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Chapter 02

chapter 02.doc

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Department
Administrative Studies
Course Code
ADMS 3960
Professor
Brian Zeiler- Kligman

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International Business: Environments and Operations, 14e (Daniels et al.) Chapter 2 The Cultural Environments Facing Business 1) ________ consists of specific learned norms based on attitudes, values, and beliefs of a group of people. A) Ethnology B) Civilization C) Culture D) Doctrine Answer: C Diff: 1 Skill: Concept Objective: 1 AACSB: Multicultural and diversity understanding 2) Which of the following is NOT true about cultural diversity? A) Companies may gain competitive advantages by bringing together people of diverse backgrounds. B) Cultural diversity is most successful when domestic and foreign firms establish joint ventures. C) Cultural diversity may help a company gain deeper knowledge about products and services. D) The process of bringing people of different national cultures together is often difficult. Answer: B Diff: 3 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 1 AACSB: Multicultural and diversity understanding 3) Because people can be grouped in many ways, such as on the basis of nationality, ethnicity, religion, profession, and income level, ________. A) people live in a state of cultural collision B) cultural studies fail to understand behaviors C) identity crises make individual's lives chaotic D) people have more than one cultural group membership Answer: D Diff: 2 Skill: Concept Objective: 1 AACSB: Multicultural and diversity understanding 1 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 4) When divergent cultures come in contact, ________ occurs. A) power distance B) culture shock C) cultural collision D) group membership Answer: C Diff: 1 Skill: Concept Objective: 1 AACSB: Multicultural and diversity understanding 5) Which of the following best describes a condition under which cultural collision would most likely occur in international business? A) A company implements practices that are less effective than intended. B) Local employees are overlooked for promotions by home country managers. C) Expatriate managers rely too heavily on local employees for negotiating business deals. D) Foreign and domestic companies make adjustments for the local culture and legal environment. Answer: A Diff: 3 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Application Objective: 1 AACSB: Multicultural and diversity understanding 6) Which of the following is the most accurate statement about culture? A) Cultural variables can easily be isolated from other factors such as economic and political conditions. B) Although most cultural variables are universal, the forms these variables take differ from culture to culture. C) Most cultural variables are superficial and can easily be influenced by environmental factors. D) Within a culture, everyone responds to particular cultural variables the same way. Answer: B Diff: 3 Skill: Concept Objective: 1 AACSB: Multicultural and diversity understanding 2 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 7) Businesspeople seeking to understand more about another culture in order to successfully conduct business within that culture would be best advised to do which of the following? A) observing the behavior of people who have gained respect within that cultural environment B) relying on stereotypes, which are based on averages, to gain an understanding of the culture C) avoiding cultural research studies because they perpetuate unjustified stereotypes and behaviors D) memorizing the cultural variations that are typically encountered in a specific cultural environment Answer: A Diff: 2 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Application Objective: 1 AACSB: Multicultural and diversity understanding 8) Which of the following is a common shortcoming of studies examining culture in different countries and regions? A) Cultures are static, which leads researchers to draw false conclusions from old data. B) It is impossible to compare countries because of differences in the form of data collected. C) Responses are reported in averages, which can lead to a belief in unrealistic stereotypes. D) People are reluctant to complain about their own cultures, so they present only positive opinions to researchers. Answer: C Diff: 3 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 1 AACSB: Multicultural and diversity understanding 9) The nation offers a workable reference for studying cultural differences because ________. A) a nation contains only one distinct culture B) similarity among people is both a cause and effect of national boundaries C) the commonality of language within a nation eases the process of conducting surveys D) different groups within the same country always have more in common with each other than with groups in other countries Answer: B Diff: 2 Skill: Concept Objective: 2 AACSB: Multicultural and diversity understanding 3 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 10) A problem of using the nation as a reference point for culture is that ________. A) nations fail to mediate the different interests within their boundaries B) self-stereotypes tend to fall along national lines C) such an approach tends to be polycentric D) variations tend to be great within a country Answer: D Diff: 2 Skill: Concept Objective: 2 AACSB: Multicultural and diversity understanding 11) Because certain cultural attributes can link groups from different nations more closely than groups within a given nation, international businesspeople should most likely ________. A) assume that there are few significant cultural differences among nations B) examine relevant groups when comparing nations C) adopt universal operating methods D) avoid cultural imperialism Answer: B Diff: 2 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 2 AACSB: Multicultural and diversity understanding 12) It is most accurate to say that within a nation's borders, people largely share such essential attributes as ________ and ________. A) work attitudes; religion B) lifestyles; social classes C) education; ethnicity D) values; language Answer: D Diff: 2 Skill: Concept Objective: 2 AACSB: Multicultural and diversity understanding 13) Most people's basic value system is ________. A) modified significantly between childhood and adulthood B) altered during adulthood through imposition C) affected primarily by teenage peer pressure D) acquired mainly during early childhood Answer: D Diff: 2 Skill: Concept Objective: 2 AACSB: Multicultural and diversity understanding 4 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 14) Contact among countries brings about cultural change, which is a process called ________. A) cultural collision B) cultural imperialism C) cultural diffusion D) creolization Answer: C Diff: 2 Skill: Concept Objective: 2 AACSB: Multicultural and diversity understanding 15) Creolization refers to ________. A) government efforts to maintain a distinct cultural identity through legislation and language B) the process of mixing elements of an outside culture with those of a national culture C) the use of stereotypes to describe a culture D) changes as cultures evolve over time Answer: B Diff: 2 Skill: Concept Objective: 2 AACSB: Multicultural and diversity understanding 16) Cultural change imposed by an alien culture is called ________. A) multicultural ethnocentrism B) cultural imperialism C) collectivism D) creolization Answer: B Diff: 1 Skill: Concept Objective: 2 AACSB: Multicultural and diversity understanding 17) Which of the following languages has the most native speakers? A) English B) Mandarin C) Spanish D) Hindi Answer: B Diff: 1 Skill: Concept Objective: 2 AACSB: Multicultural and diversity understanding 5 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 18) ________ peoples account for the largest percentage of global production. A) English-speaking B) Mandarin-speaking C) French-speaking D) Spanish-speaking Answer: A Diff: 2 Skill: Concept Objective: 2 AACSB: Multicultural and diversity understanding 19) Which of the following statements about the English language is most likely NOT true? A) The largest portion of global output is in English-speaking countries. B) A large portion of MNEs are headquartered in English-speaking countries. C) English is the official national language in most countries where FDI is encouraged. D) Many MNEs from non-English speaking countries use English as their operating language. Answer: C Diff: 3 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 2 AACSB: Multicultural and diversity understanding 20) Although English is referred to as the "international language of business,"________. A) it is less frequently used than French in international business B) there is a growing disagreement over which version of English to use, e.g. British, American, or Australian C) companies headquartered outside English-speaking countries all use their official language as their operating language D) monolingual English speakers may experience more difficulty in the future in communicating on a worldwide basis Answer: D Diff: 3 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 2 AACSB: Multicultural and diversity understanding 6 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 21) International businesspeople need to understand social stratification systems where they do business because ________. A) such systems reflect a culture's willingness to accept product changes B) such systems indicate who people in a given culture will respect more C) the high similarity among countries lets firms effectively use global hiring practices D) what is an ascribed group membership in one country is an acquired one in another Answer: B Diff: 3 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 3 AACSB: Multicultural and diversity understanding 22) Which of the following is an example of an acquired group membership? A) national origin B) religion C) gender D) race Answer: B Diff: 1 Skill: Concept Objective: 3 AACSB: Multicultural and diversity understanding 23) The more closed a society is, the more important ________ group membership is. A) acquired B) age-based C) education D) ascribed Answer: D Diff: 2 Skill: Concept Objective: 3 AACSB: Multicultural and diversity understanding 24) Studies indicate a strong correlation between the intensity of religious belief and ________. A) a desire to convert productivity gains into more leisure time B) an adherence to attributes that lead to economic growth C) the belief that material success is related to salvation D) the degree of ethnocentrism exhibited in a culture Answer: B Diff: 2 Skill: Concept Objective: 3 AACSB: Multicultural and diversity understanding 7 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 25) According to the theory of success and reward expectation, the greatest enthusiasm for work generally occurs when there is a ________ likelihood of success combined with a ________ reward for success compared to the reward for failure. A) high; high B) high; low C) low; high D) low; low Answer: C Diff: 2 Skill: Concept Objective: 3 26) A country in which the norm is a money-and-things orientation and a belief that it's better to "live to work" than to "work to live" is most accurately characterized as a ________ culture. A) high masculinity B) physiological C) non-fatalistic D) high-femininity Answer: A Diff: 1 Skill: Concept Objective: 3 AACSB: Multicultural and diversity understanding 27) Based on the hierarchy-of-needs theory, in which of the following would fulfillment of lower-order needs be the best motivator? A) wealthy countries B) Protestant countries C) high femininity countries D) very poor countries Answer: D Diff: 2 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 3 AACSB: Multicultural and diversity understanding 8 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 28) People generally prefer little consultation between superiors and subordinates in cultures where ________ is high. A) power distance B) fatalism C) individualism D) masculinity Answer: A Diff: 2 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 3 AACSB: Multicultural and diversity understanding 29) Which of the following is characterized by low dependence on an organization and a desire for personal time, freedom, and challenges? A) collectivism B) democracy C) individualism D) anarchy Answer: C Diff: 1 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 3 AACSB: Multicultural and diversity understanding 30) ATX Enterprises has operations in Tokyo, a collectivist culture. Which of the following would most likely motivate the firm's Japanese employees? A) opportunities for personal decision making B) extensive vacation time C) on-the-job challenges D) good health benefits Answer: D Diff: 2 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Application Objective: 3 AACSB: Multicultural and diversity understanding 9 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 31) Safe work environments motivate ________; challenges motivate ________. A) individualists; collectivists B) collectivists; individualists C) non-fatalists; fatalists D) materialists; non-materialists Answer: B Diff: 2 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 3 AACSB: Multicultural and diversity understanding 32) Managers should be more precise in their directions to subordinates when ________. A) the company has a philosophy of geocentrism B) the society believes age equals wisdom C) uncertainty avoidance is high D) power distance is low Answer: C Diff: 2 Learning Outcome: Discuss the role of ethics and social responsibility in international business Skill: Application Objective: 3 AACSB: Multicultural and diversity understanding 33) In societies where trust is high, ________. A) people tend to be more future-oriented B) business costs are typically lower C) people tend to be more fatalistic D) family businesses are dominant Answer: B Diff: 2 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 3 AACSB: Multicultural and diversity understanding 10 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 34) Paulson Manufacturing has facilities around the world. Expatriate managers located in cultures characterized by ________ have noticed that local employees are highly motivated by retirement programs. A) low uncertainty avoidance B) high future orientation C) low masculinity D) high trust Answer: B Diff: 2 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Application Objective: 3 AACSB: Multicultural and diversity understanding 35) Raj, an engineer, works long hours and takes full responsibility for both his good and bad work performance. Raj most likely believes in ________. A) self-determination B) low power distance C) collectivism D) fatalism Answer: A Diff: 2 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Application Objective: 3 AACSB: Multicultural and diversity understanding 36) In a(n) ________ culture, people tend to regard seemingly peripheral information as pertinent to decision making and infer meanings from things that people say either indirectly or casually. A) pragmatic B) idealistic C) fatalistic D) high-context Answer: D Diff: 1 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 3 AACSB: Multicultural and diversity understanding 11 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 37) A culture in which people prefer to finish one task before starting another is most accurately characterized as which of the following? A) low-context B) monochronic C) pragmatic D) high power-distance Answer: B Diff: 1 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 3 AACSB: Multicultural and diversity understanding 38) A culture that prefers to first settle general principles rather than small issues is most accurately characterized as ________. A) idealist B) polychronic C) high-context D) pragmatist Answer: A Diff: 1 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 3 AACSB: Multicultural and diversity understanding 39) The attempt to resolve small issues before principles is a characteristic of which of the following? A) relativism B) monochronic behavior C) pragmatism D) uncertainty avoidance Answer: C Diff: 1 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 3 AACSB: Multicultural and diversity understanding 12 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 40) All of the following are international business translation problems EXCEPT which of the following? A) All written work requires back translation in order to be understood in a second language. B) Because languages and the common meaning of words are constantly evolving, the intended meaning of a word may be different from what the listener or reader understands. C) Some words in one language simply don't have a direct translation into another language. D) Words mean different things in different contexts, thus the wrong context may be translated. Answer: A Diff: 3 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 3 AACSB: Communication abilities 41) When a company does business in another country whose official language is the same as its home country's, the company should most likely ________. A) assume that communications will go smoothly B) use back-translation on all written documents C) realize that words may have different meanings D) assume that word meanings are the same despite spelling differences Answer: C Diff: 2 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 3 AACSB: Communication abilities 42) Jack, an American accounts manager, is preparing a presentation for a group of Japanese businesspeople. Jack's presentation would be most effective if he ________. A) told an opening joke to put everyone at ease B) used slang to create an informal atmosphere C) used long words to impress his counterparts D) budgeted extra time for translation and clarification Answer: D Diff: 2 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Application Objective: 3 AACSB: Communication abilities 13 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 43) Evaluating the importance of potential clients or partners by the way they dress is an example of using ________. A) pragmatism B) silent language C) polychronism D) fatalism Answer: B Diff: 2 Skill: Concept Objective: 3 AACSB: Communication abilities 44) The term cultural distance refers to the ________. A) physical space between people during communication B) time it takes people to adjust to the language, traditions, and norms of a foreign culture C) degree to which countries' cultures are separated by language, ethnicity, and religion D) preferred relationship between superiors and subordinates in a given culture Answer: C Diff: 1 Skill: Concept Objective: 4 AACSB: Multicultural and diversity understanding 45) Ellen worked for a U.S. architectural firm at its German office 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 ________. A) reverse culture shock B) polycentrism C) culture shock D) ethnocentrism Answer: A Diff: 1 Skill: Application Objective: 4 AACSB: Multicultural and diversity understanding 14 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 46) One of the potential problems for an MNE that practices too much polycentrism is ________. A) demanding that local communication methods be replaced with modern technology B) underestimating the complexity of introducing new management practices C) losing innovative capabilities to less-risky host-country practices D) relying too much on home-country directions and policies Answer: C Diff: 3 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 4 AACSB: Multicultural and diversity understanding 47) Ethnocentrism in international business refers to the ________. A) study of group ethics and corporate social responsibility B) comparison of the Protestant ethic with other religious views C) belief that what works best at home should work best everywhere D) study of ethnic segmentation within different developing countries Answer: C Diff: 2 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 4 AACSB: Multicultural and diversity understanding 48) 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 ________. A) polycentrism B) ethnocentrism C) neocentrism D) geocentrism Answer: D Diff: 1 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 5 AACSB: Multicultural and diversity understanding 15 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 49) A firm that concentrates on national cultural differences in terms of averages is more likely to ________. A) exceed market demands B) increase political risks C) seek cultural collision D) overlook outliers Answer: D Diff: 2 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 4 AACSB: Multicultural and diversity understanding 50) Organizing work differently to improve productivity will likely fail ________. A) if the work force has a low tolerance for authoritarianism B) unless workers are compensated with annual bonuses C) unless changes are compatible to competitor's practices D) if changes interfere with strongly held value systems Answer: D Diff: 2 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 4 AACSB: Multicultural and diversity understanding 51) When a company wishes to introduce change in a foreign country, its likelihood of success can most likely be improved by ________. A) introducing many changes simultaneously B) gaining the support of local opinion leaders C) agreeing to make some home-country changes in return D) employing expatriate managers to supervise local workers Answer: B Diff: 2 Learning Outcome: Explain how differences in culture affect the international business environment Skill: Concept Objective: 4 AACSB: Multicultural and diversity understanding 16 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 52) 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. A) participation B) reward sharing C) an opinion leader D) a cost-benefit relationship Answer: C Diff: 2 Skill: Application Object
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