International Management Managing Across Borders and Cultures

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International Management, 7e (Deresky)
Chapter 5: Cross-Cultural Negotiation and Decision Making

1) Which of the following factors was LEAST responsible for the strained relationship that developed between British and Russian partners in TNL-BP? A) political issues
B) resource nationalism
C) insufficient financial funding
D) cross-cultural misunderstandings
Answer: C
Diff: 3Page Ref: 151
Chapter: 5
Skill: Concept

2) As illustrated by TNK-BP, problems associated with cross-cultural negotiations and decision making styles are the primary reasons for ________. A) lawsuits filed against MNCs by angry shareholders

B) decreasing numbers of international joint ventures
C) increasing regulations within the European Union
D) economic hardships in former socialist countries
Answer: B
Diff: 3Page Ref: 151
Chapter: 5
Skill: Concept

3) Which of the following terms refers to the process by which two or more parties meet to try to reach agreement regarding conflicting interests? A) codetermination
B) differentiation
C) globalization
D) negotiation
Answer: D
Diff: 1Page Ref: 152
Chapter: 5
Skill: Concept

4) Which of the following is the primary reason for ineffective cross-cultural business negotiations? A) insufficient knowledge about native bargaining rituals
B) highly restrictive government legislation
C) poorly planned business strategies
D) language differences
Answer: A
Diff: 3Page Ref: 152
Chapter: 5
Skill: Concept
5) For long-term positive relations, the goal of negotiation should most likely be to ________. A) attain the lowest price for a service or product
B) reach a settlement that benefits all parties
C) pressure all parties involved
D) make an easy profit
Answer: B
Diff: 2Page Ref: 152
Chapter: 5
Skill: Concept

6) A French businessman has a meeting scheduled with a Brazilian businessman to negotiate terms of a joint venture. The Frenchman prepares for the meeting in the way he always does when negotiating with French firms. The Frenchman assumes that the Brazilian will perceive and reason the way he does. Which of the following terms best describes the Frenchman's mistake? A) cognitive dissonance

B) moral idealism
C) parochialism
D) projective cognitive similarity
Answer: D
Diff: 3Page Ref: 152-153
Chapter: 5
Skill: Application

7) Which aspect of the negotiation process will most likely occur on a continuous basis? A) agreement
B) relationship building
C) preparation
D) concessions
Answer: B
Diff: 2Page Ref: 153
Chapter: 5
Skill: Concept

8) The different stages of the negotiation process are ________. A) preparation, relationship building, exchange of task-related information, persuasion, and concessions and agreement B) relationship building, proposal, exchange of task-related information, persuasion, and concessions and agreement C) preparation, relationship building, proposal, circulation, and approval D) proposal, circulation, persuasion, approval, and relationship building Answer: A

Diff: 2Page Ref: 153
Chapter: 5
Skill: Concept
9) Which of the following is a true statement regarding the negotiation process? A) The negotiation process consists of six different stages. B) The stages of the negotiation process are distinctly separate. C) The concession stage typically occurs before the preparation stage. D) Cultural norms determine the order of the negotiation process stages. Answer: D

Diff: 3Page Ref: 153
Chapter: 5
Skill: Concept

10) When preparing for cross-cultural negotiations, managers should first evaluate their own negotiation styles in order to ________. A) understand the reasons for failing or succeeding in domestic negotiations B) make a comparison with negotiating norms in other countries C) analyze the various stages of the negotiation process

D) assess any cognitive and emotional influences
Answer: B
Diff: 3Page Ref: 153
Chapter: 5
Skill: Concept

11) Which of the following...
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