used term in international business.

Question 12

Ethnocentrism in international business refers to the ________.

Accepted Answer

Ethnocentrism in international business refers to the belief that what works best at home should work best everywhere. This can lead to a failure to understand and appreciate different cultural norms and values, and can hinder effective business communication and relationships.

Question 13

U.S.companies monopolize much of the international entertainment media, which largely portrays U.S.products and lifestyles as glamorous and appealing.This situation would most likely be used as an example of ________.

Accepted Answer

The situation described is a clear example of cultural imperialism, where a dominant culture (in this case, the United States) spreads its values, beliefs, and products to other parts of the world, often at the expense of local cultures.

Question 14

A firm that concentrates on national cultural differences in terms of averages is more likely to ________.

Accepted Answer

Focusing only on national cultural differences in terms of averages can overlook outliers, which may have a significant impact on market demands and political risks. Therefore, it is important to consider both cultural averages and unique cultural traits.

Question 15

The term "cultural distance" refers to the ________.

Accepted Answer

Cultural distance refers to the degree of difference or dissimilarity between cultures. It includes differences in cultural dimensions such as individualism versus collectivism, power distance, uncertainty avoidance, and masculinity versus femininity.

Quiz 2: The Cultural Environments Facing Business