Deck 5: The Cultural Environment

Question 1

Power distance examines the extent to which societies tolerate risk or are risk averse.

Answer 1

False

Question 2

Inwa means that groups at the top of the social pyramid exert a great deal of control over others at lower levels of the pyramid.

Answer 2

False

Question 3

Of the following, which is NOT a charcteristic of culture that is important for global companies to recognize?

A) Culture is learned, not inherited.
B) It is nearly impossible to change an entire country's culture.
C) It is the responsibility of the global firm to ascertain the level of importance of various aspects of culture in the foreign markets it serves.
D) Companies' operations, cheifly marketing and management, need to recognize and adjust to the cultural environment existing in the countries the global company serves.
E) Culture can be imposed from home country to host country.

Answer 3

E

Question 4

The level of education must be such that high-tech products can be accepted because the market knows how to use them.

Question 5

In Kuwait, weekends are Monday and Tuesday, not Saturday and Sunday as they are in most Western nations.

Question 6

Mexican business executives who buy business-to-business products from U.S. suppliers indicate that "knowledge of the mexican culture" and "enthusiasm" were the most important cutural variables determining from which supplier they purchased. this example of which of the four charecteristics of culture which is important for global companies to recognize?

A) Culture is larned, not inherited.
B) It is nearly impossible to change an entire county's culture.
C) It is the responsibility of the global firm to ascertain the level of importance of various aspects of culture in the foreign markets it serves.
D) Companies' operations, chiefly marketing and management, need to recognize and adjust to the cultural environment existing in the countries the global company serves.
E) Culture is inherited, not learned.

Question 7

Research studies find that culture is not learned; rather it is inherited.

Question 8

In ____ translation, a message is translated from English to another language, then someone skilled in that foreign language translates it back into English; this second translation can then be compared to the original English version.

A) vertical
B) horizontal
C) forward
D) backward
E) diagonal

Question 9

Mexican negotiators will frequently engage in long periods of silence, or may have peripheral discussions among one another while ignoring foreign business people in the room.

Question 10

Verbal and non-verbal communication are the two primary types of language.

Question 11

Which of the following statements about culture is NOT true?

A) It is a concept that is relaively easy to define.
B) There are many different components of culture.
C) Culture involves how a group of people behave, what they value and appreciate, and many other aspects.
D) There are four charecteristics of culture.
E) Culture is learned, not inherited.

Question 12

According to the GLOBE Project, the lowest level of instituional collectivism existed for the Anglo group.

Question 13

______ communication refers to tone of voice, gestures, eye contact, body positions, facial grimaces, and other body language that accompanies verbal communication.

A) Verbal
B) Nonverbal
C) Informal
D) Formal
E) Backward

Question 14

Latin Americans are not as conscious about time as are North Americans.

Question 15

Guanxi refers to the relationship between subordinates and superiors. It denotes friendship among unequals involving unlimited exchanges of favors; thus, it is not based upon sentiment.

Question 16

Hofstede's masculine vs. feminine dimension is the extent to which a society values traditionally masculine attributes (assertiveness, competition)or traditionally feminine ones (modesty, caring for others).

Question 17

In Arab countries, business executives will often digress from the primary purpose of the meeting, then eventually return to the topic initially discussed.

Question 18

The primary reason why language mistakes occur in global business is that organizations tend to use backward translation.

Question 19

When doing business in Russia, it is not appropriate to look directly into the eyes of your Russian hosts.

Question 20

The U.S. Department of Commerce Country Commercial Guide provides cultural information for 133 countries.

Question 21

Of the following, which dimension identified by Hofstede refers to the level of egalitarianism in a society?

A) Individualism vs. collectivism
B) Power distance
C) Masculine vs. feminine
D) Uncertainty avoidance
E) Internal control vs. external control

Question 22

According to the GLOBE Project research, _____ has emerged as the group that was the most in favor of uncertainty avoidance.

A) Germanic Europe
B) Southern Asia
C) Eastern Europe
D) the Arabic group
E) Latin Europe

Question 23

Of the following, which is NOT a primary or secondary source that can be used to learn about foreign countries' cultures?

A) The U.S. Department of Commerce Commercial Guide
B) The Economist's Intelligence Unit
C) Culture Grams
D) Craigshead's International Business, Travel and Relocation Guide to 84 Countries
E) Forbes's Countries of the World

Question 24

_____ refers to the way a society does things.

A) Values
B) Attitudes
C) Manners and customs
D) Stances
E) Outlooks

Question 25

Which of the following is NOT one of the nine cultural variables researched by the GLOBE Project?

A) Power distance
B) Uncertainty avoidance
C) Humane orientation
D) Performance orientation
E) Emotionality

Question 26

_____ infrastructure refers to housing, medical services, and educational institutions.

A) Material
B) Technological
C) Social
D) Financial
E) Economic

Question 27

Of the following, which provides cultural information for 133 countries?

A) The U.S. Department of Commerce Commercial Guide
B) The Economist's Intelligence Unit
C) Culture Grams
D) Craigshead's International Business, Travel and Relocation Guide to 84 Countries
E) Forbes's Countries of the World

Question 28

Of the following, which is NOT true reguarding religion as a cultural aspect?

A) In Muslim countries, American companies cannot antcipate employing women because they are not encouraged to work outside the home.
B) Different religions observe different holidays.
C) Jews observe a number of annual holidays, including Purim, Passover, and Hanukkah.
D) In Kuwait, weekends are Saturday and Sunday.
E) Jews and Muslims are prohibited from eating pork.

Question 29

_____ refers to the way people in a society relate to one another within group settings.

A) Material culture
B) Aesthetics
C) Social institution
D) Stratification
E) Intangible culture

Question 30

In China, consumers drink soup, which usually contains rice, and do not use a spoon. In Muslim countries, it would be inappropriate to bring a gift for another man's wife. These are example of cultural_____.

A) value
B) attitude
C) manners and customs
D) stance
E) outlook

Question 31

The extent to which groups at the top of the social pyramid exert control over others at the lower levers of the pyramid is referred to as _____.

A) material culture
B) aesthetics
C) a social institution
D) social stratification
E) intangible culture

Question 32

The color black in the United States indicates mourning, but in Japan white is the color of mourning. Green is an acceptable color in Muslim countries; all flags of those countries contain green. These are examples of which of the following?

A) Material culture
B) Aesthetics
C) Social institutions
D) Stratification
E) Intangible culture

Question 33

In Country A, proposed change is viewed with suspicion - especially if it is suggested by foreigners. This is an example of a cultural _____.

A) value
B) attitude
C) manners and customs
D) stance
E) outlook

Question 34

Of the following, which is NOT a cultural aspect of doing business in Korea?

A) The number 1 is good, whereas the number 4 signifies death.
B) Business card etiquette is the most important aspect of closing the deal.
C) Younger brothers and sisters are not allowed to use the names of their older siblings.
D) "Yangban" refers to the noble class.
E) Children are not supposed to say their parents' names, even when used with a title.

Question 35

According to the GLOBE Project research, _____ was ranked first on power distance.

A) Germanic Europe
B) Southern Asia
C) Eastern Europe
D) the Arabic group
E) Latin Europe

Question 36

Of the following, which dimension identified by Hofstede refers to the extent to which societies tolerate risk or are risk averse?

A) Individualism vs. collectivism
B) Power distance
C) Masculine vs. feminine
D) Uncertainty avoidance
E) Internal control vs. external control

Question 37

In some countries, a high premium is placed upon foreigners and foreign items, as they are associated with sophistication -French wines, for example, or Swedish automobiles. In other countries, there is subtle resistance to foreign items. This is an example of a cultural _____.

A) value
B) attitude
C) manners and custom
D) stance
E) outlook

Question 38

Of the following, which is NOT true regarding Hofstede's cultural dimensions?

A) Japan and Mexico are highly collectivistic.
B) Australia and the United States are high power distance countries.
C) Japan, Greece, and Belgium have been described as highly masculine cultures.
D) Finland and Sweden are less tolerant of risk than Portugal and Brazil.
E) China and Japan have much longer time horizons than do most Western nations.

Question 39

In Arab countries, business executives will often digress from the primary purpose of the meeting, then eventually return to the topic initially discussed. This is an example of a cultural _____.

A) value
B) attitude
C) manners and customs
D) stance
E) outlook

Question 40

Of the following, which is NOT a cultural level identified by Hofstede?

A) Individualism vs. collectivism
B) Power distance
C) Masculine vs. feminine
D) Uncertainty avoidance
E) Internal control vs. external control

Question 41

The extent to which a society values traditionally masculine attributes (assertiveness, competition)or traditionally feminine ones (modesty, caring for others)is known as the ________ dimension.

Question 42

When doing business in _____, it is important to understand that potential customers want to develop a personal relationship before doing business with foreign executives. Dinner exchanges and lunch meetings provide a good time for executives to get to know one another better. Dinners most often occur in the late evening, at 9 or 10pm.

A) China
B) Japan
C) Korea
D) Latin America
E) Arab countries

Question 43

The ______ variable refers to the degree to which a society compartmentalizes roles.

Question 44

The cultural dimension that refers to extent to which a society emphasizes short-run or long-run time horizons is know as ______.

Question 45

Of the following, which is NOT a cultural aspect of doing business in Korea?

A) The number 1 is good, whereas the number 4 signifies death.
B) Avoid sitting so that the sole of one's shoe is shown.
C) Younger brothers and sisters are not allowed to use the names of their older siblings.
D) "We" is more important than "I."
E) Children are not supposed to say their parents' names, even when used with a title.

Question 46

________is the cultural dimension that refers to egalitarianism (equality)versus authority.

Question 47

Of the following, which dimension identified by Hofstede refers to the extent to which a society minimizes gender inequality?

A) Time orientation
B) Power distance
C) Masculine vs. feminine
D) Uncertainty avoidance
E) Internal control vs. external control

Question 48

________ refers to learned behavior; a way of life for one group of people living in a single, related and independent community.

Question 49

_____refers to a Chinese philosophy examining the relationship between subordinates and supervisors. It denotes friendship among unequals involving unlimited exchanges of favors.

A) Guanxi
B) Inwa
C) Yangban
D) Stratification
E) Aesthetics

Question 50

The ability of a firm to adjust to a culture different from it own is referred to as _________.

Question 51

In ______, teachers are so revered that walking in their shadows is viewed as impolite.

A) Latin America
B) Korea
C) Russia
D) Arab countries
E) India

Question 52

Guanxi is a term utilized in _____.

A) China
B) Japan
C) Korea
D) Latin America
E) Arab Countries

Question 53

_______dimension refers to the extent to which societies tolerate risk or are risk averse.

Question 54

Of the following, which dimension identified by Hofstede refers to the extent to which a society emphasizes short-run or long-run time horizons?

A) Time orientation
B) Power distance
C) Masculine vs. feminine
D) Uncertainty avoidance
E) Internal control vs. external control

Question 55

The extent to which a society expresses itself emotionally is defined by Hofstede as ________variable.

Question 56

________ is Trompenaar's cultural variable that refers to the importance of rules versus relationships.

Question 57

Of the following, which is NOT true about managing and marketing in overseas markets?

A) Only one management style need be used.
B) There can be different cultural groups within countries of which organizations need to be aware.
C) Advertising campaigns must be tailored to local cultures.
D) Culture has an impact on communication styles.
E) Clear communication can improves the outcomes of management decisions.

Question 58

Inwa is a term utilized in _____.

A) China
B) Japan
C) Korea
D) Latin America
E) Arab Countries

Question 59

The ________ cultral dimension involves the worth of the individual versus the worth of the groups of which that person is a member ("me versus the group").

Question 60

_____refers to a Korean philosophy stressing harmony among unequals, loyalty to parents and authority figures, and superiors being responsible for the well-being of subordinates.

A) Guanxi
B) Inwa
C) Yangban
D) Stratification
E) Aesthetics

Question 61

Scenario - The Sandman Group
The Sandman Group is a multinational pharmaceutical business, which provides needed medications to a variety of foreign markets around the globe. It has recently acquired a new customer that is based in Saudi Arabia. This area of the world is new to the company. Sandman plans to send ten representatives and managers to the Saudi region to better serve this new client's needs. The company feels confident in its products and its people and believes strongly they will be able to accommodate the needs of this client.
The Sandman Group realizes the business must be able to adjust to the vastly different Saudi culture quickly in order to retain this new client. Which of the following best describes what the Sandman Group needs to accomplish?

A) Proliferation
B) Ascription
C) Acculturation
D) Guanxi
E) Social stratification

Question 62

Scenario - Reardon Enterprises
Reardon Enterprises was founded in 1985 by Jonas and Samuel Reardon. Initially this company was based solely in Santa Fe, New Mexico and sold products only in the U.S. market. Now, this organization has grown to become fifth in the fine glassware industry in the world. It proudly claims the distinction of having 14 manufacturing facilities located on foreign soil. It currently provides its delicate and refined glass products to 24 foreign marketplaces around the world.
Samuel continues to work in the field and feels his expertise in foreign relations is a large part of the reason the company has known such global success. While Jonas contends the factories and workers located on foreign soil should not be treated differently from those in Santa Fe, Samuel contends it is important to know how the other countries operate. Even with the differences in business philosophies and beliefs between the two owners, Reardon Enterprises remains a multi-billion dollar operation with a glistening future ahead of it.
Samuel is quite knowledgeable about the foreign cultures where Reardon Enterprises conducts its operations. He understands the vital characteristics surrounding a country's culture. Which one of the following is not one of these characteristics?

A) Culture is learned through associations and family.
B) A company's marketing and management must adjust and adapt to the culture of the foreign marketplace.
C) Culture is not dynamic and changes slowly over a long period of time.
D) Companies have the responsibility to understand what is valued and accepted in the foreign marketplace.
E) Culture is inherited from others living within the society.

Question 63

Briefly describe the four characteristics of culture important for global companies.

Question 64

Scenario - Reardon Enterprises
Reardon Enterprises was founded in 1985 by Jonas and Samuel Reardon. Initially this company was based solely in Santa Fe, New Mexico and sold products only in the U.S. market. Now, this organization has grown to become fifth in the fine glassware industry in the world. It proudly claims the distinction of having 14 manufacturing facilities located on foreign soil. It currently provides its delicate and refined glass products to 24 foreign marketplaces around the world.
Samuel continues to work in the field and feels his expertise in foreign relations is a large part of the reason the company has known such global success. While Jonas contends the factories and workers located on foreign soil should not be treated differently from those in Santa Fe, Samuel contends it is important to know how the other countries operate. Even with the differences in business philosophies and beliefs between the two owners, Reardon Enterprises remains a multi-billion dollar operation with a glistening future ahead of it.
Jonas has decided that Samuel makes a valid point when he states the importance of knowing the culture of the foreign country in which they wish to conduct business. Jonas has decided to learn as much as he can about the culture of Japan in order to be better prepared for the company's business endeavor there. Which of the following would not be a valued source of information about foreign cultures?

A) U.S. Department of the Interior
B) Discussion with individuals who have worked in Japan
C) Craigshead's International Business
D) Doing Business in 118 Countries by Price Waterhouse Cooper
E) Country Report from the Economist

Question 65

"______" is the Korean philosophy that involves harmony among unequals: loyalty is owed to parents and authority figures, yet superiors are responsible for the well-being of their subordinates.

Question 66

Scenario - The Sandman Group
The Sandman Group is a multinational pharmaceutical business, which provides needed medications to a variety of foreign markets around the globe. It has recently acquired a new customer that is based in Saudi Arabia. This area of the world is new to the company. Sandman plans to send ten representatives and managers to the Saudi region to better serve this new client's needs. The company feels confident in its products and its people and believes strongly they will be able to accommodate the needs of this client.
The Sandman Group is determined to be successful in its business dealings with its newest Saudi customer. It has been working diligently with the ten representatives and managers it plans to send into the region. Sandman wants each one to be well versed in the culture of the region before they depart on their assignment. Which one of the following would not be of high concern for those individuals to learn before leaving the United States?

A) Effective verbal communication skills
B) Awareness of non-verbal language and its meanings
C) Food for eating must be prepared in the halal way
D) Financial infrastructure of the region
E) Knowledge of the value system of the region

Question 67

Scenario - Reardon Enterprises
Reardon Enterprises was founded in 1985 by Jonas and Samuel Reardon. Initially this company was based solely in Santa Fe, New Mexico and sold products only in the U.S. market. Now, this organization has grown to become fifth in the fine glassware industry in the world. It proudly claims the distinction of having 14 manufacturing facilities located on foreign soil. It currently provides its delicate and refined glass products to 24 foreign marketplaces around the world.
Samuel continues to work in the field and feels his expertise in foreign relations is a large part of the reason the company has known such global success. While Jonas contends the factories and workers located on foreign soil should not be treated differently from those in Santa Fe, Samuel contends it is important to know how the other countries operate. Even with the differences in business philosophies and beliefs between the two owners, Reardon Enterprises remains a multi-billion dollar operation with a glistening future ahead of it.
Reardon Enterprises has its second largest manufacturing facility located in South America. Which one of the following would not be an important cultural fact Samuel and Jonas should know before conducting business meetings there?

A) Formal manners and attire are valued at dinner business meetings
B) Business dealings must be discussed first and decisions made quickly
C) Development of a personal relationship should come before conducting business
D) Time is not an essential entity in that culture for it is believed there is always tomorrow
E) Dinner meetings are considered a time to get to know those who would be doing business together

Question 68

Differentiate between the cultural dimensions of doing business in Korea and China.

Question 69

The _________ variable refers to how rewards in a society are handed out.

Question 70

Trompenaars builds upon work of Hofstede's research. Describe the added cultural dimensions of Trompenaars using country examples for each.

Question 71

Describe five dimensions of Hofstede's research using country examples for each.

Question 72

Scenario - The Sandman Group
The Sandman Group is a multinational pharmaceutical business, which provides needed medications to a variety of foreign markets around the globe. It has recently acquired a new customer that is based in Saudi Arabia. This area of the world is new to the company. Sandman plans to send ten representatives and managers to the Saudi region to better serve this new client's needs. The company feels confident in its products and its people and believes strongly they will be able to accommodate the needs of this client.
The representatives of Sandman must be aware of cultural do's and don'ts of the Saudi Arabia region. Which one of the following would be considered unacceptable or inappropriate for them to do during a business meeting?

A) Maintaining good posture.
B) Not inquiring about the wives of foreign businessmen.
C) Not overly praising the possessions of the Arab host.
D) Not bringing a woman to the meeting without first seeking the host's approval.
E) Sitting with the sole of the shoe showing.

Question 73

The Chinese philosophy that denotes friendship among unequals involving unlimited exchanges of favors; thus, it is not based upon sentiment is referred to as "_____".

Question 74

Briefly describe any four elements of culture. Provide an example of each.

Question 75

Compare and contrast the cultural dimensions of Hofstede's research and the GLOBE project.

Question 76

Describe the cultural dimensions of doing business in Japan.

Question 77

Explain why culture is important in global marketing.