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International Business: The Role of Culture

By MohammedK2 Jun 08, 2013 7188 Words
International Business, 7e (Griffin/Pustay)
Chapter 4 The Role of Culture

1) Which term refers to the collection of values, beliefs, behaviors, customs, and attitudes that distinguish one society from another? A) history
B) culture
C) politics
D) norms
Answer: B
Diff: 1
Skill: Concept
Objective: 1

2) In which country is nepotism valued?
A) the United States
B) Great Britain
C) France
D) China
Answer: D
Diff: 2
Skill: Concept
Objective: 2

3) Which virtue of a job candidate would most likely NOT be perceived as valuable by a Japanese employer? A) unity
B) loyalty
C) individualism
D) personal responsibility
Answer: C
Diff: 2
AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 2
Learning Outcome: Explain how differences in culture affect the international business environment

4) From what source do cultural changes usually occur?
A) internal forces
B) external forces
C) strengths
D) weaknesses
Answer: B
Diff: 2
Skill: Concept
Objective: 2

5) Which of the following is not one of the basic elements of culture? A) social structure
B) language
C) religion
D) architecture
Answer: D
Diff: 2
Skill: Concept
Objective: 2

6) Social structure is best defined as the ________.
A) means by which a society's members communicate with each other B) attitudes of MNEs towards corporate social responsibility on a global scale C) overall framework that determines the roles of individuals within a society D) behavior of and opportunities available to MNCs operating in a given society Answer: C

Diff: 2
Skill: Concept
Objective: 2

7) Which of the following is not a component of social structure? A) individual roles
B) stratification of society
C) individual mobility within society
D) societal dress codes within regions
Answer: D
Diff: 2
Skill: Concept
Objective: 2

8) Which form of family is most emphasized in the United States? A) nuclear
B) extended
C) blended
D) ancestral
Answer: A
Diff: 2
Skill: Concept
Objective: 2

9) Which form of family is most emphasized in Somalia?
A) nuclear
B) extended
C) blended
D) ancestral
Answer: D
Diff: 3
Skill: Concept
Objective: 2

10) Businesses in ________ discourage nepotism while in ________ family ties are crucial to ensure the growth of a company. A) the U.S.; China
B) China; Germany
C) Saudi Arabia; the United Kingdom
D) France; the United States
Answer: A
Diff: 2
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 2
Learning Outcome: Explain how differences in culture affect the international business environment

11) Which country listed below is a group-focused society?
A) Japan
B) Germany
C) Ireland
D) Canada
Answer: A
Diff: 1
Skill: Concept
Objective: 2

12) In which of the following countries is social mobility likely to be highest? A) the United States
B) India
C) the United Kingdom
D) Hong Kong
Answer: A
Diff: 2
Skill: Concept
Objective: 2

13) Social stratification refers to how people in a society are ________. A) sorted for housing
B) identified by families
C) paid for employment
D) categorized by attributes
Answer: D
Diff: 2
Skill: Concept
Objective: 2

14) ________ is the ability of individuals to move from one stratum of society to another. A) Social stratification
B) Social mobility
C) Socialization
D) Hierarchical structure
Answer: B
Diff: 1
Skill: Concept
Objective: 2

15) The ________ the society, the more possible it is for individuals to move from one stratum to another. A) less stratified
B) more stratified
C) more populated
D) less populated
Answer: A
Diff: 2
Skill: Concept
Objective: 2

16) Which country listed below is not considered socially mobile? A) U.S.
B) India
C) Canada
D) Singapore
Answer: B
Diff: 2
Skill: Concept
Objective: 2

17) Cultural attitudes toward social mobility are LEAST likely to affect an international business in the area of ________. A) labor relations
B) human capital formation
C) risk taking
D) foreign exchange
Answer: D
Diff: 2
Skill: Concept
Objective: 2
Learning Outcome: Explain how differences in culture affect the international business environment

18) Historically, the rigid class system and low social mobility in the United Kingdom has led to ________. A) fewer young people seeking higher education
B) more elderly people dependent on families
C) less foreign investment in manufacturing
D) more tailored advertisements in the media
Answer: A
Diff: 2
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 2

19) According to the text, what is the most likely reason that Japan's cultural values could hinder the country's future prospects? A) Most firms prefer to hire experienced workers rather than new college graduates. B) The needs of young workers are being sacrificed to protect older workers. C) Lifetime employment policies promote the interests of businesses. D) Part-time employees are being offered full health benefits. Answer: B

Diff: 3
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 2
Learning Outcome: Explain how differences in culture affect the international business environment

20) Language ________.
A) is the exclusive means by which a society's members communicate with each other B) shapes the attitudes its adherents have toward work, consumption, individual responsibility, and planning for the future C) is the overall framework that determines the roles of individuals within a society, the stratification of the society, and the individuals' mobility within the society D) stems from deep-seated beliefs about the individual's position in relation to his or her deity, the family, and social hierarchy Answer: B

Diff: 2
Skill: Concept
Objective: 3

21) Countries with multiple language groups tend to be ________. A) homogeneous
B) heterogeneous
C) large
D) small
Answer: B
Diff: 2
Skill: Concept
Objective: 3

22) Bolton Products, an MNE based in Chicago, is developing a marketing campaign for a new laundry detergent that will be sold in Canada. What is the most relevant question that Bolton's marketers should ask when adapting their campaign for linguistic differences? A) What are the attitudes and needs of French Canadians and English Canadians? B) What are the geographic differences between British Columbia and Ontario? C) Which Canadian provinces are populated by French-speaking consumers? D) How does Canadian class structure differ from American class structure? Answer: A

Diff: 3
AACSB: Multicultural and diversity understanding
Skill: Critical Thinking
Objective: 3
Learning Outcome: Explain how differences in culture affect the international business environment

23) Quadro Tires is an MNE with facilities in Australia, Ireland, Canada, and the U.S. Which of the following is the LEAST likely problem that Quadro experiences in global management? A) political risks

B) cultural differences
C) language complications
D) supply chain variations
Answer: C
Diff: 2
Skill: Application
Objective: 3
Learning Outcome: Explain how differences in culture affect the international business environment

24) Lingua franca means ________.
A) common language
B) French language
C) official language
D) Latin language
Answer: A
Diff: 1
Skill: Concept
Objective: 3

25) ________ is the lingua franca of international business. A) French
B) Spanish
C) English
D) American
Answer: C
Diff: 1
Skill: Concept
Objective: 3

26) Before finalizing a new advertisement for the Chinese market, Barton Soda assigns one person to translate the advertisement from English to Chinese and another person to translate the translated version back into English. Barton is most likely using ________. A) translation

B) backtranslation
C) proofreading
D) market pre-testing
Answer: B
Diff: 2
Skill: Application
Objective: 3
Learning Outcome: Explain how differences in culture affect the international business environment

27) The primary purpose of conducting a backtranslation is to ________. A) convey a positive image
B) meet FAA requirements
C) avoid communication mistakes
D) ensure global media functionality
Answer: C
Diff: 2
Skill: Concept
Objective: 3

28) While negotiating a contract between an American firm and a Japanese supplier, the Japanese manager responds by saying "yes." The Japanese manager probably meant ________. A) yes, I agree

B) no, that's wrong
C) yes, I understand
D) I will think about it
Answer: C
Diff: 2
AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 3
Learning Outcome: Explain how differences in culture affect the international business environment

29) Communication senders and receivers from different cultures use ________ to encode or decode the message. A) perceptions
B) cultural filters
C) written tools
D) media
Answer: B
Diff: 1
Skill: Concept
Objective: 3

30) What percentage of information is transmitted among members of a culture by some means other than language? A) 20-30 percent
B) 40-50 percent
C) 60-70 percent
D) 80-90 percent
Answer: D
Diff: 1
Skill: Concept
Objective: 3

31) During a business meeting with Japanese executives, Jay, an American manager, uses his hand to make the "okay" signal. The Japanese executives will most likely interpret Jay's hand signal to mean ________. A) okay

B) a vulgarity
C) money
D) homosexuality
Answer: C
Diff: 2
AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 3
Learning Outcome: Explain how differences in culture affect the international business environment

32) Mario, a U.S. manager, is attending a business meeting with Saudi Arabian executives. During conversations, Mario should most likely expect that the Saudi Arabian executives will stand ________ from him. A) 10 inches

B) 20 inches
C) 30 inches
D) 40 inches
Answer: A
Diff: 2
Skill: Application
Objective: 3
Learning Outcome: Explain how differences in culture affect the international business environment

33) Brandon, a U.S. manager, is on a business trip in Tokyo meeting with a group of executives. Brandon receives a gift from one of the Japanese executives. What should Brandon most likely do? A) verify the gift's cost

B) open the gift in private
C) refuse to accept the gift
D) open the gift in front of the group
Answer: B
Diff: 2
AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 3
Learning Outcome: Explain how differences in culture affect the international business environment

34) Bad news in Korea should be delivered ________.
A) right away
B) in private
C) at the end of the day
D) when another person opens a gift
Answer: C
Diff: 3
Skill: Concept
Objective: 3

35) The rise of capitalism has been attributed by Max Weber to ________. A) the Protestant ethic
B) consumption desires
C) democracy
D) economic hardships
Answer: A
Diff: 2
Skill: Concept
Objective: 4

36) The Protestant ethic stresses all of the following except ________. A) hard work
B) frugality
C) achievement
D) consumption
Answer: D
Diff: 2
Skill: Concept
Objective: 4

37) According to the text, ________ of the world's population claims a religious affiliation. A) 95%
B) 85%
C) 75%
D) 65%
Answer: B
Diff: 2
Skill: Concept
Objective: 4

38) Hinduism stresses all of the following except ________.
A) spirituality
B) frugality
C) purity
D) consumption
Answer: D
Diff: 2
Skill: Concept
Objective: 4

39) According to the text, the second most popular religion in the world behind Christianity is ________. A) Islam
B) Judaism
C) Hinduism
D) Buddhism
Answer: A
Diff: 2
Skill: Concept
Objective: 4

40) Tristan is attending a business meeting in Saudi Arabia. How often during the day should Tristan expect his host to stop the meeting to pray to Allah each day? A) 2 times
B) 3 times
C) 4 times
D) 5 times
Answer: D
Diff: 2
Skill: Application
Objective: 4
Learning Outcome: Explain how differences in culture affect the international business environment

41) In which country does the attitude "time is money" prevail? A) Japan
B) Saudi Arabia
C) Canada
D) Mexico
E) Argentina
Answer: C
Diff: 2
Skill: Concept
Objective: 4

42) Attitudes ________.
A) are the means by which a society's members communicate with each other B) are the overall framework that determines the roles of individuals within a society C) shape the behavior of and opportunities available to MNCs operating in a given culture D) stem from deep-seated beliefs about the individual's position in relation to his or her deity Answer: C

Diff: 2
Skill: Concept
Objective: 4

43) In ________, it is acceptable to interrupt meetings to greet family or friends who wander by. A) the U.S.
B) Canada
C) England
D) Saudi Arabia
Answer: D
Diff: 1
Skill: Concept
Objective: 4
Learning Outcome: Explain how differences in culture affect the international business environment

44) In India, a person's status depends on ________.
A) age
B) corporate affiliation
C) caste
D) personal achievement
Answer: C
Diff: 1
Skill: Concept
Objective: 4

45) Which of the following countries is not considered a low-context culture? A) Canada
B) Australia
C) Korea
D) England
Answer: C
Diff: 2
Skill: Concept
Objective: 3

46) In a ________ culture, a speaker's words explicitly convey the speaker's message. A) verbal
B) low-context
C) high-context
D) linguistic
Answer: B
Diff: 2
Skill: Concept
Objective: 3

47) Which of the following countries is considered a high-context culture? A) Canada
B) Germany
C) China
D) England
Answer: C
Diff: 2
Skill: Concept
Objective: 3

48) Which of the following is a negotiating style common among Japanese managers? A) being argumentative
B) making subtle power plays
C) exhibiting emotional passion
D) making spontaneous decisions
Answer: B
Diff: 2
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Learning Outcome: Explain how differences in culture affect the international business environment

49) In a high-context culture, the presence of a lawyer during business dealing would be considered a sign of ________. A) wisdom
B) trust
C) distrust
D) pragmatism
E) commitment
Answer: C
Diff: 2
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 3
Learning Outcome: Explain how differences in culture affect the international business environment

50) A ________ comprises countries that share many cultural similarities. A) value cluster
B) cultural cluster
C) trading bloc
D) region
Answer: B
Diff: 1
Skill: Concept
Objective: 5

51) What is a greenfield investment?
A) a brand-new investment
B) a corporate shift toward a "greener" strategy
C) a joint venture with a firm that is recognized as a "green" company D) an overall shift in attitude towards less waste and more foreign investment Answer: A
Diff: 2
Skill: Concept
Objective: 5

52) Which country cluster is made up of Belgium, France, Italy, Portugal, and Spain? A) Anglo
B) Nordic
C) Germanic
D) Latin European
E) Latin American
Answer: D
Diff: 2
Skill: Concept
Objective: 5

53) Which of the following is NOT characteristic of the Latin American negotiating style? A) impatience with documentation
B) hiding of emotions
C) impulsive decision making
D) loyalty to employer
Answer: B
Diff: 2
Skill: Concept
Objective: 4

54) Which of the following is not one of Hofstede's Five Dimensions? A) social orientation
B) cultural orientation
C) time orientation
D) uncertainty orientation
Answer: B
Diff: 2
Skill: Concept
Objective: 6

55) ________ is a person's beliefs about the relative importance of the individual and the groups to which that person belongs. A) Social orientation
B) Time orientation
C) Uncertainty orientation
D) Goal orientation
Answer: A
Diff: 1
Skill: Concept
Objective: 6

56) ________ is the cultural belief that the person comes first. A) Social orientation
B) Individualism
C) Uncertainty orientation
D) Goal orientation
Answer: B
Diff: 1
Skill: Concept
Objective: 6

57) According to Hofstede's Five Dimensions, ________ is the opposite of individualism. A) wa
B) groupism
C) collectivism
D) goal orientation
Answer: C
Diff: 1
Skill: Concept
Objective: 6

58) Which of the following countries is not considered a collectivist culture? A) Singapore
B) New Zealand
C) Hong Kong
D) Pakistan
E) Taiwan
Answer: B
Diff: 2
Skill: Concept
Objective: 6

59) Cultures emphasizing collectivism are more likely to emphasize ________. A) self-interest
B) self-actualization
C) nepotism
D) higher education
Answer: C
Diff: 2
Skill: Concept
Objective: 6

60) In Japan, a collectivist society, a CEO's pay primarily reflects ________. A) knowledge
B) group performance
C) personal accomplishments
D) individual contributions to the firm
Answer: B
Diff: 2
Skill: Concept
Objective: 6
Learning Outcome: Explain how differences in culture affect the international business environment

61) In a collectivist society, changing jobs is most likely interpreted as ________. A) wisdom
B) disloyalty
C) impatience
D) ambition
Answer: B
Diff: 2
Skill: Concept
Objective: 6
Learning Outcome: Explain how differences in culture affect the international business environment

62) In which country would an employee most likely question the decision of a manager? A) Spain
B) Japan
C) Germany
D) Singapore
Answer: C
Diff: 2
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 6
Learning Outcome: Explain how differences in culture affect the international business environment

63) In cultures characterized by ________, people at all levels in a firm accept the decision of those above them because of the implicit belief that higher-level positions carry the right to make decisions. A) power respect

B) power tolerance
C) uncertainty avoidance
D) passive goal behavior
Answer: A
Diff: 1
Skill: Concept
Objective: 6

64) ________ is the feeling people have regarding ambiguous situations. A) Power orientation
B) Locus of control
C) Optimism
D) Uncertainty orientation
Answer: D
Diff: 1
Skill: Concept
Objective: 6

65) Formal rules and standards in the workplace are preferred by individuals from a culture high in ________. A) power tolerance
B) power respect
C) uncertainty avoidance
D) uncertainty acceptance
Answer: C
Diff: 2
Skill: Concept
Objective: 6
Learning Outcome: Explain how differences in culture affect the international business environment

66) ________ refers to the extent to which members of a culture adopt a long-term versus a short-term outlook on work, life, and other aspects of society. A) Need for achievement
B) Time orientation
C) Power orientation
D) Uncertainty orientation
Answer: B
Diff: 1
Skill: Concept
Objective: 6

67) ________ is the unconscious use of one's own culture to help assess new surroundings. A) Cultural conversion
B) Cultural illiteracy
C) Cross-cultural literacy
D) Self-reference criterion
E) Acculturation
Answer: D
Diff: 1
Skill: Concept
Objective: 7

68) What is the first step in acculturation?
A) cultural conversion
B) cross-cultural literacy
C) self-reference criterion
D) language training
Answer: B
Diff: 2
Skill: Concept
Objective: 7

69) ________ is the process by which people not only understand a foreign culture but also modify and adapt their behavior to make it compatible with that culture. A) Cultural conversion
B) Cross-cultural literacy
C) Culture training
D) Acculturation
Answer: D
Diff: 1
Skill: Concept
Objective: 7

70) Why did the producers of the The Apprentice have problems selling the Japanese version of the show to Japanese TV networks? A) Public humiliation is avoided in the Japanese culture.
B) Japanese networks were offended by the show's language.
C) Backtranslation tools were unavailable to the Japanese producers. D) The Japanese political system supports the concept of lifetime employment. Answer: A
Diff: 2
Skill: Concept
Objective: 2
Learning Outcome: Explain how differences in culture affect the international business environment

71) Country X has 14 official languages and nearly 2,000 dialects. Which of the following is most likely a true statement? A) Nonverbal communication is unlikely to be very effective in Country X. B) Income and value differences exist among the citizens of Country X. C) MNEs should avoid Country X due to costly adaptation needs. D) Nationhood is the defining factor of the society in Country X. Answer: B

Diff: 3
Skill: Application
Objective: 2
Learning Outcome: Explain how differences in culture affect the international business environment

72) According to the low-context-high-context theory, in which of the following countries should advertisements be fact-oriented? A) Japan
B) Greece
C) Saudi Arabia
D) Switzerland
Answer: D
Diff: 2
AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 5
Learning Outcome: Explain how differences in culture affect the international business environment

73) According to the low-context-high-context theory, business decisions made by ________ managers are more likely to be impulsive. A) American
B) Mexican
C) Japanese
D) German
Answer: B
Diff: 2
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 5
Learning Outcome: Explain how differences in culture affect the international business environment

74) According to Ronen and Shenkar, which of the following countries is NOT in the same cultural cluster? A) Austria
B) Norway
C) Denmark
D) Sweden
Answer: A
Diff: 2
Skill: Concept
Objective: 5

75) According to Ronen and Shenkar, which of the following countries does NOT belong to a country cluster? A) Chile
B) Turkey
C) India
D) Taiwan
Answer: C
Diff: 2
Skill: Concept
Objective: 5

76) Culture is permanent; it does not change.
Answer: FALSE
Diff: 1
Skill: Concept
Objective: 1

77) Individuals with a shared culture are members of a society. Answer: TRUE
Diff: 2
Skill: Concept
Objective: 1

78) Movies that are successful in the United States and the United Kingdom are generally successful in other developed markets such as Japan and India. Answer: FALSE
Diff: 2
Skill: Concept
Objective: 1

79) Culture is a learned behavior that is passed from one society member to another. Answer: TRUE
Diff: 2
Skill: Concept
Objective: 1

80) Family is more important to business in the U.S. than it is in China. Answer: FALSE
Diff: 2
Skill: Concept
Objective: 2
Learning Outcome: Explain how differences in culture affect the international business environment

81) Personal characteristics are more important than personal accomplishments in group-focused societies. Answer: TRUE
Diff: 2
Skill: Concept
Objective: 2

82) In highly stratified societies, MNCs must consider class differences among workers when making decisions about promotions. Answer: TRUE
Diff: 2
Skill: Concept
Objective: 2
Learning Outcome: Explain how differences in culture affect the international business environment

83) Social mobility tends to be lower in less stratified societies. Answer: FALSE
Diff: 2
Skill: Concept
Objective: 2

84) The Japanese concept of wa encourages individual achievement as a way to achieve social harmony. Answer: FALSE
Diff: 2
Skill: Concept
Objective: 2

85) Language can provide important clues about the cultural values of a society. Answer: TRUE
Diff: 2
Skill: Concept
Objective: 2

86) Countries with multiple languages tend to be homogeneous. Answer: FALSE
Diff: 1
Skill: Concept
Objective: 2

87) Business transactions between firms in Australia, Canada, and the United Kingdom are facilitated by a shared language. Answer: TRUE
Diff: 1
Skill: Concept
Objective: 2
Learning Outcome: Explain how differences in culture affect the international business environment

88) Spanish is the lingua franca of international business.
Answer: FALSE
Diff: 1
Skill: Concept
Objective: 2

89) Because English is the common language of business, experts believe that managers from English- speaking nations do not need to learn foreign languages. Answer: FALSE
Diff: 2
Skill: Concept
Objective: 2

90) Backtranslation can help a firm avoid sending the wrong message to their customers. Answer: TRUE
Diff: 1
Skill: Concept
Objective: 2

91) Nonverbal communication involves only about 20 percent of all information transmitted among members of a culture. Answer: FALSE
Diff: 2
Skill: Concept
Objective: 3

92) Silence communicates meaning just the same as sound does. Answer: TRUE
Diff: 2
Skill: Concept
Objective: 3

93) In Japan, it is most appropriate to open a business gift publicly to ensure that the gift giver gains status. Answer: FALSE
Diff: 2
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 4
Learning Outcome: Explain how differences in culture affect the international business environment

94) Countries dominated by Islamic adherents typically limit job opportunities for women. Answer: TRUE
Diff: 2
Skill: Concept
Objective: 4
Learning Outcome: Explain how differences in culture affect the international business environment

95) According to Sharia law, interest payments are required in business transactions. Answer: FALSE
Diff: 2
Skill: Concept
Objective: 4

96) Government officials in China would most likely prefer to deal with a young manager from the U.S. than a senior level manager. Answer: FALSE
Diff: 2
AACSB: Multicultural and diversity understanding
Skill: Concept
Objective: 4
Learning Outcome: Explain how differences in culture affect the international business environment

97) A cultural cluster comprises countries that share many cultural similarities. Answer: TRUE
Diff: 1
Skill: Concept
Objective: 5

98) If a manager accepts the power and authority of his superiors simply on the basis of the superior's position in the hierarchy, the person is probably from a culture that is characterized by power respect. Answer: TRUE

Diff: 2
Skill: Concept
Objective: 6

99) People in New Zealand and Norway tend to have a high power tolerance. Answer: FALSE
Diff: 2
Skill: Concept
Objective: 6

100) The attitude that parents should be treated as superiors is common in a culture characterized by power respect. Answer: TRUE
Diff: 2
Skill: Concept
Objective: 6

101) Germany is a low-context culture.
Answer: TRUE
Diff: 1
Skill: Concept
Objective: 6

102) People in France and Italy view ambiguity and change as undesirable. Answer: TRUE
Diff: 1
Skill: Concept
Objective: 6
Learning Outcome: Explain how differences in culture affect the international business environment

103) Hong Kong and South Korea are unique in Asia in that they have a short-term time orientation. Answer: FALSE
Diff: 2
Skill: Concept
Objective: 6
Learning Outcome: Explain how differences in culture affect the international business environment

104) The business needs of an Internet start-up firm would most likely be met in a power-tolerant culture such as Austria than in a power-respecting culture such as Spain. Answer: TRUE
Diff: 2
Skill: Concept
Objective: 6
Learning Outcome: Explain how differences in culture affect the international business environment

105) Cultural convergence is facilitated by MNCs through their advertisements that define appropriate lifestyles, attitudes, and goals. Answer: TRUE
Diff: 2
Skill: Concept
Objective: 7
Learning Outcome: Explain how differences in culture affect the international business environment

106) What is a culture? What are the basic elements of culture? Answer: Culture is the collection of values, beliefs, behaviors, customs, and attitudes that distinguish one society from another. A society’s culture determines how its members communicate and interact with each other. The basic elements of culture are social structure, language, communication, religion, and values and attitudes. Diff: 2

Skill: Synthesis
Objective: 1, 2

107) What is the difference between social structure and social stratification? How do these elements affect international business? Answer: Social structure is the overall framework that determines the roles of individuals within the society, the stratification of society, and individuals' mobility within the society. Social stratification refers to the categorization of people into a social hierarchy. MNCs may have to adapt their human resources policies or their marketing programs to adapt to a society's social stratification. Diff: 3

Skill: Critical Thinking
Objective: 2
Learning Outcome: Explain how differences in culture affect the international business environment

108) As a business student, do you think it is important that you learn a second language? Why or why not? Answer: Students that have been exposed to foreign languages have a better understanding of a culture than those who have not had this experience. Even a limited mastery of a foreign language provides clues about cultural norms and attitudes that could be helpful in business. Diff: 3

Skill: Critical Thinking
Objective: 2
Learning Outcome: Explain how differences in culture affect the international business environment

109) Describe the process of backtranslation. Why is it important in international business? Answer: Backtranslation refers to the translating of words from one language to a second language and then translating the same words from the second language back into the first. The technique ensures the intended message is actually being sent. Diff: 3

Skill: Application
Objective: 2
Learning Outcome: Explain how differences in culture affect the international business environment

110) Some experts assert that it is more difficult to conduct business in countries with religious diversity than in countries with a single, dominant religion. Do you agree with this statement? Why or why not? Answer: Firms that operate in countries characterized by religious diversity must accommodate the needs of their employees and customers by taking into account multiple religions, their holidays, dietary restrictions or customs, and so on. Diff: 3

AACSB: Multicultural and diversity understanding
Skill: Critical Thinking
Objective: 4
Learning Outcome: Explain how differences in culture affect the international business environment

111) Global Tech is an MNE with a production facility located in Saudi Arabia, which has a large population of Muslims. What accommodations will Global Tech most likely need to make for its Muslim workers? Answer: Muslim workers must be allowed to stop work for prayer and to observe their religious holidays. It may also be appropriate to allow Muslim workers to dress in accordance with Muslim traditions. Diff: 3

AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 4
Learning Outcome: Explain how differences in culture affect the international business environment

112) What time would an executive from Latin America and an executive from Canada expect a meeting scheduled for 2 pm to start? What is the best explanation for this difference? Answer: The executive from Canada would expect the meeting to start promptly at 2 pm, while the executive from Latin America might not expect the meeting to start until 2: 45 pm. In Anglo-Saxon cultures, the prevailing attitude is "time is money." Time represents the opportunity to produce more and to raise one’s income, so it is not to be wasted. Hospitality, family, and friendship are greater concerns in Latin America. Diff: 3

AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 4
Learning Outcome: Explain how differences in culture affect the international business environment

113) What is the difference between a high-context and low-context culture? Provide examples of each to illustrate your answer. Answer: Low-context cultures are explicit in nature. What is said or written is what is meant by the communicator. Anglo-Saxon countries, such as Canada, the United Kingdom, and the United States, and Germanic countries are good examples of low-context cultures. High-context cultures also use context as part of the communication method. One must consider the situation and other nonverbal cues to understand the full message. Examples are Arab countries and Japan. Diff: 3

AACSB: Multicultural and diversity understanding
Skill: Critical Thinking
Objective: 5
Learning Outcome: Explain how differences in culture affect the international business environment

114) What are cultural clusters? How does an international business benefit from understanding cultural clusters? Answer: Cultural clusters are clusters of countries with similar cultures. Many international businesses instinctively utilize the cultural cluster approach in formulating their internationalization strategies. U.S. firms’ first exporting efforts often focus on Canada and the United Kingdom. Similarly, many Spanish firms have chosen to focus their international expansion efforts on Spanish-speaking areas in the Americas. Closeness of culture may affect the form that firms use to enter foreign markets. Researchers have found, for example, that Canadian firms are more likely to enter the British market by establishing joint ventures with British firms because of the relative closeness of their national cultures. Diff: 3

AACSB: Dynamics of the global economy
Skill: Synthesis
Objective: 2, 5
Learning Outcome: Explain how differences in culture affect the international business environment

115) How does a long-term outlook differ from a short-term outlook? Answer: Countries with a long-term outlook recognize that it may be necessary to delay gratification and make investments for the future. Such countries look several years out in their planning. Countries with a short-term outlook emphasize immediate changes. Investments may not be made in the long-term future. Diff: 2

Skill: Application
Objective: 6

116) How do passive and aggressive goal behaviors differ?
Answer: People who exhibit aggressive goal behaviors place a high premium on material possessions, money, and assertiveness. People who exhibit passive goal behaviors place a higher value on social relationships, quality of life, and concern for others. Diff: 2

Skill: Application
Objective: 6

117) Why do you think nepotism is often encouraged in collectivist cultures but discouraged in individualistic cultures? Answer: Collectivist cultures recognize that the most trustworthy people for the positions are likely within one's own family. Further, caring for the family is a high priority. Individualist cultures emphasize the use of achievements rather than family connections to select people for jobs. Diff: 2

Skill: Critical Thinking
Objective: 6

118) How might the use of lifetime employment practices in Japanese firms serve as a response to the culture of uncertainty avoidance in Japan? What effect do you think these practices will have on Japan's future? Answer: Because the Japanese culture as a whole seeks to avoid uncertainty, it makes sense that Japanese people would prefer to avoid the uncertainty of what one's next job might be or even whether one will have another job. Lifetime employment eliminates that uncertainty. The seniority-based hierarchical system that served Japan well through the 1980s is now seen as frustrating the aspirations of younger Japanese workers, who find that promotion opportunities are blocked by older workers. The lifetime employment enjoyed by the older generations is becoming less common: Part-time and temporary workers account for a third of the labor force. Diff: 3

AACSB: Multicultural and diversity understanding
Skill: Critical Thinking
Objective: 6
Learning Outcome: Explain how differences in culture affect the international business environment

119) Why is relying on self-reference criterion problematic in international business? Provide an example to illustrate your answer. Answer: When dealing with a new culture, many international businesspeople make the mistake of relying on the self-reference criterion, the unconscious use of one’s own culture to help assess new surroundings. A U.S. salesperson who calls on a German customer in Frankfurt and asks about the customer’s family is acting politely according to U.S. culture—the salesperson’s reference point—but rudely according to German culture, thereby generating ill will and the potential loss of a customer. Diff: 3

AACSB: Multicultural and diversity understanding
Skill: Application
Objective: 7
Learning Outcome: Explain how differences in culture affect the international business environment

120) What is acculturation? How can international businesses improve the process of acculturation for their employees working abroad? Answer: Acculturation is the process by which people not only understand a foreign culture but also modify and adapt their behavior to make it compatible with that culture. These organizations should properly prepare employees who are going abroad. Preparations might include culture training, language training, and realistic previews of the new situation. Diff: 3

Skill: Application
Objective: 7
Learning Outcome: Explain how differences in culture affect the international business environment

121) What are the four characteristics of culture? How can an international manager adapt to a culture and develop cross-cultural literacy? Answer: Culture reflects learned behavior that is transmitted from one member of society to another, its elements are interrelated, it is adaptive and changes in response to the external forces that affect the society, and it is shared by members of the society. To be successful, international businesspeople traveling abroad must remember that they are the foreigners and must attempt to behave according to the rules of the culture at hand. There are numerous ways to obtain knowledge about other cultures to achieve cross-cultural literacy. The best and most common way, not surprisingly, is through personal experience that results from conducting business abroad—as part of either a business trip or a long-term assignment—or from nonbusiness travel. Many firms, such as Motorola, offer cross-cultural training programs to their employees headed for foreign assignments. Information about specific cultures can also be obtained from various published sources. Diff: 3

AACSB: Multicultural and diversity understanding
Skill: Synthesis
Objective: 1, 7
Learning Outcome: Explain how differences in culture affect the international business environment

122) How can an MNE use language as a competitive weapon? What role does language play in cultural cluster approach of international business? Answer: Communication is a critical part of business. When companies have a common language, communication is facilitated. So, for example, firms from English-speaking nations such as Australia and Canada will find it easier to conduct business in other English-speaking countries. In fact, the dominance of English as the language of business gives companies from English-speaking countries a competitive advantage. The cultural cluster approach is a technique for classifying and making sense of national cultures. Similarities exist among many cultures, thereby reducing some of the need to customize business practices to meet the demands of local cultures.Many clusters are based on language similarities, as is apparent in the Anglo, Germanic, Latin American, and Arab clusters. Many international businesses instinctively utilize the cultural cluster approach in formulating their internationalization strategies. U.S. firms’ first exporting efforts often focus on Canada and the United Kingdom. Hong Kong and Taiwanese firms have been very successful in exploiting China’s markets. Similarly, many Spanish firms have chosen to focus their international expansion efforts on Spanish-speaking areas in the Americas. Diff: 3

Skill: Synthesis
Objective: 2, 5
Learning Outcome: Explain how differences in culture affect the international business environment

123) How can firms minimize the chances of miscommunication through translation errors? Answer: It is important that translators be sensitive to the subtleties in the connotations of words and focus on translating ideas, not just actual words. Firms can also use backtranslation where one person translates a document and another translates the translated version back into the original language. By using this technique, firms can be sure that the intended message is actually being sent. When communications to nonnative speakers are in the home country language, writers should take care to use common words and avoid idiomatic phrases. Diff: 3

Skill: Application
Objective: 2
Learning Outcome: Explain how differences in culture affect the international business environment

124) How does religion affect international business practices and marketing programs? Answer: Religion affects the way members of a society relate to each other and to outsiders. About three-quarters of the world's population follow one of four religions: Christianity, Islam, Hinduism, and Buddhism. People's attitudes toward work, consumption, individual responsibility, and planning for the future are shaped by religion. Companies doing business in foreign countries must consider the influence of religion in their human resources practices and marketing programs. Diff: 2

Skill: Application
Objective: 4
Learning Outcome: Explain how differences in culture affect the international business environment

125) Identify five forms of nonverbal communication. Why are nonverbal forms of communication important in international business? Answer: Several possible answers are listed in Table 4.1. Some possibilities include hand gestures, facial expressions, posture and stance, clothing and hair styles, and interpersonal distances. Students should include a discussion of how people from different cultures might interpret nonverbal communications differently than they might be intended. Diff: 2

Skill: Application
Objective: 3
Learning Outcome: Explain how differences in culture affect the international business environment

126) Explain Hall's approach to characterizing culture.
Answer: Edward and Mildred Hall characterize culture using a low-context-high-context approach. In a low-context culture, a speaker's words explicitly convey a message to the listener, while in a high-context culture, the context in which a conversation takes place is just as important as the words that are actually being spoken. Diff: 2

Skill: Application
Objective: 5

127) Discuss the cultural cluster approach to making sense of national cultures. Answer: The cultural cluster approach suggests that a cultural cluster includes countries that share many cultural similarities. Countries that share similar cultural values can be expected to act in a similar way. For international companies, this approach suggests that firms could have be successful in markets similar to their own. So, U.S. firms might focus on exporting to Canada and the United Kingdom, while Spanish firms might focus on Spanish-speaking areas in the Americas. Diff: 2

Skill: Application
Objective: 5

128) What are the five cultural dimensions identified by Geert Hofstede? How might these differences trigger cross-cultural misunderstandings in international business? Answer: The dimensions are social orientation, power orientation, uncertainty orientation, goal orientation, and time orientation. Social orientation refers to a person's beliefs about the relative importance of the individual and the groups to which that person belongs. Power orientation refers to the beliefs people in a culture hold about the appropriateness of power and authority differences in hierarchies. Uncertainty orientation is the feeling people have regarding uncertain and ambiguous situations. Goal orientation is the manner in which people are motivated to work toward different kinds of goals. Time orientation is the extent to which members of a culture adopt a long-term versus a short-term outlook on work, life, and other aspects of a society. Students should emphasize how different beliefs when working with individuals from different countries or when dealing with firms in other countries can affect appropriate human resource strategies and decisions including work assignments, rewards and promotions, benefits, authority in the workplace, and schedules. Diff: 3

Skill: Synthesis
Objective: 6, 7
Learning Outcome: Explain how differences in culture affect the international business environment

129) How are the HR practices of MNEs affected by status systems and religious practices in certain cultures? Illustrate your answer with specific examples. Answer: Religion affects the business environment in other important ways. Often religions impose constraints on the roles of individuals in society. For example, the caste system of Hinduism traditionally has restricted the jobs individuals may perform, thereby affecting the labor market and foreclosing business opportunities. Countries dominated by strict adherents to Islam, such as Saudi Arabia, limit job opportunities for women, in the belief that their contact with adult males should be restricted to relatives. In India, status is affected by one’s caste. The caste system divides society into various groups including Brahmins (priests and intellectuals), Kshatriyas (soldiers and political leaders), Vaishyas (businesspeople), Sudras (farmers and workers), and untouchables, who perform the dirtiest and most unpleasant jobs. The power of the caste system in rural areas is slowly eroding due to government affirmative action policies and the growing scarcity of high-skilled employees needed by India’s high-tech industries. Infosys, for example, has been forced to broaden its recruiting efforts to 700 colleges, many of which are located in semirural areas where lower-caste individuals often live, in order to acquire the talented workers it requires. A decade ago, the high-tech firm could meet its hiring needs by recruiting at 50 Indian universities, most of which were located in urban areas. Diff: 3

AACSB: Multicultural and diversity understanding
Skill: Synthesis
Objective: 2, 4
Learning Outcome: Explain how differences in culture affect the international business environment

130) As an international manager, what business behaviors would you need to alter when operating in low-context cultures and high-context cultures? Illustrate your answer with specific examples. Answer: Business behaviors in high-context cultures often differ from those in low-context cultures. For example, German advertising is typically fact oriented, while Japanese advertising is more emotion oriented. High-context cultures place higher value on interpersonal relations in deciding whether to enter into a business arrangement. In such cultures preliminary meetings are often held to determine whether the parties can trust each other and work together comfortably. Low-context cultures place more importance on the specific terms of a transaction. In low-context cultures such as Canada, the United Kingdom, and the United States, lawyers are often present at negotiations to ensure that their clients’ interests are protected. Conversely, in high-context cultures such as Saudi Arabia, Japan, and Egypt, the presence of a lawyer, particularly at the initial meeting of the participants, would be viewed as a sign of distrust. Diff: 3

Skill: Application
Objective: 4
Learning Outcome: Explain how differences in culture affect the international business environment

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