International Marketing 18Th Edition By Philip Cateora - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below International Marketing, 18e (Cateora) Chapter 5 Culture, Management Style, and Business Systems 1) Adaptation requires business executives to forsake their ways and change to local customs. …
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International Marketing 18Th Edition By Philip Cateora – Test Bank
Instant Download – Complete Test Bank With Answers
Sample Questions Are Posted Below
International Marketing, 18e (Cateora)
Chapter 5 Culture, Management Style, and Business Systems
1) Adaptation requires business executives to forsake their ways and change to local customs.
Answer: FALSE
Explanation: Adaptation does not require business executives to forsake their ways and change to local customs; rather, executives must be aware of local customs and be willing to accommodate those differences that can cause misunderstandings.
Difficulty: 2 Medium
Topic: Social Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
2) Kyle recently transferred to Norway and is working with Britt on a marketing idea, but their different approaches have created a quandary. If Kyle doesn’t understand Britt’s customs, he is more likely to evaluate Britt’s behavior by relying on what is familiar to her.
Answer: FALSE
Explanation: The self-reference criterion (SRC) is especially operative in business customs. If we do not understand our foreign counterpart’s customs, we are more likely to evaluate that person’s behavior in terms of what is familiar to us.
Difficulty: 2 Medium
Topic: Social Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
3) Electives are business customs to which adaptation is helpful but not necessary.
Answer: TRUE
Explanation: Business customs can be grouped into imperatives, customs that must be recognized and accommodated; electives, customs to which adaptation is helpful but not necessary; and exclusives, customs in which an outsider must not participate.
Difficulty: 1 Easy
Topic: Social Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
4) In order to be successful, a business should recognize and accommodate any cultural imperatives associated with a foreign entity.
Answer: TRUE
Explanation: Imperatives are business customs that must be recognized and accommodated. Apart from imperatives, business customs can be grouped into electives, customs to which adaptation is helpful but not necessary; and exclusives, customs in which an outsider must not participate.
Difficulty: 2 Medium
Topic: Social Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
5) The majority of business customs fit into the cultural elective category.
Answer: TRUE
Explanation: Cultural electives relate to areas of behavior or to customs that cultural aliens may wish to conform to or participate in but that are not required. The majority of customs fit into this category.
Difficulty: 1 Easy
Topic: Social Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
6) The “master of destiny” philosophy is based on the idea that individuals are not in control of their own futures but are at the mercy of decisions made by business and government.
Answer: FALSE
Explanation: The “master of destiny” philosophy is fundamental to U.S. management thought. Simply stated, people can substantially influence the future; they are in control of their own destinies.
Difficulty: 2 Medium
Topic: Social Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
7) The acceptance of the independent enterprise as an instrument of social action is a fundamental concept of U.S. corporations.
Answer: TRUE
Explanation: The acceptance of the idea that independent enterprise is an instrument for social action is the fundamental concept of U.S. corporations. A corporation is recognized as an entity that has rules and continuity of existence and is a separate and vital social institution. This recognition can result in strong feelings of obligation to serve the company. Indeed, the company may take precedence over family, friends, or activities that might detract from what is best for the company.
Difficulty: 2 Medium
Topic: Social Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
8) The notion that competition is crucial for efficiency, improvement, and regeneration is fundamental to Western management practices.
Answer: TRUE
Explanation: Perhaps most fundamental to Western management practices is the notion that competition is crucial for efficiency, improvement, and regeneration. Adam Smith in his The Wealth of Nations wrote one of the most important sentences in the English language: “By pursuing his own interests he frequently promotes that of the society more effectually than when he really intended to promote it.”
Difficulty: 1 Easy
Topic: Social Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
9) High Power Distance Index countries are more egalitarian than low Power Distance Index countries.
Answer: FALSE
Explanation: In high Power Distance Index (PDI) countries such as Mexico and Malaysia, understanding the rank and status of clients and business partners is much more important than in more egalitarian (low PDI) societies such as Denmark and Israel.
Difficulty: 2 Medium
Topic: Basic Decisions for Entering Foreign Markets
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
10) The three typical decision-making patterns are top-level management decisions, decentralized decisions, and committee or group decisions.
Answer: TRUE
Explanation: Although the international businessperson is confronted with a variety of authority patterns that can complicate decision making in the global environment, most are a variation of three typical patterns: top-level management decisions, decentralized decisions, and committee or group decisions.
Difficulty: 1 Easy
Topic: Basic Decisions for Entering Foreign Markets
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
11) Family-run businesses are more likely to follow the pattern of top-level management decision making.
Answer: TRUE
Explanation: Top-level management decision making is generally found in situations in which family or close ownership gives absolute control to owners and businesses are small enough to allow such centralized decision making.
Difficulty: 2 Medium
Topic: Basic Decisions for Entering Foreign Markets
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
12) In the committee decision setup, every committee member must be convinced of the merits of the proposition or product in question.
Answer: TRUE
Explanation: Committee decision making is by group or consensus. In the committee decision setup, every committee member must be convinced of the merits of the proposition or product in question.
Difficulty: 1 Easy
Topic: Basic Decisions for Entering Foreign Markets
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
13) Workers in countries higher in individualism and lower in power distance show more commitment to their companies than workers in countries with lower individualism and higher power distance.
Answer: FALSE
Explanation: Research has shown that commitment of workers to their companies tended to be lower in countries higher in individualism (IDV) and lower in power distance.
Difficulty: 2 Medium
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
14) High-context cultures place great importance on the verbal aspects of communication.
Answer: FALSE
Explanation: Communication in a high-context culture depends heavily on the contextual (who says it, when it is said, how it is said) or nonverbal aspects of communication, whereas the low-context culture depends more on explicit, verbally expressed communications.
Difficulty: 2 Medium
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
15) Businesspeople in low-context cultures use e-mail more often than those in high-context cultures.
Answer: TRUE
Explanation: E-mail use and usage rates by managers are also affected by culture. That is, businesspeople in high-context cultures do not use the medium to the same extent as those in low-context cultures. Much of the contextual information so important in high-context cultures simply cannot be signaled via the computer.
Difficulty: 1 Easy
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
16) Most North Americans operate on monochronic time.
Answer: TRUE
Explanation: M-time, or monochronic time, typifies most North Americans, Swiss, Germans, and Scandinavians. These Western cultures tend to concentrate on one thing at a time. They divide time into small units and are concerned with promptness. M-time is used in a linear way, and it is experienced as almost tangible, in that one saves time, wastes time, bides time, spends time, and loses time.
Difficulty: 1 Easy
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
17) Polychronic time is characterized by “a great involvement with people.”
Answer: TRUE
Explanation: P-time, or polychronic time, is more dominant in high-context cultures, where the completion of a human transaction is emphasized more than holding to schedules. P-time is characterized by the simultaneous occurrence of many things and by “a great involvement with people.” P-time allows for relationships to build and context to be absorbed as parts of high-context cultures.
Difficulty: 1 Easy
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
18) Being direct and wanting to get to the point are characteristics of a business person who operates in polychronic time.
Answer: FALSE
Explanation: The American desire to get straight to the point and get down to business is a manifestation of an M-time culture, as are other indications of directness. The P-time system gives rise to looser time schedules, deeper involvement with individuals, and a wait-and-see-what-develops attitude.
Difficulty: 2 Medium
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
19) Currently in most international businesses, women represent a small percentage of the employees who are chosen for an international assignment.
Answer: TRUE
Explanation: Although women now constitute 57 percent of the professional and technical U.S. workforce, they represent relatively small percentages of the employees who are chosen for international assignments—less than 20 percent.
Difficulty: 1 Easy
Topic: Ethical Decision Making
Learning Objective: 05-03 The extent and implications of gender bias in other countries.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
20) The business community’s defense against payoffs was that they were a way of life throughout the world.
Answer: TRUE
Explanation: The issue took on proportions greater than that of nondisclosure because it focused national attention on the basic question of ethics. The business community’s defense was that payoffs were a way of life throughout the world: If you didn’t pay bribes, you didn’t do business.
Difficulty: 1 Easy
Topic: Ethical Decision Making
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
21) The distinction between bribery and extortion depends on whether the activity resulted from an offer or from a demand for payment.
Answer: TRUE
Explanation: The distinction between bribery and extortion depends on whether the activity resulted from an offer or from a demand for payment. Voluntarily offered payment by someone seeking unlawful advantage is bribery. It is extortion if payments are extracted under duress by someone in authority from a person seeking only what he or she is lawfully entitled to.
Difficulty: 1 Easy
Topic: Ethical Decision Making
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
22) Subornation payments accompany requests for a person to do a job more rapidly or more efficiently.
Answer: FALSE
Explanation: Lubrication payments accompany requests for a person to do a job more rapidly or more efficiently; subornation is a request for officials to turn their heads, to not do their jobs, or to break the law.
Difficulty: 2 Medium
Topic: Ethical Decision Making
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
23) The form of bribery known as lubrication is common in some countries and involves giving a small sum of cash or a gift to a low-ranking public official.
Answer: TRUE
Explanation: Lubrication payments accompany requests for a person to do a job more rapidly or more efficiently. Lubrication involves a relatively small sum of cash, a gift, or a service given to a low-ranking official in a country where such offerings are not prohibited by law.
Difficulty: 2 Medium
Topic: Ethical Decision Making
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
24) Utilitarian ethics is the ethical principle that focuses on the optimization of the “common good.”
Answer: TRUE
Explanation: Three ethical principles also provide a framework to help the marketer distinguish between right and wrong, determine what ought to be done, and properly justify his or her actions. They are as follows: Utilitarian ethics: Does the action optimize the “common good” or benefits of all constituencies? And who are the pertinent constituencies? Rights of the parties: Does the action respect the rights of the individuals involved? Justice or fairness: Does the action respect the canons of justice or fairness to all parties involved?
Difficulty: 2 Medium
Topic: Ethical Decision Making
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
25) When comparing performance of American, German, and Japanese firms, in less individualistic cultures, labor and management generally do not get along.
Answer: FALSE
Explanation: In the less individualistic cultures, labor and management cooperate—in Germany labor is represented on corporate boards, and in Japan, management takes responsibility for the welfare of the labor force. The individualistic American approach to labor–management relations is adversarial—each side takes care of itself.
Difficulty: 2 Medium
Topic: Elements of Culture
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
26) A distinguishing characteristic of the type of capitalism common in Chinese culture is the emphasis on guanxi as the coordinating principle among firms.
Answer: TRUE
Explanation: A fourth kind of capitalism is common in Chinese cultures. Its distinguishing characteristics are a more entrepreneurial approach and an emphasis on guanxi (one’s network of personal connections) as the coordinating principle among firms.
Difficulty: 1 Easy
Topic: Elements of Culture
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
27) Chinese cultures are high on Power Distance Index and low on Individualism/Collective Index.
Answer: TRUE
Explanation: Chinese cultures are high on Power Distance Index (PDI) and low on Individualism/Collective Index (IDV), and the strong reciprocity implied by the notion of guanxi fits the available data well.
Difficulty: 1 Easy
Topic: Elements of Culture
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
28) High-context cultures score high on power distance and low on individualism.
Answer: TRUE
Explanation: Low-context American culture scores relatively low on power distance and high on individualism, whereas high-context Arab cultures score high on power distance and low on individualism.
Difficulty: 2 Medium
Topic: Elements of Culture
Learning Objective: 05-05 The differences between relationship-oriented and information-oriented cultures.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
29) The most managerially useful aspect of the synthesis of cultural differences is that it allows us to make predictions about unfamiliar cultures.
Answer: TRUE
Explanation: The most managerially useful aspect of this synthesis of cultural differences is that it allows us to make predictions about unfamiliar cultures. Managers who can do so—and manage uncertainty well—have been shown to be much more effective in cross-cultural situations.
Difficulty: 1 Easy
Topic: Elements of Culture
Learning Objective: 05-05 The differences between relationship-oriented and information-oriented cultures.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
30) Japan is considered a relationship-oriented culture because it achieves efficiency through competition and is linguistically direct.
Answer: FALSE
Explanation: Japan is considered a relationship-oriented culture because it is linguistically indirect and background focused. Japanese culture is high context, collectivistic, high power distance, far from English, polychronic (in part), linguistically indirect, and background focused, and it achieves efficiency through reduction of transaction costs.
Difficulty: 1 Easy
Topic: Elements of Culture
Learning Objective: 05-05 The differences between relationship-oriented and information-oriented cultures.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
31) What is a criterion for adaptation when dealing with individuals, firms, or authorities in foreign countries?
Answer: D
Explanation: As a guide to adaptation, all who wish to deal with individuals, firms, or authorities in foreign countries should be able to meet 10 basic criteria: (1) open tolerance, (2) flexibility, (3) humility, (4) justice/fairness, (5) ability to adjust to varying tempos, (6) curiosity/ interest, (7) knowledge of the country, (8) liking for others, (9) ability to command respect, and (10) ability to integrate oneself into the environment.
Difficulty: 1 Easy
Topic: Basic Decisions for Entering Foreign Markets
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
32) Marilee understands that if she wants her U.S.-based company to flourish in Italy, she must be tolerant of Italian customs and norms that might differ from what she deals with in the United States and also be humble and not assume that her current way of doing business is the only way to do business. What characteristic is Marilee demonstrating?
Answer: A
Explanation: Adaptation is a key concept in international marketing, and willingness to adapt is a crucial attitude. Marilee is demonstrating adaptability by being tolerant and humble.
Difficulty: 2 Medium
Topic: Basic Decisions for Entering Foreign Markets
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
33) What are the three categories of business customs?
Answer: C
Explanation: Business customs can be grouped into imperatives, customs that must be recognized and accommodated; electives, customs to which adaptation is helpful but not necessary; and exclusives, customs in which an outsider must not participate.
Difficulty: 1 Easy
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
34) Reggie owns a small stationery company in Tennessee and plans to enter the French market to sell his line of fine linen papers. He realizes that there are many business customs he will need to understand and conform to in order to succeed in France. What type of business custom is Reggie concerned with?
Answer: E
Explanation: Cultural imperatives are the business customs and expectations that must be met and conformed to or avoided if relationships are to be successful.
Difficulty: 2 Medium
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
35) Business customs that must be recognized and accommodated are called
Answer: A
Explanation: Business customs can be grouped into imperatives, customs that must be recognized and accommodated; electives, customs to which adaptation is helpful but not necessary; and exclusives, customs in which an outsider must not participate.
Difficulty: 1 Easy
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
36) Jenna does not drink alcohol and when she meets clients for dinner she knows that while the client might enjoy a glass of wine with the meal, she is not required to. What type of business custom does this illustrate?
Answer: B
Explanation: Business customs can be grouped into imperatives, customs that must be recognized and accommodated; electives, customs to which adaptation is helpful but not necessary; and exclusives, customs in which an outsider must not participate.
Difficulty: 2 Medium
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
37) Business customs in which an outsider must not participate are called
Answer: C
Explanation: Business customs can be grouped into imperatives, customs that must be recognized and accommodated; electives, customs to which adaptation is helpful but not necessary; and exclusives, customs in which an outsider must not participate.
Difficulty: 1 Easy
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
38) ________ would most likely be characterized as being an imperative business custom in many cultures.
Answer: A
Explanation: Establishing friendship is an imperative in many cultures. If friendship is not established, the marketer risks not earning trust and acceptance, the basic cultural prerequisites for developing and retaining effective business relationships.
Difficulty: 2 Medium
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
39) Manuel Tores, a senior manager at Crawford Export Logistics, goes to France to negotiate a deal with the company’s French partners. He dresses casually in a t-shirt and jeans. His French counterparts call off the meeting and accuse him of taking a casual attitude toward negotiations. In this scenario, dressing formally during business meetings is probably a cultural ________ for the French.
Answer: A
Explanation: Manuel Tores has to dress more formally for the negotiation meeting because it is a cultural imperative for his French counterparts. Cultural imperatives are the business customs and expectations that must be met and conformed to or avoided if relationships are to be successful.
Difficulty: 3 Hard
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Apply
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
40) Nina McRidder became an embarrassment to her company when she joked about the ruling monarchy in England in front of a group of visiting English businesspeople. She should have known that political ridicule by a foreigner is rarely accepted. Ms. McRidder has violated what is known as a cultural
Answer: C
Explanation: By joking about the ruling monarchy in England in front of a group of visiting English businesspeople, Nina McRidder has violated the cultural exclusive reserved only for the British people. Cultural exclusives are those customs or behavior patterns reserved exclusively for the locals and from which the foreigner is barred.
Difficulty: 3 Hard
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Apply
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
41) While bowing to another person is a ritual among the Japanese, it is not expected for a Westerner to bow or to understand this ritual. In other words, bowing would be considered a cultural
Answer: A
Explanation: Japanese do not expect a Westerner to bow and to understand the ritual of bowing among Japanese, yet a symbolic bow indicates interest and some sensitivity to Japanese culture that is acknowledged as a gesture of goodwill. Bowing is a cultural elective because it is not required of someone who is alien to the culture.
Difficulty: 2 Medium
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
42) The management team selected Sarah to attend the meeting with the new foreign-based company because she demonstrates tolerance, can easily adjust to changes in work tempos, and always promotes justice and fairness. Sarah has the qualities necessary for
Answer: D
Explanation: As a guide to adaptation, all who wish to deal with individuals, firms, or authorities in foreign countries should be able to meet 10 basic criteria: (1) open tolerance, (2) flexibility, (3) humility, (4) justice/fairness, (5) ability to adjust to varying tempos, (6) curiosity/interest, (7) knowledge of the country, (8) liking for others, (9) ability to command respect, and (10) ability to integrate oneself into the environment.
Difficulty: 2 Medium
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
43) Which philosophical view of U.S. management recognizes that people influence the future to a large extent and that they control their own fates?
Answer: C
Explanation: The “master of destiny” philosophy is fundamental to U.S. management thought. Simply stated, people can substantially influence the future; they are in control of their own destinies. This viewpoint also reflects the attitude that though luck may influence an individual’s future, on balance, persistence, hard work, a commitment to fulfill expectations, and effective use of time give people control of their destinies.
Difficulty: 1 Easy
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
44) According to the “master of destiny” viewpoint, what is one thing that determines a person’s destiny?
Answer: C
Explanation: The “master of destiny” philosophy is fundamental to U.S. management thought. Simply stated, people can substantially influence the future; they are in control of their own destinies. This viewpoint also reflects the attitude that though luck may influence an individual’s future, on balance, persistence, hard work, a commitment to fulfill expectations, and effective use of time give people control of their destinies.
Difficulty: 1 Easy
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
45) Which of the following is consistent with the American view of the independent enterprise?
Answer: B
Explanation: The acceptance of the idea that independent enterprise is an instrument for social action is the fundamental concept of U.S. corporations. A corporation is recognized as an entity that has rules and continuity of existence and is a separate and vital social institution.
Difficulty: 2 Medium
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
46) In many companies in the United States, people feel that individuals control their own destinies and because of this companies should select and reward employees based on
Answer: A
Explanation: Consistent with the view that individuals control their own destinies is the belief that personnel selection and reward must be made on merit. The selection, promotion, motivation, or dismissal of personnel by U.S. managers emphasizes the need to select the best-qualified persons for jobs, retaining them as long as their performance meets standards of expectations and continuing the opportunity for upward mobility as long as those standards are met.
Difficulty: 2 Medium
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
47) Adam Smith in his The Wealth of Nations stated, “By pursuing his own interest he frequently promotes that of the society more effectually than when he really intended to promote it.” What behavior does this notion attempt to justify?
Answer: D
Explanation: Adam Smith in his The Wealth of Nations wrote one of the most important sentences in the English language: “By pursuing his own interests he frequently promotes that of the society more effectually than when he really intended to promote it.” This “invisible hand” notion justifies competitive behavior because it improves society and its organizations.
Difficulty: 2 Medium
Topic: How Resources and Capabilities Influence Competitive Dynamics
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
48) The notion that ________ is crucial for efficiency, improvement, and regeneration is fundamental to Western management practices.
Answer: D
Explanation: Fundamental to Western management practices is the notion that competition is crucial for efficiency, improvement, and regeneration.
Difficulty: 1 Easy
Topic: How Resources and Capabilities Influence Competitive Dynamics
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
49) The Jensen family has owned Jensen’s Country Furnishings since 1987 and Delores and Frank Jensen, grandparents and founders, make all of the business decisions. What type of decision-making pattern does this reflect?
Answer: E
Explanation: Top-level management decision making is generally found in situations in which family or close ownership gives absolute control to owners and businesses are small enough to allow such centralized decision making. Decision-making participation by middle management tends to be deemphasized; dominant family members make decisions that tend to please the family members more than to increase productivity.
Difficulty: 2 Medium
Topic: Training and Management Development
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
50) As businesses grow and professional management develops, there is a shift toward what form of decision making?
Answer: B
Explanation: As businesses grow and professional management develops, there is a shift toward decentralized management decision making. Decentralized decision making allows executives at different levels of management to exercise authority over their own functions.
Difficulty: 2 Medium
Topic: Training and Management Development
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
51) A characteristic of committee decision making is that
Answer: E
Explanation: Committee decision making is by group or consensus. Committees may operate on a centralized or decentralized basis, but the concept of committee management implies something quite different from the individualized functioning of the top management and decentralized decision-making arrangements.
Difficulty: 2 Medium
Topic: Training and Management Development
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
52) Which form of business decision making is predominant in most Asian countries?
Answer: D
Explanation: Because Asian cultures and religions tend to emphasize harmony and collectivism, group decision making predominates there. Despite the emphasis on rank and hierarchy in Japanese social structure, business emphasizes group participation, group harmony, and group decision making—but at the top management level.
Difficulty: 1 Easy
Topic: Training and Management Development
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
53) In ________ decision making, title or position generally takes precedence over the individual holding the job.
Answer: B
Explanation: Decentralized decision making allows executives at different levels of management to exercise authority over their own functions, and title or position generally takes precedence over the individual holding the job.
Difficulty: 1 Easy
Topic: Training and Management Development
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
54) Companies in the more hierarchical countries of France and Italy tend to have strong paternalistic orientations, which means that
Answer: A
Explanation: European companies, particularly in the more hierarchical (Power Distance Index) countries, such as France and Italy, have a strong paternalistic orientation, and it is assumed that individuals will work for one company for the majority of their lives.
Difficulty: 2 Medium
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
55) In his study on the personal lives of professionals, David McClelland found that in ancient Greece work was considered
Answer: D
Explanation: In his seminal worldwide study of individual aspirations, David McClelland discovered that the culture of some countries stressed the virtue of a good personal life as far more important than profit or achievement. The hedonistic outlook of ancient Greece explicitly included work as an undesirable factor that got in the way of the search for pleasure or a good personal life.
Difficulty: 1 Easy
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
56) Research has shown that commitment of workers to their companies tended to be higher in countries
Answer: C
Explanation: Research has shown such differences to be general—commitment of workers to their companies tended to be higher in countries lower in individualism (IDV) and higher in power distance (PDI).
Difficulty: 1 Easy
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
57) According to Max Weber, at least part of the standard of living in the United States today can be attributed to the
Answer: A
Explanation: According to Max Weber, at least part of the standard of living that we enjoy in the United States today can be attributed to the hard-working Protestant ethic from which we derive much of our business heritage.
Difficulty: 1 Easy
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
58) Which form of communication is more important in a low-context culture?
Answer: A
Explanation: Communication in a high-context culture depends heavily on the contextual (who says it, when it is said, how it is said) or nonverbal aspects of communication, whereas the low-context culture depends more on explicit, verbally expressed communications.
Difficulty: 1 Easy
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Remember
AACSB: Communication
Accessibility: Keyboard Navigation
59) According to the high-context/low-context continuum identified by Edward T. Hall, communication in a low-context culture depends on
Answer: E
Explanation: Communication in a high-context culture depends heavily on the contextual (who says it, when it is said, how it is said) or nonverbal aspects of communication, whereas the low-context culture depends more on explicit, verbally expressed communications.
Difficulty: 2 Medium
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
60) Fredrick Keeble, an American manager, took his Swiss client out for a traditional American dinner. The client did not seem to eat much. After dinner, he asked his client if he had enjoyed the dinner. Which of the following responses would indicate that the client comes from a low-context culture?
Answer: A
Explanation: By replying “No, I did not like the food,” the client exhibits his low-context culture of being linguistically direct. People from low-context cultures deliver their opinion without much social padding.
Difficulty: 3 Hard
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Apply
AACSB: Communication
Accessibility: Keyboard Navigation
61) It is estimated that 78 percent of today’s website content is written in English, yet not every person in the world can read or understand English. What solution does the text suggest to make website content more universal?
Answer: C
Explanation: Estimates are that 78 percent of today’s website content is written in English, but an English e-mail message cannot be understood by 35 percent of all Internet users. The solution to the problem is to have country-specific websites, like those of IBM and Marriott.
Difficulty: 1 Easy
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Remember
AACSB: Communication
Accessibility: Keyboard Navigation
62) France is higher on Hofstede’s Power Distance Index (PDI) than the United States and formality is evident in French businesses. Which of the following American business practices would be most unacceptable to the French?
Answer: D
Explanation: While using first names in business encounters is regarded as an American vice in many countries, nowhere is it found more offensive than in France. France is higher on Hofstede’s Power Distance Index (PDI) than the United States, and such differences can lead to cultural misunderstandings.
Difficulty: 2 Medium
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Communication
Accessibility: Keyboard Navigation
63) ________ is probably the most common mistake of North Americans attempting to trade in the Middle East.
Answer: C
Explanation: Haste and impatience are probably the most common mistakes of North Americans attempting to trade in the Middle East. Most Arabs do not like to embark on serious business discussions until after two or three opportunities to meet the individual they are dealing with: negotiations are likely to be prolonged. Arabs may make rapid decisions once they are prepared to do so, but they do not like to be rushed, and they do not like deadlines.
Difficulty: 1 Easy
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Remember
AACSB: Communication
Accessibility: Keyboard Navigation
64) A ________ time system typifies Western cultures like most North Americans, Swiss, Germans, and Scandinavians and causes them to concentrate on one thing at a time.
Answer: D
Explanation: M-time, or monochronic time, typifies most North Americans, Swiss, Germans, and Scandinavians. These Western cultures tend to concentrate on one thing at a time. They divide time into small units and are concerned with promptness. M-time is used in a linear way, and it is experienced as almost tangible, in that one saves time, wastes time, bides time, spends time, and loses time.
Difficulty: 1 Easy
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
65) ________ time is more dominant in high-context cultures and provides time for relationships to build.
Answer: A
Explanation: Most low-context cultures operate on M-time. P-time, or polychronic time, is more dominant in high-context cultures, where the completion of a human transaction is emphasized more than holding to schedules. P-time is characterized by the simultaneous occurrence of many things and by “a great involvement with people.”
Difficulty: 2 Medium
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
66) What is a characteristic of a polychronic time schedule?
Answer: A
Explanation: The American desire to get straight to the point and get down to business is a manifestation of an M-time culture, as are other indications of directness. The P-time system gives rise to looser time schedules, deeper involvement with individuals, and a wait-and-see-what-develops attitude.
Difficulty: 2 Medium
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Diversity
Accessibility: Keyboard Navigation
67) People in Brazil describe themselves as late arrivers, allow greater flexibility in defining early and late, are less concerned about being late, and are more likely to blame external factors for their delay. Which system of time do the Brazilian people most likely operate on?
Answer: A
Explanation: The P-time system gives rise to looser time schedules, simultaneous occurrence of many things, deeper involvement with individuals, and a wait-and-see-what-develops attitude. P-time allows for relationships to build and context to be absorbed as parts of high-context cultures.
Difficulty: 2 Medium
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
68) When compared to people operating on P-time, people operating on M-time
Answer: E
Explanation: M-time, or monochronic time, typifies most North Americans, Swiss, Germans, and Scandinavians. These Western cultures tend to concentrate on one thing at a time.
Difficulty: 2 Medium
Topic: Social Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
69) The marketing orientation at KB Komponents is based on the belief that consumers and businesses alike will not buy enough without some prodding on the part of the company. Which marketing orientation does this demonstrate?
Answer: E
Explanation: A firm whose marketing orientation is based on the belief that consumers and businesses alike will not buy enough without prodding is selling oriented.
Difficulty: 3 Hard
Topic: Differences Between Domestic and International Marketing
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Apply
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
70) At Norton Manufacturing Corporation, it is believed that consumers want products that provide the best quality and have innovative features. Which marketing orientation does this company use?
Answer: B
Explanation: The extent of a company’s marketing orientation has been shown to relate positively to profits. Although American companies are increasingly embracing this notion (and marketing in general), firms in other countries have not been so fast to change from the more traditional production (consumers prefer products that are widely available), product (consumers favor products that offer the best quality, performance, or innovative features), and selling (consumers and businesses alike will not buy enough without prodding) orientations.
Difficulty: 2 Medium
Topic: Differences Between Domestic and International Marketing
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
71) When considering the role of time in business, which of the following is true of P-time and M-time?
Answer: D
Explanation: The important thing for the U.S. manager to learn is adjustment to P-time in order to avoid the anxiety and frustration that comes from being out of synchronization with local time. As global markets expand, however, more businesspeople from P-time cultures are adapting to M-time.
Difficulty: 2 Medium
Topic: Elements of Culture
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
72) Which of the following best explains the low percentage of women chosen for international assignments in the United States?
Answer: D
Explanation: The gender bias against female managers that exists in some countries, coupled with myths harbored by male managers, creates hesitancy among U.S. multinational companies to offer women international assignments. The most frequently cited reason is the inability for women to succeed abroad. Unfortunately, such attitudes are shared by many and probably stem from the belief that the traditional roles of women in male-dominated societies preclude women from establishing successful relationships with host-country associates.
Difficulty: 2 Medium
Topic: Social Culture
Learning Objective: 05-03 The extent and implications of gender bias in other countries.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
73) While most European countries are comparable to the United States in terms of the number of women in managerial positions, ________ stands out as the country that is drastically different with only 13 percent of management jobs held by women.
Answer: C
Explanation: The number of women in managerial positions (all levels) in most European countries, except Germany, is comparable to the United States. In Germany, the picture is different. According to one business news source, German female executives hold just 13 percent of management jobs (in companies over 500 employees) and meet stiff resistance from their male counterparts when they vie for upper-level positions.
Difficulty: 1 Easy
Topic: Social Culture
Learning Objective: 05-03 The extent and implications of gender bias in other countries.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
74) Kenneth is a bank executive and when one of his customers offers him box seats to a Chicago Cubs game he knows he cannot accept them because it is not appropriate to do so. However, in some countries of the world this gift would be perfectly acceptable. This reflects a difference in
Answer: D
Explanation: That which is commonly accepted as right in one country’s business practices may be completely unacceptable in another. Business ethics provide the guidelines for this difference.
Difficulty: 2 Medium
Topic: Ethical Issues in International Business
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
75) Which organization conducts an international survey of businesspeople, political analysts, and the general public on corruption and compiles the Corruption Perception Index (CPI)?
Answer: D
Explanation: Among its various activities, TI conducts an international survey of businesspeople, political analysts, and the general public to determine their perceptions of corruption in 182 countries in the Corruption Perception Index (CPI).
Difficulty: 1 Easy
Topic: Ethical Decision Making
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
76) What is true of the findings of Transparency International’s Corruption Perception Index (CPI)?
Answer: C
Explanation: Transparency International’s CPI is also proving useful in academic studies of the causes and consequences of bribery. Higher levels of bribery have been found in low-income nations and nations with a communist past, both aspects of the political economy.
Difficulty: 2 Medium
Topic: Ethical Decision Making
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
77) Marcus is the director of a small company in Boston. He is trying to obtain parts from a manufacturer in Taiwan but that company is unwilling to send them because of government regulations limiting exports on small orders. Marcus calls the head of the manufacturing company and says he will pay him an extra $5,000 if he ships them anyway. What practice is Marcus using to obtain the parts?
Answer: E
Explanation: Voluntarily offered payment by someone seeking unlawful advantage is bribery. The decision to pay a bribe creates a major conflict between what is ethical and proper and what appears to be profitable and sometimes necessary for business. Many global competitors perceive payoffs as a necessary means to accomplish business goals.
Difficulty: 2 Medium
Topic: Ethical Issues in International Business
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
78) Academic studies of the causes and consequences of bribery, conducted by Transparency International (TI), indicate corruption is greater in
Answer: E
Explanation: According to studies conducted by Transparency International, higher levels of bribery have been found in low-income nations and nations with a communist past, both aspects of the political economy. Additionally, higher levels of bribery have been found in collectivistic (IDV) and high power distance (PDI) countries.
Difficulty: 1 Easy
Topic: Ethical Issues in International Business
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
79) Which aspect of Japanese culture, predicted by many to favor bribery, makes Japan’s success in reducing corruption more remarkable?
Answer: A
Explanation: Japan’s successes in reducing corruption in its business system are all the more remarkable because of its relationship-oriented culture, which would be predicted by many to favor bribery.
Difficulty: 2 Medium
Topic: Ethical Issues in International Business
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
80) ________ occurs when payments are extracted under duress by someone in authority from a person seeking only what he or she is lawfully entitled to.
Answer: A
Explanation: Extortion occurs when payments are extracted under duress by someone in authority from a person seeking only what he or she is lawfully entitled to.
Difficulty: 1 Easy
Topic: Ethical Issues in International Business
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
81) ________ involves a relatively small sum of cash, a gift, or a service that is intended to facilitate or expedite the normal, lawful performance of a duty by an official.
Answer: C
Explanation: Lubrication involves a relatively small sum of cash, a gift, or a service given to a low-ranking official in a country where such offerings are not prohibited by law. The purpose of such a gift is to facilitate or expedite the normal, lawful performance of a duty by that official.
Difficulty: 1 Easy
Topic: Ethical Issues in International Business
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
82) The finance minister of a developing country demands a heavy payment for the approval of a multimillion dollar contract with a foreign company. This demand for the lump sum payment is called
Answer: A
Explanation: The distinction between bribery and extortion depends on whether the activity resulted from an offer or from a demand for payment. It is extortion if payments are extracted under duress by someone in authority from a person seeking only what he or she is lawfully entitled to.
Difficulty: 2 Medium
Topic: Ethical Issues in International Business
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
83) ________ generally involves giving large sums of money—frequently not properly accounted for—designed to entice an official to commit an illegal act on behalf of the one offering the bribe.
Answer: D
Explanation: Subornation generally involves giving large sums of money—frequently not properly accounted for—designed to entice an official to commit an illegal act on behalf of the one offering the bribe. Whereas, lubrication payments accompany requests for a person to do a job more rapidly or more efficiently.
Difficulty: 1 Easy
Topic: Ethical Issues in International Business
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
84) Kim is the director of operations at her company and hires an agent to obtain a license to build a warehouse in an industrial district. The agent gets caught offering a bribe to a government official for issue of the license. Which of the following describes Kim’s liabilities?
Answer: D
Explanation: The Foreign Corrupt Practices Act (FCPA) prohibits U.S. businesses from paying bribes openly or using intermediaries as conduits for a bribe when the U.S. manager knows that part of the intermediary’s payment will be used as a bribe.
Difficulty: 2 Medium
Topic: Ethical Issues in International Business
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
85) Which ethical principle tries to optimize the “common good” or benefits of all constituencies?
Answer: D
Explanation: Three ethical principles provide a framework to help the marketer distinguish between right and wrong, determine what ought to be done, and properly justify his or her actions. Simply stated, they are as follows: (1) Utilitarian ethics: Does the action optimize the “common good” or benefits of all constituencies? And who are the pertinent constituencies? (2) Rights of the parties: Does the action respect the rights of the individuals involved? (3) Justice or fairness: Does the action respect the canons of justice or fairness to all parties involved?
Difficulty: 1 Easy
Topic: Ethical Decision Making
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Remember
AACSB: Ethics
Accessibility: Keyboard Navigation
86) Many companies are now practicing strategic philanthropy which means that they
Answer: C
Explanation: Social responsibility is climbing ever higher on many corporate agendas these days. But whereas in the past, companies may have given cash donations to nongovernmental organizations (NGOs), a new trend is now emerging. Known generally as strategic philanthropy, it usually involves companies applying their expertise or products to sponsorship projects, targeted at local communities or specific segments of the population.
Difficulty: 2 Medium
Topic: Ethical Issues in International Business
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
87) According to Lester Thurow, in the British–American “individualistic” kind of capitalism, relationships among government, management, and labor in business systems are
Answer: D
Explanation: Thurow distinguished between the British–American “individualistic” kind of capitalism and the “communitarian” form of capitalism in Japan and Germany. The business systems in the latter two countries are typified by cooperation among government, management, and labor, particularly in Japan. Contrarily, adversarial relationships among labor, management, and government are more the norm in the United Kingdom, and particularly in the United States.
Difficulty: 1 Easy
Topic: Factors Influencing Strategic Choice
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Remember
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
88) A culture that is low context, individualistic, has a low power distance, and uses monochronic time is
Answer: A
Explanation: American culture is low context, individualistic (IDV), low power distance (PDI), obviously close to English, monochronic time–oriented, linguistically direct, and foreground focused, and it achieves efficiency through competition; therefore, it is categorized as an information-oriented culture.
Difficulty: 2 Medium
Topic: Elements of Culture
Learning Objective: 05-05 The differences between relationship-oriented and information-oriented cultures.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
89) A culture that is high context, has collectivism, has a high power distance, and uses polychronic time is
Answer: B
Explanation: Japanese culture is high context, collectivistic, high power distance, far from English, polychronic (in part), linguistically indirect, and background focused, and it achieves efficiency through reduction of transaction costs; therefore, it is properly categorized as a relationship-oriented culture.
Difficulty: 1 Easy
Topic: Elements of Culture
Learning Objective: 05-05 The differences between relationship-oriented and information-oriented cultures.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
90) Why is adaptation a necessary element when working with cultural differences? What are the basic criteria to deal with foreign firms?
Answer: Adaptation is a key concept in international marketing, and willingness to adapt is a crucial attitude. Adaptation, or at least accommodation, is required on small matters as well as large ones. In fact, small, seemingly insignificant situations are often the most crucial. More than tolerance of an alien culture is required. Affirmative acceptance, that is, open tolerance may be needed as well. Through such affirmative acceptance, adaptation becomes easier because empathy for another’s point of view naturally leads to ideas for meeting cultural differences. As a guide to adaptation, all who wish to deal with individuals, firms, or authorities in foreign countries should be able to meet ten basic criteria:
(1) open tolerance,
(2) flexibility,
(3) humility,
(4) justice/fairness,
(5) ability to adjust to varying tempos,
(6) curiosity/interest,
(7) knowledge of the country,
(8) liking for others,
(9) ability to command respect, and
(10) ability to integrate oneself into the environment.
Difficulty: 2 Medium
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
91) Describe the three types of business customs that an international marketer must be aware of and provide examples of each.
Answer: Business customs can be grouped into cultural imperatives, cultural electives, and cultural exclusives.
(1) Cultural imperatives are the business customs and expectations that must be met and conformed to or avoided if relationships are to be successful. A complicating factor in cultural awareness is that what may be an imperative to avoid in one culture is an imperative to do in another.
(2) Cultural electives relate to areas of behavior or to customs that cultural aliens may wish to conform to or participate in but that are not required. In other words, following the custom in question is not particularly important but is permissible. The majority of customs fit into this category. A cultural elective in one county may be an imperative in another. Cultural electives are the most visibly different customs and thus more obvious. Often, it is compliance with the less obvious imperatives and exclusives that is more critical.
(3) Cultural exclusives are those customs or behavior patterns reserved exclusively for the locals and from which the foreigner is barred. Foreign managers need to be perceptive enough to know when they are dealing with an imperative, an elective, or an exclusive and have the adaptability to respond to each. There are not many imperatives or exclusives, but most offensive behaviors result from not recognizing them.
Difficulty: 2 Medium
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
92) Describe the “master of destiny” and “independent enterprise” philosophies and their role in U.S. management.
Answer: The “master of destiny” philosophy is fundamental to U.S. management thought. Simply stated, people can substantially influence the future; they are in control of their own destinies. This viewpoint also reflects the attitude that though luck may influence an individual’s future, on balance, persistence, hard work, a commitment to fulfill expectations, and effective use of time give people control of their destinies. In the United States, approaches to planning, control, supervision, commitment, motivation, scheduling, and deadlines are all influenced by the concept that individuals can control their future.
The acceptance of the idea that independent enterprise is an instrument for social action is the fundamental concept of U.S. corporations. A corporation is recognized as an entity that has rules and continuity of existence and is a separate and vital social institution. This recognition can result in strong feelings of obligation to serve the company. Indeed, the company may take precedence over family, friends, or activities that might detract from what is best for the company.
Difficulty: 2 Medium
Topic: Elements of Culture
Learning Objective: 05-01 The necessity for adapting to cultural differences.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
93) Discuss the three patterns of decision making that are typical in international business.
Answer: The international businessperson is confronted with three typical patterns of decision making: top-level management decisions, decentralized decisions, and committee or group decisions. Top-level management decision making is generally found in situations in which family or close ownership gives absolute control to owners and businesses are small enough to allow such centralized decision making. As businesses grow and professional management develops, there is a shift toward decentralized management decision making.
Decentralized decision making allows executives at different levels of management to exercise authority over their own functions. This approach is typical of large-scale businesses with highly developed management systems, such as those found in the United States. A trader in the United States is likely to be dealing with middle management, and title or position generally takes precedence over the individual holding the job.
Committee decision making is by group or consensus. Committees may operate on a centralized or decentralized basis, but the concept of committee management implies something quite different from the individualized functioning of the top management and decentralized decision-making arrangements just discussed. Because Asian cultures and religions tend to emphasize harmony and collectivism, it is not surprising that group decision making predominates there.
Difficulty: 2 Medium
Topic: Basic Decisions for Entering Foreign Markets
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
94) Distinguish between the two time systems in the world, as defined by Edward T. Hall.
Answer: Edward Hall defines two time systems in the world: monochronic and polychronic time. M-time, or monochronic time, typifies most North Americans, Swiss, Germans, and Scandinavians. These Western cultures tend to concentrate on one thing at a time. They divide time into small units and are concerned with promptness. M-time is used in a linear way, and it is experienced as almost tangible, in that one saves time, wastes time, bides time, spends time, and loses time. Most low-context cultures operate on M-time. P-time, or polychronic time, is more dominant in high-context cultures, where the completion of a human transaction is emphasized more than holding to schedules. P-time is characterized by the simultaneous occurrence of many things and by “a great involvement with people.” P-time allows for relationships to build and context to be absorbed as parts of high-context cultures.
Difficulty: 2 Medium
Topic: Basic Decisions for Entering Foreign Markets
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
95) Discuss how the self-reference criteria plays a role when negotiating with a foreign entity.
Answer: The basic elements of business negotiations are the same in any country: They relate to the product, its price and terms, services associated with the product, and, finally, friendship between vendors and customers. But it is important to remember that the negotiating process is complicated, and the risk of misunderstanding increases when negotiating with someone from another culture. The possibility of offending one another or misinterpreting others’ motives is especially high when one’s self-reference criteria (SRC) is the basis for assessing a situation. One standard rule in negotiating is “know thyself” first and “know your counterpart” second. The SRC of both parties can come into play here if care is not taken.
Difficulty: 2 Medium
Topic: Basic Decisions for Entering Foreign Markets
Learning Objective: 05-02 How and why management styles vary around the world.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
96) Why do U.S. multinational companies hesitate to offer women international assignments? Is this prejudice justified?
Answer: The gender bias against female managers that exists in some countries, coupled with myths harbored by male managers, creates hesitancy among U.S. multinational companies to offer women international assignments. Despite the substantial prejudices toward women in foreign countries, evidence suggests that prejudice toward foreign women executives may be exaggerated and that the treatment local women receive in their own cultures is not necessarily an indicator of how a foreign businesswoman is treated. A key to success for both men and women in international business often hinges on the strength of a firm’s backing. When a female manager receives training and the strong backing of her firm, she usually receives the respect commensurate with the position she holds and the firm she represents. For success, a woman needs a title that gives immediate credibility in the culture in which she is working and a support structure and reporting relationship that will help her get the job done. In short, with the power of the corporate organization behind her, resistance to her as a woman either does not materialize or is less troublesome than anticipated. Once business negotiations begin, the willingness of a business host to engage in business transactions and the respect shown to a foreign businessperson grow or diminish depending on the business skills he or she demonstrates, regardless of gender.
Difficulty: 2 Medium
Topic: Elements of Culture
Learning Objective: 05-03 The extent and implications of gender bias in other countries.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
97) Discuss the difference between bribery and extortion and provide examples.
Answer: The distinction between bribery and extortion depends on whether the activity resulted from an offer or from a demand for payment. Voluntarily offered payment by someone seeking unlawful advantage is bribery. For example, it is bribery if an executive of a company offers a government official payment in exchange for the official incorrectly classifying imported goods so the shipment will be taxed at a lower rate than the correct classification would require. However, it is extortion if payments are extracted under duress by someone in authority from a person seeking only what he or she is lawfully entitled to. An example of extortion would be a finance minister of a country demanding heavy payments under the threat that a contract for millions of dollars would be voided.
Difficulty: 2 Medium
Topic: Ethical Decision Making
Learning Objective: 05-04 The importance of cultural differences in business ethics.
Bloom’s: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
98) Compare an information-oriented culture like America with a relationship-oriented culture like Japan.
Answer: American culture is low context, individualistic (IDV), low power distance (PDI), obviously close to English, monochronic time–oriented, linguistically direct, and foreground focused, and it achieves efficiency through competition; therefore, it is categorized as an information-oriented culture. Alternatively, Japanese culture is high context, collectivistic, high power distance, far from English, polychronic (in part), linguistically indirect, and background focused, and it achieves efficiency through reduction of transaction costs; therefore, it is properly categorized as a relationship-oriented culture. All these traits are so even though both the United States and Japan are high-income democracies. Both cultures do achieve efficiency but through different emphases. The American business system uses competition, whereas the Japanese depend more on reducing transaction costs.
Difficulty: 2 Medium
Topic: Elements of Culture
Learning Objective: 05-05 The differences between relationship-oriented and information-oriented cultures.
Bloom’s: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
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.
