Deck 5: Culture, Management Style, and Business Systems

Question 1

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

Answer 1

True
Explanation: Cultural electives relate to areas of behavior or to customs that cultural aliens may wish to conform to or participate in but that are not required. The majority of customs fit into this category.

Question 2

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

Answer 2

False
Explanation: As businesses grow and professional management develops, there is a shift toward decentralized management decision making.

Question 3

Most high-context cultures operate on M-time.

Answer 3

False
Explanation: M-time, or monochronic time, typifies most North Americans, Swiss, Germans, and Scandinavians. Most low-context cultures operate on M-time.

Question 4

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

Question 5

High-PDI countries are more egalitarian than low-PDI countries.

Question 6

Imperatives are generally universal across cultures.

Question 7

Cultural electives are business customs in which an outsider must not participate.

Question 8

Business people in low-context cultures use email more often than those in high-context cultures.

Question 9

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

Question 10

Owing to rampant prevalence across the world and because of cultural variations on its definitions, bribery is now being increasingly considered a way of business life.

Question 11

Because of the self-reference criterion (SRC), we are less likely to evaluate that person's behavior in terms of what is familiar to us.

Question 12

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

Question 13

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

Question 14

Compared to low-context cultures, high-context cultures place great importance on the words used to express thoughts.

Question 15

P-time is characterized by "a great involvement with people."

Question 16

Competition as a motivating factor is the practice most fundamental to Western management.

Question 17

For most U.S. managers, judgment and intuition are the most important tools for making decisions.

Question 18

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

Question 19

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

Question 20

Wide sharing of decision making is consistent with the ideas of "master of destiny" and merit system of recognition popular in U.S. organizational philosophy.

Question 21

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

A) Establishing friendships
B) Speaking the language
C) Understanding the native religions
D) Drinking the local drinks
E) Having a knowledge of trading law

Question 22

There are many different views regarding the most important ideas on which normative U.S. cultural concepts are based. All of the following are generally accepted as acceptable ideas with this respect EXCEPT:

A) "Master of destiny" viewpoint.
B) independent enterprise as the instrument of social action.
C) wide sharing in decision-making.
D) the collective good outweighs the individual gain.
E) competition yields efficiency.

Question 23

Betty Roberts became an embarrassment to her company when she joked about the ruling monarchy in England before a group of visiting English businessmen and women. Betty 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) landmark.
E) standard.

Question 24

Which of the following would be the best description of the "master of destiny" philosophy that is fundamental to U.S. management thought?

A) A skill that must be mastered is foretelling one's destiny.
B) A manager must control all employees' destinies if profit is to be made.
C) People can substantially influence the future--they are in control of their own future.
D) The "state" is the master of its citizens' destiny.
E) Society is the determining element or factor of one's destiny.

Question 25

There is a very strong belief in the United States that business decisions (and the managers that make these decisions) should be based on a scientific approach and made from a non-emotional posture. Which of the following terms best describes this approach?

A) Master of destiny
B) Independent enterprise
C) Objective analysis
D) Wide sharing in decision-making
E) Never-ending quest for improvement

Question 26

With respect to business customs, customs in which the outsider must not participate are called:

A) imperatives.
B) electives.
C) exclusives.
D) non-traditional.
E) standardized.

Question 27

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 28

Which of the following is NOT true of adaptation in international marketing?

A) Adaptation requires business executives to forsake their ways and change to local customs.
B) Executives must be willing to accommodate differences that can cause misunderstandings.
C) Essential to effective adaptation is awareness of one's own culture.
D) Marketers must recognize that differences in others' culture could lead to misunderstanding of the host's intentions.
E) The self-reference criterion (SRC) is especially operative in business customs.

Question 29

Utilitarian ethics is the ethical principle that focuses on the optimization of the common good.
Utilitarian ethics: Does the action optimize the "common good" or benefits of all constituencies? And who are the pertinent constituencies?
Rights of the parties: Does the action respect the rights of the individuals involved?
Justice or fairness: Does the action respect the canons of justice or fairness to all parties involved?

Question 30

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

Question 31

With respect to business customs, customs to which adaptation is helpful, but not necessary are called:

A) imperatives.
B) electives.
C) exclusives.
D) non-traditional.
E) standardized.

Question 32

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

A) Functional imperatives
B) Business imperatives
C) Global axioms
D) Universal axioms
E) Cultural imperatives

Question 33

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

Question 34

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

Question 35

As a guide to adaptation, all of the following criteria would be appropriate EXCEPT:

A) open to tolerance.
B) flexibility.
C) humility.
D) profit motive.
E) awareness.

Question 36

Simon Peters is very conscious of his behavior as he greets prospective Japanese clients at a local Tokyo restaurant. Though he invites all of the guests to drink sake from lacquered trays, he abstains because of a severe stomach ulcer. He perceives his abstention to be permissible in Japanese society because drinking sake would be considered to be a cultural _____ for foreign guests.

A) imperative
B) elective
C) exclusive
D) non-tradition
E) standard

Question 37

A liking for others, open to tolerance, flexibility, and ability to adjust to varying tempos would all be criteria for achieving _____ in international marketing.

A) profit perception
B) adaptation
C) standardization
D) correlation
E) individualization

Question 38

In more collectivistic cultures, labor-management relations is adversarial.

Question 39

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 your palate
D) Refusing to drink alcoholic beverages
E) Opting not to dance along with the crowd

Question 40

With respect to business customs, customs that must be recognized and accommodated are called:

A) imperatives.
B) electives.
C) exclusives.
D) non-traditional.
E) standardized.

Question 41

Adam Smith in his 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." Which of the following notions is most closely associated with this view as stated by Adam Smith?

A) Master of destiny
B) Caveat emptor
C) Greed is good
D) The invisible hand
E) Survival of the fittest

Question 42

Which of the following is the distinguishing characteristic of committee decision making?

A) Decision making is centralized.
B) Decision making is decentralized.
C) Decision making follows a bottom-up approach.
D) Decision making is done by upper management.
E) Decision making is by consensus.

Question 43

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

A) the historical hard-working Protestant ethic.
B) the (artificially) low price of gasoline.
C) the near complete penetration of the Internet.
D) the leveling of statuses brought about by the American business class.
E) the slave-labor that formed the basis for early industry.

Question 44

According to the high-context/low-context continuum identified by Edward Hall, communication in a high-context culture depends heavily on all of the following EXCEPT:

A) the explicit content.
B) who says it.
C) when it is said.
D) how it is said.
E) nonverbal aspects.

Question 45

Personal security and job mobility relate directly to basic human motivation. Assume that you wanted to work for a company that had a strong paternalistic orientation and would probably employ you for your entire life. In which of the following countries would you find that the majority of companies would follow the employment model you have described?

A) France
B) United States
C) Canada
D) England
E) Switzerland

Question 46

Which of the following forms of business decision-making characterizes most Asian countries?

A) Independent
B) Contractual
C) Dual
D) Consensus
E) Dictatorial

Question 47

For international marketers operating in authoritative and delegated societies, the chief problem is:

A) paying sufficient bribes to the right people.
B) identifying the individual with authority.
C) coming to consensus with the group dynamic.
D) convincing each member of the decision-making group.
E) address the decision-maker by correct title.

Question 48

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

A) depends heavily on the contextual.
B) depends on who says it.
C) depends on when it is said.
D) depends how it is said.
E) depends on explicit communications.

Question 49

In _____ countries, subordinates are not likely to contradict bosses, but in _____ countries, they often do.

A) low collectivism; low PDI
B) low PDI; high individualism
C) high-PDI; low-PDI
D) high individualism; high collectivism
E) high-PDI; low individualism

Question 50

In a low-context explicit communication culture one would expect to find that verbal exactness in communication dominates other communication variables. Which of the following countries has been described as being low context explicit with respect to communication practices?

A) Switzerland
B) Japan
C) Saudi Arabia
D) England
E) Italy

Question 51

Which of the following firms is most likely to practice top-level management decision making?

A) A team of sales professionals working as a unit to achieve set targets
B) A winery owned and run by the owner-manager family
C) A franchise of an international engineering firm
D) A hospital formed by service-minded doctors
E) A web content development company run by professionals with industry experience

Question 52

Research has shown that commitment of workers to their companies tended to be higher in countries _____ and ____.

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

Question 53

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

A) dilution of standards in decision making.
B) decentralized management decision making.
C) centralized decision making.
D) concentration of authority.
E) laissez-faire management.

Question 54

What explains the fact that group decision making predominates in Asian cultures?

A) Asian leaders consider themselves benevolent and inclusive leaders.
B) Asian cultures lack sufficient aggressiveness for bold individual decision making.
C) Most Asian cultures and religions emphasize harmony and collectivism.
D) Most Asian countries lack expert professionals capable of bold decision making.
E) Ownership, if things go wrong, is distributed amongst all decision makers.

Question 55

In the article titled "The Silent Language of Overseas Business," Edward T. Hall describes the symbolic meanings of all of the following EXCEPT:

A) time.
B) space.
C) expressions.
D) friendships.
E) agreements.

Question 56

Which of the following is NOT consistent with the American view on the independent enterprise?

A) The independent enterprise is an instrument for social action.
B) A corporation is an entity that has continuity of existence.
C) A corporation is a separate and vital social institution.
D) Strong feelings of obligation to serve the company accompany the views on a corporation.
E) Usually, family and friends take precedence over the company.

Question 57

Estimates are that 78 percent of today's Web site content is written in English, but an English e-mail message cannot be understood by _____ of all Internet users.

A) over half
B) 35 percent
C) two-thirds
D) 20 percent
E) 40 percent

Question 58

Which of the following is the fundamental concept of U.S. corporations?

A) Individual self-interest is socially beneficial.
B) The corporation has no soul.
C) An organization is the world in miniature.
D) Independent enterprise is an instrument for social action.
E) The government should be an integral part of any organization.

Question 59

In a high context implicit communication environment who says something, how it is said, and when it is said is very important. Which of the following countries would we find to be "high context implicit" with respect to communication practices?

A) Switzerland
B) Saudi Arabia
C) France
D) United States
E) Germany

Question 60

According to the text, which of the following is the most fundamental notion in Western management?

A) The "master of destiny" philosophy
B) Decisions based on objective analysis
C) Wide sharing in decision making
D) Never-ending quest for improvement
E) Competition is crucial for efficiency

Question 61

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

A) Relationship-orientation
B) Multiple marriages
C) The extended family
D) Strong organizational hierarchy
E) Increase in consumerism

Question 62

Transparency International (TI) scores countries with respect to their prevalence for bribe taking. Bribery is least tolerated in which of the following countries?

A) United States
B) Japan
C) Germany
D) Israel
E) Denmark

Question 63

According to information presented in the text, which of the following would be considered to be corruption (or a corrupt practice) in India?

A) Profits
B) Individualism
C) Rampant consumerism
D) Intellectual property laws
E) Currency speculators

Question 64

Which of the following, according to data provided in Chapters 4 and 5, is more likely to exhibit higher levels of bribery?

A) Individualistic cultures
B) Countries with a strong culture of hierarchy
C) Nations with a communist path
D) Large countries, especially developed countries
E) Countries with low-power distance

Question 65

Ramon Garcia is excited about his first visit to the United States. As a representative of a Mexican vegetable producer, Ramon knows that he will have to forget "Mexican time" and be aware of "American time." As he shifts to "American time," which of the following time models will Mr. Garcia need to understand and follow if he is to be successful during his stay in America?

A) P-time--polychronic time.
B) B-time--bimodal time.
C) D-time--dual time.
D) M-time-monochronic time.
E) S-time-sequence time.

Question 66

It is often said that it takes two to bribe--one to receive and one to pay. In which of the following countries would companies be least likely to pay a bribe to obtain business or gain favor?

A) United States
B) Australia
C) Spain
D) Taiwan
E) Japan

Question 67

Which of the following increases the possibility of misinterpretation of others' motives in a negotiation scenario?

A) Using one's self-reference criteria as the basis for assessment
B) Insufficient probing about unclear and ambiguous areas
C) Lack of documentation of the negotiation process
D) Involvement of a neutral third-party mediator
E) Lack of proficiency in the other's language

Question 68

Transparency International (TI) scores countries with respect to their prevalence for bribe taking. Bribery is most tolerated in which of the following countries?

A) Singapore
B) Canada
C) Germany
D) Australia
E) France

Question 69

As Mark Hall examines markets for his company's new digital watch product, he has reservations about market potential in some countries. He knows that countries that are addicted to speed with respect to time would make better markets than those that are not. According to rankings of speed (with respect to time) appreciation, which of the following markets would most likely be a good one for Mr. Hall to pursue first with his company's new product?

A) China
B) Mexico
C) Germany
D) Canada
E) Indonesia

Question 70

Time is viewed differently around the world. For example, in Spain "those who rush arrive first at the grave" is a description of feelings toward time. In which country would we expect to hear the description of time as being "time is money"?

A) France
B) Japan
C) Hong Kong
D) England
E) United States

Question 71

When a U.S. female is selected for an international assignment the going might be difficult given the attitude of many foreign organizations toward females in positions of authority. In addition to training, which of the following would be a key to the female's success in a foreign assignment?

A) Amount of money to be paid for the assignment
B) Bonus options
C) Social background
D) Age
E) Strength of the firm's backing

Question 72

Which of the following refers to the orientation in which consumers and businesses alike will not buy enough without prodding?

A) Distribution orientation
B) Marketing orientation
C) Production orientation
D) Product orientation
E) Selling orientation

Question 73

Many international marketing companies address the Internet language problem by:

A) using only English on their Web sites.
B) using language translation software whenever possible.
C) having country-specific Web sites.
D) using foreign language blocking software to screen international communications.
E) using America OnLine global Internet portal services.

Question 74

The basic elements of an international business negotiation include all of the following EXCEPT:

A) price and terms.
B) services.
C) product.
D) politics.
E) friendship between vendor and customers.

Question 75

In the United States, Switzerland, Germany, and Norway one thing at a time receives attention with respect to time. This would be called:

A) P-time--polychronic time.
B) B-time--bimodal time.
C) D-time--dual time.
D) M-time-monochronic time.
E) S-time-sequence time.

Question 76

AIDS is rampant in many sub-Saharan African nations. Because of this fact, which of the following would most likely be viewed as a corrupt practice (or corruption) by African nations and their leaders?

A) Capitalism
B) Individualism
C) Rampant consumerism
D) Intellectual property laws
E) Currency speculators

Question 77

As Luci Chen sits in her office in Shanghai she is looking at her daily appointment calendar. Even though she has many appointments, she knows that she will spend quality time with each person. After all, being involved with people and being sensitive to relationships is just as important (if not more important) than sticking to a schedule. Ms. Chen could be characterized following which of the following time models?

A) P-time--polychronic time.
B) B-time--bimodal time.
C) D-time--dual time.
D) M-time-monochronic time.
E) S-time-sequence time.

Question 78

Even though speed is relative in a cultural context, we would expect workers from which of the following countries to be so obsessed with speed (walking, accomplishing tasks, and accuracy of time pieces) that this country ranks number one in the world?

A) Switzerland
B) Japan
C) Germany
D) Brazil
E) United States

Question 79

Gerard is heading his sales team for negotiations with their Arab partners. He was educated about the communication preferences well in advance by his PR person. Which of the following could be the most common mistake that he might have committed otherwise?

A) Haste and impatience
B) Dressing like an Arab national
C) Using the first name to address an individual
D) Interacting with members who are lower in organizational status
E) Speaking in English

Question 80

Which of the following organizations is dedicated to "curbing corruption through international and national coalitions encouraging governments to establish and implement effective laws, policies, and anticorruption programs"?

A) Organization of American States (OAS)
B) United Nations (UN)
C) The Hague Committee
D) Transparency International (TI)
E) World Trade Organization (WHO)