Question 1

_____ refers to the setof values that helps anorganization's membersunderstand what it standsfor, how it does things, andwhat it considers important.
A) Culture
B) Diversity
C) Ethnicity
D) Egalitarianism
E) Organizational memory

Accepted Answer

Culture refers to the shared values, beliefs, customs, practices, and social behavior of a particular group or organization. An organization's culture helps its members understand its mission, vision, and goals, and guides their behavior and decision-making. Therefore, the set of values that an organization upholds is referred to as its culture.

Question 2

A cultural dimension identified by Hofstede that focuses on relationship building and quality of life is:
A) femininity.
B) uncertainty avoidance.
C) time orientation.
D) power distance.
E) individualism.

Accepted Answer

Hofstede's dimension of femininity refers to societies that emphasize quality of life, nurturing, and relationship building. This dimension contrasts with masculinity, which emphasizes assertiveness, competition, and material success. Therefore, this dimension is the best choice as it directly relates to relationship building and quality of life.

Question 3

In the context of entering the international business market, the process of making a product domestically and then selling it in another country is called importing.

Accepted Answer

The process of making a product domestically and then selling it in another country is called exporting, not importing. Importing refers to the act of bringing products and goods from another country into one's own country.

Question 4

Which of the following models involves staffing high-level foreign jobs with parent-country nationals?
A) Anthropocentric
B) Polycentric
C) Geocentric
D) Regiocentric
E) Ethnocentric

Accepted Answer

Ethnocentric model involves staffing high-level foreign jobs with parent-country nationals.

Question 5

In the context of Hofstede's dimensions of national culture, a culture that scores high in uncertainty avoidance prefers unstructured situations over structured situations.

Accepted Answer

The statement is incorrect. A culture that scores high in uncertainty avoidance prefers structured situations over unstructured situations. They value predictability, orderliness, and clear rules and regulations to minimize uncertainty and ambiguity.

Question 6

Tanya is a social activist who works in association with a local community in her city to spread awareness on the importance of education in rural areas.She is actively involved in planning and organizing programs conducted by the community.In the context of cultural dimensions identified by Hofstede, she is likely to score high on _____.
A) uncertainty avoidance
B) collectivism
C) masculinity
D) power distance
E) short-term orientation

Accepted Answer

The cultural dimension of collectivism emphasizes on the values of the group over the individuals. Tanya's involvement with the community and her efforts to spread awareness for education in rural areas suggest that she values group collaboration and social cohesion, indicating a high score in collectivism. Uncertainty avoidance refers to the degree to which people in a culture feel uncomfortable with ambiguity, and there is no information to suggest Tanya's stance on uncertainty avoidance. Masculinity refers to the emphasis on achievement, competitiveness, and assertiveness, which is not applicable in this context. Power distance measures the acceptance of unequal distribution of power, and there is not enough information to conclude Tanya's attitude towards it. Short-term orientation refers to a focus on immediate objectives rather than long-term planning, and there is no information to suggest Tanya's preference.

Question 7

In the context of Hofstede's dimensions of national culture, a culture that scores high in femininity tends to value quality of life and relationships.

Accepted Answer

According to Hofstede's dimensions of national culture, cultures that score high in femininity tend to value quality of life and relationships more than achievement, competitiveness and material possessions, which are emphasized in cultures that score high in masculinity.

Question 8

According to Geert Hofstede's cultural dimension model, uncertainty avoidance refers tothe extent towhich persons define themselves as individuals ratherthan as members of groups.

Accepted Answer

Uncertainty avoidance refers to the extent to which a society feels threatened by ambiguity and tries to avoid it by minimizing uncertainty. It is not related to individualism versus collectivism, which is another dimension in Hofstede's model.

Question 9

A geocentric staffing model is one where:
A) host-country nationals are used heavily because they know the local markets.
B) every aspect of the human resource managementprocessmust be undertaken from the host-countryperspective.
C) an organization seeks to hire the best person available for a position regardless of where the individual comes from.
D) expatriate home-country nationals are hired to fill higher-level foreign positions.
E) the home-office perspective takes precedence over local issues.

Accepted Answer

A geocentric staffing model seeks to hire the best person available for a position regardless of where they come from. This model allows organizations to select the most qualified candidates for positions, regardless of their nationality, with the aim of creating a diverse and multidimensional workforce. This approach can also help organizations to develop and retain employees who are capable of working in various parts of the world.

Question 10

Which of the following is true of developing countries like China and India today?
A) Their economies are independent of the economies of developed nations.
B) The demand for consumer goods in these countries has been steadily declining.
C) They have been experiencing slowing rates of population growth.
D) They are attractive sites for new businesses and joint ventures.
E) They are yet to enter the global business market.

Accepted Answer

Developing countries like China and India are attractive sites for new businesses and joint ventures due to their growing economies, large populations, and relatively low labor costs, among other factors. Many multinational corporations have already established a presence in these countries and more are likely to do so in the future.

Question 11

Cultural differences between people increase the potential for misunderstandings, miscommunication and similar problems.

Accepted Answer

Cultural differences can create communication barriers due to varying norms, values, beliefs, and customs. These differences can lead to misunderstandings, misinterpretations, and conflicts. Therefore, it is essential to be aware of cultural differences, and learn how to communicate and interact effectively with people from different cultures.

Question 12

Which of the following staffing modelscalls for the dominantuse of host-country nationalsthroughout the organization?
A) Ethnocentric
B) Polycentric
C) Geocentric
D) Egocentric
E) Anthropocentric

Accepted Answer

The polycentric staffing model calls for the dominant use of host-country nationals throughout the organization. This means that local individuals are preferred over international employees for key positions, especially in top management. This approach is often pursued in companies that prioritize local responsiveness and adaptation to the host country's culture and environment. The other options (ethnocentric, geocentric, egocentric, and anthropocentric) do not prioritize host-country nationals to the extent that the polycentric model does.

Question 13

Time orientation, which was given by Hofstede as one of the five dimensions of national culture, is associated with the emphasis on either long-term values or short-term values.

Accepted Answer

Time orientation is indeed one of the five dimensions of national culture given by Hofstede and is associated with the emphasis on either long-term values or short-term values.

Question 14

What is the term used when a company lets a foreign firm make and/or distribute its products in the foreign country's local market?
A) Exporting
B) Licensing
C) Direct investment
D) Joint venture
E) Strategic alliance

Accepted Answer

Licensing is the term used when a company lets a foreign firm make and/or distribute its products in the foreign country's local market. Exporting refers to the act of sending goods or services produced in one country to another country. Direct investment involves a company setting up a wholly-owned subsidiary in a foreign country. Joint venture refers to a business arrangement between two or more companies to undertake a specific project or task. Strategic alliance is a broad term that refers to any kind of cooperation or collaboration between two or more companies for mutual benefit.

Question 15

The ethnocentric staffing model utilizes host-country nationals extensively throughout the company.

Accepted Answer

The ethnocentric staffing model is centered on the use of parent-country nationals, with minimal involvement of host-country nationals.

Question 16

In the international business scenario, when a firm owns physical assets in another country, it is called direct foreigninvestment.

Accepted Answer

Direct foreign investment refers to a firm owning physical assets, such as factories or offices, in another country.

Question 17

The interdependence of global markets was demonstrated by the recent economic turndown in the United States that affected many other parts of the world.

Accepted Answer

The economic downturn in the United States had a ripple effect on other parts of the world, showing the interdependence of global markets.

Question 18

John prefers to work by himself on projects and avoids group work that requires him to monitor the actions of others.He would score high on the ____ dimension of Hofstede's model of culture.
A) power distance
B) individualism
C) masculinity
D) uncertainty avoidance
E) time orientation

Accepted Answer

The individualism dimension in Hofstede's model of culture refers to the degree to which individuals prioritize their own goals and desires over those of the group. John's preference for working on projects independently and avoiding group work suggests a high level of individualism. The other dimensions (power distance, masculinity, uncertainty avoidance, and time orientation) do not directly relate to his preference for working alone on projects.

Question 19

Which of the following cultural dimensions identified by Hofstede emphasizes a preference for structured circumstances over situations that are relatively unstructured?
A) Power distance
B) Collectivism
C) Masculinity
D) Time orientation
E) Uncertainty avoidance

Accepted Answer

The cultural dimension that emphasizes a preference for structured circumstances over situations that are relatively unstructured is uncertainty avoidance, according to Hofstede's cultural dimensions. This dimension reflects the extent to which members of a culture feel threatened by ambiguous or uncertain situations and prefer clear rules or procedures to guide their behavior. Therefore, the correct choice is E - uncertainty avoidance.

Question 20

There are often many differences in the benefit packages received by employees in different countries.

Accepted Answer

This statement is true. Benefit packages are often influenced by factors such as legal requirements, cultural differences, and cost of living in different countries, which can lead to significant variations between countries.

Quiz 3: The Global Environment

_____ refers to the setof values that helps anorganization's membersunderstand what it standsfor, how it does things, andwhat it considers important.

A cultural dimension identified by Hofstede that focuses on relationship building and quality of life is:

In the context of entering the international business market, the process of making a product domestically and then selling it in another country is called importing.

Which of the following models involves staffing high-level foreign jobs with parent-country nationals?

In the context of Hofstede's dimensions of national culture, a culture that scores high in uncertainty avoidance prefers unstructured situations over structured situations.

In the context of Hofstede's dimensions of national culture, a culture that scores high in femininity tends to value quality of life and relationships.

According to Geert Hofstede's cultural dimension model, uncertainty avoidance refers tothe extent towhich persons define themselves as individuals ratherthan as members of groups.

A geocentric staffing model is one where:

Which of the following is true of developing countries like China and India today?

Cultural differences between people increase the potential for misunderstandings, miscommunication and similar problems.

Which of the following staffing modelscalls for the dominantuse of host-country nationalsthroughout the organization?

Time orientation, which was given by Hofstede as one of the five dimensions of national culture, is associated with the emphasis on either long-term values or short-term values.

What is the term used when a company lets a foreign firm make and/or distribute its products in the foreign country's local market?

The ethnocentric staffing model utilizes host-country nationals extensively throughout the company.

In the international business scenario, when a firm owns physical assets in another country, it is called direct foreigninvestment.

The interdependence of global markets was demonstrated by the recent economic turndown in the United States that affected many other parts of the world.

John prefers to work by himself on projects and avoids group work that requires him to monitor the actions of others.He would score high on the ____ dimension of Hofstede's model of culture.

Which of the following cultural dimensions identified by Hofstede emphasizes a preference for structured circumstances over situations that are relatively unstructured?

There are often many differences in the benefit packages received by employees in different countries.