International Management Culture Strategy and Behavior 10th Edition By Luthans - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below Chapter 05 Managing Across Cultures True/False Questions At Xiaomi, individual achievement is highly regarded. Answer: False Feedback: Collectivism and group achievement permeate Xiaomi's …
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International Management Culture Strategy and Behavior 10th Edition By Luthans – Test Bank
Instant Download – Complete Test Bank With Answers
Sample Questions Are Posted Below
Chapter 05
Managing Across Cultures
True/False Questions
Answer: False
Feedback: Collectivism and group achievement permeate Xiaomi’s corporate culture. From initial design to final production, collaboration between employees and the public is more celebrated than individual creativity.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 1 Easy
Topic: Introduction
Answer: True
Feedback: Firms with a polycentric predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 1 Easy
Topic: The Strategy for Managing across Cultures
Answer: False
Feedback: A company with an ethnocentric predisposition allows the values and interests of the parent company to guide strategic decisions. A regiocentric predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 1 Easy
Topic: The Strategy for Managing across Cultures
Answer: True
Feedback: A company with a geocentric predisposition tries to integrate a global systems approach to decision making.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 1 Easy
Topic: The Strategy for Managing across Cultures
Answer: True
Feedback: A firm with an ethnocentric predisposition may find it difficult to implement a geocentric strategy because it is unaccustomed to using global integration.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 2 Medium
Topic: The Strategy for Managing across Cultures
Answer: True
Feedback: A number of factors are moving companies to facilitate the development of unique strategies for different cultures. One of these factors is the difficulty of managing global organizations, as in the case of some local subsidiaries that want more decentralization and others that want less.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 1 Easy
Topic: The Strategy for Managing across Cultures
Answer: False
Feedback: In a low-context culture, insiders and outsiders are not readily distinguished. The latter are encouraged to join the inner circle.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 1 Easy
Topic: Cross-Cultural Differences and Similarities
Answer: False
Feedback: In a high-context culture, relationships between people are relatively long lasting. Individuals feel deep personal involvement with each other.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 1 Easy
Topic: Cross-Cultural Differences and Similarities
Answer: True
Feedback: In the United States, authority is diffused throughout the bureaucratic system and personal responsibility is hard to pin down.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 1 Easy
Topic: Cross-Cultural Differences and Similarities
Answer: False
Feedback: In Japan, compensation levels are determined by using the objective factors of age, length of service, and educational background rather than skill, ability, and performance. Performance does not count until after an employee reaches age 45.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 1 Easy
Topic: Cross-Cultural Differences and Similarities
Answer: False
Feedback: Recruitment and selection in Japanese firms often are designed to help identify those individuals who will do the best job over the long run. In the United States, people often are hired based on what they can do for the firm in the short run because many of them eventually will quit or be downsized.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 1 Easy
Topic: Cross-Cultural Differences and Similarities
Answer: False
Feedback: In Japan, unions are regarded as partners. In the United States, management and unions view each other in a much more adversarial way.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 1 Easy
Topic: Cross-Cultural Differences and Similarities
Answer: False
Feedback: When conducting business in China, one must realize that the Chinese are a collective society in which people pride themselves on being members of a group. Chinese people are very proud of their collective economic accomplishments and want to share these feelings with outsiders.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: True
Feedback: When conducting business in Russia, it is important to build personal relationships with partners. Business laws and contracts do not mean as much in Russia as they do in the West.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: False
Feedback: In the workplace, many French people are not motivated by competition or the desire to emulate fellow workers. They often are accused of not having as intense a work ethic as, for example, Americans or Asians.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: True
Feedback: In general, French employees give utmost importance to quality of life and do not derive much motivation from professional accomplishment. As a result, they attach a great deal of importance to leisure time, and many are unwilling to sacrifice the enjoyment of life for dedication to work.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: True
Feedback: Indians are very tolerant of outsiders and understand that many are unfamiliar with local customs and procedures. Therefore, there is no need to make a phony attempt to conform to Indian cultural traditions; making an effort to be polite and courteous is sufficient.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: True
Feedback: Chinese culture tends to value punctuality, so it is important that those who do business with them arrive on time. The issue of time is a major cultural difference between China and many Western countries.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: True
Feedback: In Arab countries, initial meetings typically are used to get to know the other party. Business-related discussions may not occur until the third or fourth meeting.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: False
Feedback: In contrast to the common perception among many Western businesspeople who have never been to an Arab country, it is not necessary to bring the other party a gift. If this is done, however, it should be a modest gift; a good example is a novelty or souvenir item from the visitor’s home country.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Multiple Choice Questions
Answer: A
Feedback: Product innovation helps Apple differentiate itself from its competitors. Having spent millions in research and development for new technology and improved designs, Apple has accused companies of essentially stealing patent-protected technology, and it has sued numerous companies to protect its intellectual property.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 2 Medium
Topic: Taking a Bite Out of Apple: Corporate Culture and an Unlikely Chinese Start-Up
Answer: D
Feedback: In the context of Xiaomi’s unconventional approach to design, crowd-sourcing is used as a key element of its strategy. End users provide input and feedback continuously to Xiaomi, shaping the direction in which Xiaomi takes it products.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 2 Medium
Topic: Taking a Bite Out of Apple: Corporate Culture and an Unlikely Chinese Start-Up
Answer: A
Feedback: In the context of product focus in the smartphone industry, maintaining first-mover advantage is an approach used by Apple to achieve success. As a result, Apple focuses narrowly on a few key products, with little variation in features and price.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 2 Medium
Topic: Taking a Bite Out of Apple: Corporate Culture and an Unlikely Chinese Start-Up
Answer: C
Feedback: Most multinational corporations have a cultural strategic predisposition toward doing things in a particular way, and four distinct predispositions have been identified: ethnocentric, polycentric, regiocentric, and geocentric. A company with a geocentric predisposition tries to integrate a global systems approach to decision making.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 1 Easy
Topic: The Strategy for Managing across Cultures
Answer: C
Feedback: A company with an ethnocentric predisposition allows the values and interests of the parent company to guide strategic decisions.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 1 Easy
Topic: The Strategy for Managing across Cultures
Answer: A
Feedback: Firms with a polycentric predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 1 Easy
Topic: The Strategy for Managing across Cultures
Answer: D
Feedback: A regiocentric predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 1 Easy
Topic: The Strategy for Managing across Cultures
Answer: B
Feedback: Despite the need for and, in general, the tendency of MNCs to address regional differentiation issues, many MNCs remain committed to a globalization imperative, which is a belief that one worldwide approach to doing business is the key to both efficiency and effectiveness.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 1 Easy
Topic: The Strategy for Managing across Cultures
Answer: B
Feedback: Firms with a polycentric predisposition have a strategy of national responsiveness.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 2 Medium
Topic: The Strategy for Managing across Cultures
Answer: B
Feedback: Firms with a geocentric predisposition have a global culture.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 1 Easy
Topic: The Strategy for Managing across Cultures
Answer: C
Feedback: A company with an ethnocentric predisposition allows the values and interests of the parent company to guide strategic decisions. A firm with an ethnocentric orientation repatriates profits to home country.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 1 Easy
Topic: The Strategy for Managing across Cultures
Answer: C
Feedback: Ethnocentric predisposition is most likely to have a top-down governance.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 1 Easy
Topic: The Strategy for Managing across Cultures
Answer: D
Feedback: The French avoid reasoning or logic. Their advertising is predominantly emotional, dramatic, and symbolic.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 2 Medium
Topic: The Strategy for Managing across Cultures
Answer: C
Feedback: Germans want advertising that is factual and rational; they fear being manipulated by “the hidden persuader.”
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 1 Easy
Topic: The Strategy for Managing across Cultures
Answer: A
Feedback: The British value laughter above all else. The typical broad, self-deprecating British commercial amuses by mocking both the advertiser and consumer.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 1 Easy
Topic: The Strategy for Managing across Cultures
Answer: D
Feedback: In France, spots are viewed as cultural events—art for the sake of money—and are reviewed as if they were literature or films.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 1 Easy
Topic: The Strategy for Managing across Cultures
Answer: D
Feedback: In a high-context culture, agreements tend to be spoken rather than written. Malaysia has what could be called a high-context culture.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 2 Medium
Topic: Cross-Cultural Differences and Similarities
Answer: A
Feedback: In low-context cultures, authority is diffused throughout the bureaucratic system. Personal responsibility is hard to pin down.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 2 Medium
Topic: Cross-Cultural Differences and Similarities
Answer: A
Feedback: In the context of the link between cultural clusters and compensation strategies high salaries should be paid to senior-level managers in high-masculinity cultures. Japan, Hong Kong, Malaysia, the Philippines, and Singapore have high-masculinity cultures.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 2 Medium
Topic: Cross-Cultural Differences and Similarities
Answer: A
Feedback: Parochialism is the tendency to view the world through one’s own eyes and perspectives.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 1 Easy
Topic: Cross-Cultural Differences and Similarities
Answer: C
Feedback: Unlike Americans, Japanese use group performance appraisal and reward people as a group. Traditionally, Americans use manager-subordinate performance appraisal and reward people as individuals.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 2 Medium
Topic: Cross-Cultural Differences and Similarities
Answer: D
Feedback: In the area of job design, the Japanese use a great deal of participative management and autonomous work teams. Also, the Americans are beginning to employ a similar approach.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 2 Medium
Topic: Cross-Cultural Differences and Similarities
Answer: A
Feedback: The scenario exemplifies simplification. It is the process of exhibiting the same orientation toward different cultural groups.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 2 Medium
Topic: Cross-Cultural Differences and Similarities
Answer: D
Feedback: Malaysia has what could be called a high-context culture.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 1 Easy
Topic: Cross-Cultural Differences and Similarities
Answer: B
Feedback: The United States has a low-context culture.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 1 Easy
Topic: Cross-Cultural Differences and Similarities
Answer: A
Feedback: The five criteria in the HAIRL acronym stood for helicopter, analysis, imagination, reality, and leadership.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 1 Easy
Topic: Cross-Cultural Differences and Similarities
Answer: B
Feedback: The country in which Shell’s operating company prioritized the HAIRL appraisal system by putting leadership at the top of the list and helicopter at the bottom was Germany.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 2 Medium
Topic: Cross-Cultural Differences and Similarities
Answer: B
Feedback: In Great Britain, Ireland, and the United States, managers value their individualism and are motivated by the opportunity for earnings, recognition, advancement, and challenge.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 2 Medium
Topic: Cross-Cultural Differences and Similarities
Answer: D
Feedback: Recruitment and selection in Japanese firms often are designed to help identify those individuals who will do the best job over the long run. A partially completed contingency matrix for international human resource management shows that recruitment and selection in Japan prepare for the long process, ensure that the firm is “here to stay,” and develop trusting relationship with a recruit.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 2 Medium
Topic: Cross-Cultural Differences and Similarities
Answer: B
Feedback: A partially completed contingency matrix for international human resource management shows that recruitment and selection processes in Mexico use expatriates sparingly and recruit Mexican nationals at U.S. colleges.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 2 Medium
Topic: Cross-Cultural Differences and Similarities
Answer: B
Feedback: A partially completed contingency matrix for international human resource management for labor relations shows that firms doing business in China should tap large pool of labor cities and be prepared that lax labor laws may become more stringent.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 2 Medium
Topic: Cross-Cultural Differences and Similarities
Answer: C
Feedback: A partially completed contingency matrix for international human resource management for labor relations shows that firms doing business in Germany should be prepared for high wages and short workweek and expect high productivity from unionized workers.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 2 Medium
Topic: Cross-Cultural Differences and Similarities
Answer: A
Feedback: A partially completed contingency matrix for international human resource management for compensation shows that firms doing business in China should use technical training as reward, recognize egalitarian values, and use “more work more pay” with caution.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 2 Medium
Topic: Cross-Cultural Differences and Similarities
Answer: B
Feedback: If Arabs commit themselves to a date in the future and fail to show up, they feel no guilt or concern because they believe they have no control over time in the first place. Arabs believe that Allah controls time.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: B
Feedback: French workers have a reputation for high productivity. Also, they work extremely hard in their regularly scheduled time.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 2 Medium
Topic: Cultural Differences in Selected Countries and Regions
Answer: D
Feedback: Understanding Indian values and beliefs is critical to doing business in India. Although most Indian businesspeople speak English, many of their values and beliefs are markedly different from those in the West.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 2 Medium
Topic: Cultural Differences in Selected Countries and Regions
Answer: D
Feedback: The People’s Republic of China (PRC or China, for short) has had a long tradition of isolation. In 1979, Deng Xiaoping opened this country to the world.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: C
Feedback: Experienced executives report that the primary criterion for doing business in China is technical competence.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: B
Feedback: An important dimension of Chinese culture is guanxi, which means “good connections.”
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: A
Feedback: In practice, guanxi resembles nepotism, where individuals in authority make decisions on the basis of family ties or social connections rather than objective indices.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: B
Feedback: Statistics show that on average, French workers have the longest vacations in the world, four to five weeks annually. They often are accused of not having as intense a work ethic as, for example, Americans or Asians, and many French workers frown on overtime.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: D
Feedback: Guanxi is an important dimension of the Chinese culture. It means “good connections.”
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: B
Feedback: The Indian culture is characterized by a universal method of greeting an equal by pressing one’s palms together in front of the chest and saying, “namaste.” This means “greetings to you.”
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: A
Feedback: Chinese culture tends to value punctuality, so it is important that those who do business with them arrive on time. The issue of time is a major cultural difference between China and many Western countries.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: B
Feedback: In Arab countries, a favorite expression is Bukra insha Allah, which means “Tomorrow if God wills.” This expression explains the fatalistic approach to time common to many Arab cultures.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: D
Feedback: Many in the United States believe that it is more difficult to get along with the French than with other Europeans.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: C
Feedback: In France, one’s social class is very important, and these classes include the aristocracy, the upper bourgeoisie, the upper-middle bourgeoisie, the middle, the lower middle, and the lower.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: A
Feedback: When doing business in Arab countries, one should keep in mind that mutual respect is required at all times. It is important never to criticize or berate anyone publicly; this causes the individual to lose face, and the same is true for the person who makes these comments.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 2 Medium
Topic: Cultural Differences in Selected Countries and Regions
Answer: A
Feedback: Most French organizations tend to be highly centralized and have rigid structures.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 1 Easy
Topic: Cultural Differences in Selected Countries and Regions
Answer: A
Feedback: When conducting business in Russia, it is important to build personal relationships with partners. Business laws and contracts do not mean as much in Russia as they do in the West.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 2 Medium
Topic: Cultural Differences in Selected Countries and Regions
Essay Questions
Answer: Most MNCs have a cultural strategic predisposition toward doing things in a particular way. Four distinct predispositions have been identified: ethnocentric, polycentric, regiocentric, and geocentric.
A company with an ethnocentric predisposition allows the values and interests of the parent company to guide strategic decisions. Firms with a polycentric predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates. A regiocentric predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis. A company with a geocentric predisposition tries to integrate a global systems approach to decision making.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.
Level of Difficulty: 2 Medium
Topic: The Strategy for Managing across Cultures
Answer: A high-context culture possesses characteristics such as: (1) Relationships between people are relatively long lasting, and individuals feel deep personal involvement with each other; (2) Communication often is implicit, and individuals are taught from an early age to interpret these messages accurately; (3) People in authority are personally responsible for the actions of their subordinates, and this places a premium on loyalty to both superiors and subordinates; (4) Agreements tend to be spoken rather than written; and (5) Insiders and outsiders are easily distinguishable, and outsiders typically do not gain entrance to the inner group.
AACSB: Analytic
Bloom’s: Remember
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 2 Medium
Topic: Cross-Cultural Differences and Similarities
Answer: Drawing on the work of Hofstede, it is possible to link cultural clusters and compensation strategies. Each cluster requires a different approach to formulating an effective compensation strategy: (1) In Pacific Rim countries, incentive plans should be group-based. In high-masculinity cultures (Japan, Hong Kong, Malaysia, the Philippines, Singapore), high salaries should be paid to senior-level managers; (2) In EU nations such as France, Spain, Italy, and Belgium, compensation strategies should be similar. In the latter two nations, however, significantly higher salaries should be paid to local senior-level managers because of the high masculinity index. In Portugal and Greece, both of which have a low individualism index, profit-sharing plans would be more effective than individual incentive plans, while in Denmark, the Netherlands, and Germany, personal-incentive plans would be highly useful because of the high individualism in these cultures; and (3) In Great Britain, Ireland, and the United States, managers value their individualism and are motivated by the opportunity for earnings, recognition, advancement, and challenge. Compensation plans should reflect these needs.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.
Level of Difficulty: 2 Medium
Topic: Cross-Cultural Differences and Similarities
Answer: Brazil was originally colonized by Portugal and remained affiliated with its parent country until 1865. Even though today Brazil is extremely multicultural, the country still demonstrates many attributes derived from its Portuguese heritage, including its official language. Brazilian businesspeople tend to have a relaxed work ethic, often respecting those who inherit wealth and have strong familial roots over those seeking entrepreneurial opportunities. They view time in a very relaxed manner, so punctuality is not a strong suit in this country. Overall, the people are very good-natured and tend to avoid confrontation, yet they seek out risky endeavors.
In Brazil, physical contact is acceptable as a form of communication. Additionally, face-to-face interaction is preferred as a way to communicate, so avoid simply e-mailing or calling. Appearance can be very important to Brazilian culture, as it will reflect both you and your company. When conducting business, men should wear conservative dark suits, shirts, and ties. Women should dress nicely but avoid too conservative or formal attire. Patience is key when managing business in Brazil. Expressing frustration or impatience and attempting to speed up procedures may lose the deal. Presentations should be informative and expressive, and consistency is important. It is common for Brazilian businesspeople to bring a lot of people to attend negotiations, mostly to observe and learn. Subsequent meetings may include members of higher management, requiring a rehashing of information.
AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 2 Medium
Topic: Cultural Differences in Selected Countries and Regions
Answer: Europeans and Americans often find it extremely hard to do business in Arab countries, and a number of Arab cultural characteristics can be cited for this difficulty. One is the Arab view of time. In Arab countries, a favorite expression is Bukra insha Allah, which means “Tomorrow if God wills,” an expression that explains the fatalistic approach to time common to many Arab cultures. As a result, if Arab businesspeople commit themselves to a date in the future and fail to show up, they may feel no guilt or concern because they believe they have no control over time in the first place. When conducting business in an Arab country, it is important to understand that culture generally holds that destiny depends more on the will of a supreme being than on the behavior of individuals. Social status is largely determined by family position and connections, not necessarily by accomplishments. Initial meetings typically are used to get to know the other party. Business-related discussions may not occur until the third or fourth meeting. It is not necessary to bring the other party a gift. If this is done, however, it should be a modest gift. Also, Arab businesspeople tend to attach a great deal of importance to status and rank. When meeting with them, one should pay deference to the senior person first. It also is important never to criticize or berate anyone publicly. Mutual respect is required at all times. AACSB: Analytic
Bloom’s: Understand
Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.
Level of Difficulty: 2 Medium
Topic: Cultural Differences in Selected Countries and Regions
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
