Management 12th Edition John Schermerhorn - Test Bank

Management 12th Edition John Schermerhorn – Test Bank

 

Instant Download – Complete Test Bank With Answers

 

 

Sample Questions Are Posted Below

 

Ch05: Global Management and Cultural Diversity

 

True/False Questions

 

1. The growing interdependence among elements of the global economy is known as diversification.

Answer: False

Page: 108

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy
Bloom’s Taxonomy: Knowledge

 

2. In World 3.0, local needs and priorities are largely ignored compared to the economic gains of global integration.

Answer: False

Page: 108-109

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy
Bloom’s Taxonomy: Knowledge

 

3. Cultural awareness is an important characteristic of a truly global manager.

Answer: True

Page: 109

Learning Objective: 5.1

Difficulty: Easy

AACSB: Multicultural and diversity understanding
Bloom’s Taxonomy: Knowledge

 

4. Sigma Inc. conducts for-profit transactions of goods and services across national boundaries. Sigma Inc. is an example of an international business.

Answer: True

Page: 110

Learning Objective: 5.1

Difficulty: Moderate

AACSB: Dynamics of the global economy
Bloom’s Taxonomy: Comprehension

 

5. A common first step into international business is global sourcing.

Answer: True

Page: 111

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy
Bloom’s Taxonomy: Knowledge

 

6. Most manufacturers today shy away from using global sourcing owing to the growing concerns over issues related to quality.

Answer: False

Page: 111

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy
Bloom’s Taxonomy: Knowledge

 

7. In exporting, local products are sold abroad to foreign customers.

Answer: True

Page: 112

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy
Bloom’s Taxonomy: Knowledge

 

8. Franchising refers to acquiring products from abroad and selling them in domestic markets.

Answer: False

Page: 112

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy
Bloom’s Taxonomy: Knowledge

 

9. China’s foreign direct investment in the S. has led to the creation of many American jobs. This is an example of insourcing.

Answer: True

Page: 112

Learning Objective: 5.1

Difficulty: Moderate

AACSB: Dynamics of the global economy
Bloom’s Taxonomy: Comprehension

 

10. A foreign subsidiary is a foreign operation completely owned and controlled by a local firm.

Answer: False

Page: 113

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy
Bloom’s Taxonomy: Knowledge

 

11. A foreign subsidiary represents the lowest level of involvement in international operations.

Answer: False

Page: 113

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy
Bloom’s Taxonomy: Knowledge

 

12. Tariffs are basically taxes that governments impose on imports.

Answer: True

Page: 114

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy
Bloom’s Taxonomy: Knowledge

 

13. The goal of most tariffs is to protect local firms from foreign competition.

Answer: True

Page: 114

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy
Bloom’s Taxonomy: Knowledge

 

14. NAFTA was formed by the United Kingdom, France, and Germany.

Answer: False

Page: 115

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy
Bloom’s Taxonomy: Knowledge

 

15. Executives of transnationals view the entire world as their domain for acquiring resources.

Answer: True

Page: 117

Learning Objective: 5.2

Difficulty: Easy

AACSB: Dynamics of the global economy
Bloom’s Taxonomy: Knowledge

 

16. Extraction of excessive profits by global corporations is a potential host-country benefit.

Answer: False

Page: 118

Learning Objective: 5.2

Difficulty: Easy

AACSB: Dynamics of the global economy
Bloom’s Taxonomy: Knowledge

 

17. Long hours of work and poor working conditions are prevalent in sweatshops.

Answer: True

Page: 120

Learning Objective: 5.2

Difficulty: Easy

AACSB: Dynamics of the global economy
Bloom’s Taxonomy: Knowledge

 

18. Barbara shocked all her friends when she arrived at the party wearing a silk kimono, a traditional Japanese outfit. The reaction of her friends is an example of culture shock.

Answer: False

Page: 120

Learning Objective: 5.3

Difficulty: Moderate

AACSB: Reflective thinking skills
Bloom’s Taxonomy: Application

 

19. Nigel is very proud of his culture and tends to view other cultures as potentially inferior to his own. This is an example of ethnocentrism.

Answer: True

Page: 120

Learning Objective: 5.3

Difficulty: Moderate

AACSB: Reflective thinking skills
Bloom’s Taxonomy: Application

 

20. Knowledge about foreign cultures is known as cultural intelligence.

Answer: False

Page: 121

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding
Bloom’s Taxonomy: Knowledge

 

21. In low-context cultures, what is actually said or written may convey only part, and sometimes a very small part, of the real message.

Answer: False

Page: 121

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding
Bloom’s Taxonomy: Knowledge

 

22. Most communication in low-context cultures takes place via the written or spoken word.

Answer: True

Page: 121

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding
Bloom’s Taxonomy: Knowledge

 

23. Members of monochronic cultures are more flexible toward time than those of polychronic cultures.

Answer: False

Page: 121-122

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding
Bloom’s Taxonomy: Knowledge

 

24. Members of polychronic cultures do not like if someone is late or brings an uninvited guest.

Answer: False

Page: 122

Learning Objective: 5.3

Difficulty: Moderate

AACSB: Multicultural and diversity understanding
Bloom’s Taxonomy: Knowledge

 

25. Proxemics is how people use space to communicate.

Answer: True

Page: 122

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding
Bloom’s Taxonomy: Knowledge

 

26. Tight cultures are characterized by clear social norms.

Answer: True

Page: 123

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding
Bloom’s Taxonomy: Knowledge

 

27. In a tight culture, deviations from norms tend to be tolerated.

Answer: False

Page: 123

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding
Bloom’s Taxonomy: Knowledge

 

28. The ecological fallacy refers to the belief that a cultural value such as individualism does not apply equally to all Americans.

Answer: False

Page: 124

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding
Bloom’s Taxonomy: Knowledge

 

29. People in high-power-distance cultures tend to be tolerant of power and are prone to follow orders.

Answer: True

Page: 125

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding
Bloom’s Taxonomy: Knowledge

 

30. People in high-uncertainty-avoidance cultures prefer structure in their lives.

Answer: True

Page: 125

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding
Bloom’s Taxonomy: Knowledge

 

Multiple Choice Questions

 

31. Which of the following is an effect of globalization?
32. Reduced cooperation among nations in the global economy
33. Weakening of economic integration across countries
34. Reduced interdependence among the components in the global economy
35. Increasing importance of nation states
36. A borderless world

Answer: E

Page: 108

Learning Objective: 5.1

Difficulty: Easy

AACSB: Analytic skills

Bloom’s Taxonomy: Knowledge

 

32. Which of the following is a common reason for doing international business?
33. Reducing imports
34. Spreading assets among multiple countries
35. Boosting domestic demand
36. Establishing market monopoly
37. Promoting ethnocentrism

Answer: B

Page: 110

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

33. Howard is planning to expand his family business internationally, and is currently in the process of purchasing materials, manufacturing components, and locating business services around the world. Which of the following best describes his actions?
34. Global sourcing
35. Insourcing
36. Licensing
37. Franchising
38. Outsourcing

Answer: A

Page: 111

Learning Objective: 5.1

Difficulty: Hard

AACSB: Reflective thinking skills

Bloom’s Taxonomy: Application

 

34. Juan, a wealthy industrialist, owns several coffee plantations in Brazil. Encouraged by the rising sales figures in the domestic market, Juan decides to sell his local brand of coffee in markets around the world. Which of the following terms is applicable to this business strategy?
35. Importing
36. Insourcing
37. Franchising
38. Exporting
39. Licensing

Answer: D

Page: 112

Learning Objective: 5.1

Difficulty: Hard

AACSB: Reflective thinking skills

Bloom’s Taxonomy: Application

 

35. The growth of export industries ________ the exporting country.
36. reduces imports in
37. leads to easy access to low-cost labor in
38. creates local jobs in
39. provides access to a larger pool of financial resources for
40. leads to an excess supply of products in

Answer: C

Page: 112

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

36. When Zest Inc., a pharmaceuticals company, bought the rights of manufacturing and selling Bayman Pharma’s vitamin supplement Vita Plus in Cuba, Zest engaged in ________.
37. exporting
38. global sourcing
39. foreign direct investment
40. insourcing
41. licensing

Answer: E

Page: 112

Learning Objective: 5.1

Difficulty: Hard

AACSB: Reflective thinking skills

Bloom’s Taxonomy: Application

 

37. In ________, the foreign firm buys the rights to use another’s name and operating methods in its home country.
38. insourcing
39. franchising
40. global sourcing
41. exporting
42. offshoring

Answer: B

Page: 112

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

38. Which of the following terms is used to describe local job creation that results from foreign direct investment?
39. Restructuring
40. Franchising
41. Offshoring
42. Insourcing
43. Horizontal integration

Answer: D

Page: 112

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

39. When Iris Inc., a hand-bag manufacturer headquartered in the S., decided to invest in Japan, it tied up with a Japanese fashion house in order to pool resources, share risks, and operate the new business together. This is an example of ________.
40. a joint venture
41. a foreign subsidiary
42. a greenfield venture
43. diversification
44. product development

Answer: A

Page: 112

Learning Objective: 5.1

Difficulty: Hard

AACSB: Reflective thinking skills

Bloom’s Taxonomy: Application

 

40. A(n) ________ is a local operation completely owned and controlled by a foreign firm.
41. franchise
42. sweatshop
43. foreign subsidiary
44. global strategic alliance
45. export house

Answer: C

Page: 113

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

41. Cases presented before the World Trade Organization for resolution are likely to involve disputes regarding ________.
42. cultural appropriateness
43. restructuring
44. cultural distance
45. ecological fallacy
46. tariffs

Answer: E

Page: 114

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

42. ________ are taxes governments levy on imports from abroad.
43. Excise duties
44. Tariffs
45. Pay-offs
46. Corporate taxes
47. Subsidies

Answer: B

Page: 114

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

43. The goal of most tariffs is to:
44. improve present working conditions.
45. protect transnational corporations from political risks.
46. diversify existing jobs.
47. protect local firms from foreign competition.
48. create jobs for foreign workers.

Answer: D

Page: 114

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

44. Which of the following countries is a part of NAFTA?
45. Canada
46. United Kingdom
47. Germany
48. Spain
49. France

Answer: A

Page: 115

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

45. Arguments on the negative side blame NAFTA for:
46. lower productivity of S. manufacturers.
47. lower cross-border trade.
48. substantial job losses to Mexico.
49. substantial job losses to the S.
50. deterioration of the Mexican business environment.

Answer: C

Page: 115

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

46. Which of the following is true with regard to the European Union (EU)?
47. There is an absence of common consensus between the member states of EU with regard to political integration.
48. All the member states of the EU have adopted the Euro as the common currency.
49. The common currency of the EU is a weak competitor of the U.S. dollar.
50. The EU members are supposed to give one another most favored nation status.
51. The EU is an economic and political alliance of major importance.

Answer: E

Page: 116

Learning Objective: 5.1

Difficulty: Easy

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

47. A ________ is an MNE that operates worldwide on a borderless basis.
48. franchise
49. transnational corporation
50. foreign subsidiary
51. greenfield venture
52. limited liability company

Answer: B

Page: 117

Learning Objective: 5.2

Difficulty: Easy

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

48. Home-country criticisms of global firms include complaints about:
49. interference with the local government.
50. hiring the most talented local personnel at a high cost.
51. failure to transfer advanced technologies.
52. sending capital investments abroad.
53. poor working conditions.

Answer: D

Page: 118

Learning Objective: 5.2

Difficulty: Easy

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

49. ________ involves illegal practices to further one’s business interests.
50. Corruption
51. Ethnocentrism
52. Polycentrism
53. Proxemics
54. Ecological fallacy

Answer: A

Page: 118

Learning Objective: 5.2

Difficulty: Easy

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

50. The Foreign Corrupt Practices Act (FCPA) makes it illegal for:
51. countries who are not members of the EU to invest in the S.
52. S. firms to invest overseas.
53. foreign firms to offer nonmonetary gifts to S. officials.
54. foreign firms to offer bribes to S. firms.
55. S. firms and their representatives to engage in corrupt practices overseas.

Answer: E

Page: 119

Learning Objective: 5.2

Difficulty: Easy

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

51. Which of the following is an example of child labor?
52. A six-year old boy accompanying his mother to the carpet factory where she works
53. A ten-year-old boy working in a chemicals factory
54. A ten-year-old girl helping her younger brother with schoolwork
55. A thirteen-year-old boy earning $10 for helping his father harvest strawberries from the family garden
56. A nineteen-year-old girl working as a salesgirl in the local supermarket

Answer: B

Page: 119

Learning Objective: 5.2

Difficulty: Moderate

AACSB: Analytic skills

Bloom’s Taxonomy: Comprehension

 

52. What are sweatshops?
53. Local business operations that expand internationally through foreign direct investment
54. Arbitrating firms that settle labor disputes
55. Business operations that employ workers at low wages for long hours in poor working conditions
56. Foreign firms that hire talented local personnel for training others in the host country
57. Foreign firms that are engaged in rampant corruption and bribery to gain easy access to the local resource pool

Answer: C

Page: 120

Learning Objective: 5.2

Difficulty: Moderate

AACSB: Analytic skills

Bloom’s Taxonomy: Comprehension

 

53. Which of the following is a characteristic of a sweatshop?
54. Poor working conditions
55. High wages
56. Low power distance
57. High degree of foreign investment
58. Strong ethics

Answer: A

Page: 120

Learning Objective: 5.2

Difficulty: Easy

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

54. Which of the following is an example of a sweatshop?
55. Jason & Jason, an American law firm, opened its branch in Taiwan as part of its business expansion strategy.
56. Ross Inc., a pharmaceuticals company, bought the rights to manufacture and sell a fertility drug in Greenland from Lena Pharmaceuticals.
57. Nice & Patton, an electronic device manufacturing company, housed its employees in poor conditions and also overworked them.
58. SayMore, a supermarket, sourced its canned fishes from Asia at a far lower price than most of its local competitors.
59. Janus Infotech refused to increase the annual wages of its employees citing poor financial results in the last quarter.

Answer: C

Page: 120

Learning Objective: 5.2

Difficulty: Moderate

AACSB: Analytic skills

Bloom’s Taxonomy: Comprehension

 

55. ________ is a shared set of beliefs, values, and patterns of behavior common to a group of people.
56. Culture
57. Meme
58. Folklore
59. Conduct
60. Moral

Answer: A

Page: 120

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

56. Which of the following is true about culture?
57. Culture is a set of legal codes.
58. Culture occupies a position of peripheral importance in international business.
59. Culture is not common to a group.
60. Culture remains static over time.
61. Cultural miscues can be costly in international business.

Answer: E

Page: 120

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

57. An American executive goes to Yemen to finalize a business deal. He hands over his documents to his Yemeni host with his left hand, which Muslims consider unclean. Moreover, he refuses to accept the dry fruits that he is offered, a behavior that deeply offends his host. As a result, the American loses the business deal to his Australian counterpart who was better versed in Yemeni ways. The lack of understanding of ________ is most likely to have resulted in the loss of business for the American executive.
58. the business trends in Yemen
59. Yemeni ethics
60. the business laws in Yemen
61. Yemeni culture
62. the banking system in Yemeni

Answer: D

Page: 120

Learning Objective: 5.3

Difficulty: Hard

AACSB: Reflective thinking skills

Bloom’s Taxonomy: Application

 

58. ________ is the confusion and discomfort a person experiences when in an unfamiliar culture.
59. Cultural appropriation
60. Culture shock
61. Cultural assimilation
62. Cultural relativism
63. Culture phobia

Answer: B

Page: 120

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

59. Culture shock is:
60. a hatred of foreign cultures.
61. an individual’s failure to comply with the codes of his culture.
62. an assumption that one’s own culture is superior to that of others.
63. an assumption that one’s own culture is inferior to that of others.
64. the discomfort a person experiences when in an unfamiliar culture.

Answer: E

Page: 120

Learning Objective: 5.3

Difficulty: Moderate

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Comprehension

 

60. Stephanie Mann, an elderly German woman, decides to visit her friend living in Indonesia after many decades. Having never visited the country before, she feels confused, anxious, uncomfortable, and in need of information and advice during her stay. She is most likely experiencing ________.
61. xenophobia
62. culture shock
63. cognitive dissonance
64. acculturation
65. boredom

Answer: B

Page: 120

Learning Objective: 5.3

Difficulty: Hard

AACSB: Reflective thinking skills

Bloom’s Taxonomy: Application

 

61. ________ is the tendency to consider one’s culture superior to that of others.
62. Regiocentrism
63. Isolationism
64. Geocentrism
65. Ethnocentrism
66. Polycentrism

Answer: D

Page: 120

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

62. Which of the following is a trait of ethnocentrism?
63. Showing no concern for the cultures of others
64. Being eager to adopt the elements of foreign cultures
65. Showing preference for foreign cultural values
66. Encouraging ethnic minorities to adopt the traits of the dominant culture
67. Failing to comply with the cultural values of one’s own group

Answer: A

Page: 120

Learning Objective: 5.3

Difficulty: Moderate

AACSB: Analytic skills

Bloom’s Taxonomy: Comprehension

 

63. Sam, an American national, was sent to India as part of a cultural exchange program in his university. On his arrival in India, he did not respond to his host who greeted him by folding his hands. He also declined the tea that was offered, emphasizing a cultural preference for coffee. Sam displayed ________.
64. polycentrism
65. idealism
66. ethnocentrism
67. feudalism
68. collectivism

Answer: C

Page: 120

Learning Objective: 5.3

Difficulty: Hard

AACSB: Reflective thinking skills

Bloom’s Taxonomy: Application

 

64. ________ is the ability to accept and adapt to new cultures.
65. Cultural imperialism
66. Cultural intelligence
67. Ethnocentrism
68. Cultural myopia
69. Cultural appropriation

Answer: B

Page: 121

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

65. People with cultural intelligence:
66. are flexible in dealing with cultural differences.
67. are uncomfortable with cultural differences.
68. view one’s culture as superior to that of others.
69. view one’s culture as inferior to that of others.
70. are eager to adopt the values of foreign cultures.

Answer: A

Page: 121

Learning Objective: 5.3

Difficulty: Moderate

AACSB: Analytic skills

Bloom’s Taxonomy: Comprehension

 

66. Someone high in cultural intelligence views cultural differences as ________.
67. threats
68. ethical dilemmas
69. learning opportunities
70. moral dilemmas
71. barriers to learning

Answer: C

Page: 121

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

67. The capacities to listen, observe, and learn are building blocks of cultural intelligence. These skills and competencies can be developed by better understanding what anthropologist Edward T. Hall calls the “________” languages of culture.
68. graphic
69. silent
70. transformative
71. spectacular
72. vocal

Answer: B

Page: 121

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

68. ________ cultures emphasize communication via spoken or written words.
69. High-context
70. Popular
71. High femininity
72. Low-context
73. Monochronic

Answer: D

Page: 121

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

69. People who tend to say or write what they mean and mean what they say belong to ________ cultures.
70. high-context
71. popular
72. low-context
73. mass
74. global

Answer: C

Page: 121

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

70. In ________ cultures, what is actually said or written may convey only part, and sometimes a very small part, of the real message.
71. low-context
72. monochronic
73. polychronic
74. popular
75. high-context

Answer: E

Page: 121

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

71. Which of the following is true with regard to high-context cultures?
72. They rely on nonverbal and situational cues.
73. The main part of the real message is conveyed by what is actually said.
74. Body language and the physical setting are ignored in the communication process.
75. They emphasize the importance of doing one thing at a time.
76. They focus on using time to accomplish many different things at once.

Answer: A

Page: 121

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

72. Cultures where it is possible to begin making business deals only after social relationships are established are referred to as ________ cultures.
73. ethnocentric
74. high-context
75. xenocentric
76. polychronic
77. popular

Answer: B

Page: 121

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

73. Monochronic cultures focus on ________.
74. gestures
75. written language
76. social context
77. time
78. space

Answer: D

Page: 121

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

74. In ________ cultures, people tend to do one thing at a time.
75. ethnocentric
76. xenocentric
77. monochronic
78. popular
79. high-context

Answer: C

Page: 121

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

75. Most businesspeople in the United States schedule meetings with specific people and focus on a specific agenda for an allotted time. This is characteristic of a(n) ________ culture.
76. polychronic
77. low-context
78. ethnocentric
79. high-context
80. monochronic

Answer: E

Page: 121

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

76. In ________ cultures, time is used to accomplish many different things at once.
77. polychronic
78. ethnocentric
79. low-context
80. high-context
81. monochronic

Answer: A

Page: 121

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

77. Which of the following is true about members of polychronic cultures?
78. They are known to be punctual without exception.
79. They are generally reluctant to accomplish many different things at once.
80. They are flexible toward time.
81. They regard time as the primary focus of business.
82. They prefer following a pre-determined sequence for accomplishing a given task at a given time.

Answer: C

Page: 122

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

78. Thomas Wiegler, a German businessman, decided to meet one of his clients in the latter’s office in Abu Dhabi. He was frustrated to find that after an initial warm greeting, his client continued to deal with the continuous stream of visitors flowing in and out of his office. Thomas concluded that he was not being given the dedicated attention he deserved. Thomas closely identifies with ________ cultural values.
79. low-context
80. monochronic
81. high-context
82. xenocentric
83. polychronic

Answer: B

Page: 122

Learning Objective: 5.3

Difficulty: Hard

AACSB: Reflective thinking skills

Bloom’s Taxonomy: Application

 

79. ________ is how people use space to communicate.
80. Proxemics
81. Kinesics
82. Haptics
83. Chronemics
84. Vocalics

Answer: A

Page: 122

Learning Objective: 5.3

Difficulty: Easy

AACSB: Communication abilities

Bloom’s Taxonomy: Knowledge

 

80. Which of the following is true about proxemics?
81. It studies the importance of time in the context of business.
82. It emphasizes the importance of gestures in the communication process.
83. It emphasizes verbal communication.
84. It focuses on the use of space in communication.
85. It focuses on the comparative analysis of the cultural traits of different groups.

Answer: D

Page: 122

Learning Objective: 5.3

Difficulty: Easy

AACSB: Communication abilities

Bloom’s Taxonomy: Knowledge

 

81. Ross is currently writing his doctoral thesis which is a comparative study on the use and treatment of physical space in communication between people across cultures. His thesis is a study on ________.
82. haptics
83. kinesics
84. vocalics
85. chronemics
86. proxemics

Answer: E

Page: 122

Learning Objective: 5.3

Difficulty: Hard

AACSB: Reflective thinking skills

Bloom’s Taxonomy: Application

 

82. Which of the following describes cultural tightness-looseness?
83. The ability to accept and adapt to new cultures
84. The strength of social norms and degree of sanctioning within societies
85. The confusion and discomfort a person experiences when in an unfamiliar culture
86. The tendency to consider one’s culture superior to others
87. The tendency to rely on nonverbal and situational cues

Answer: B

Page: 123

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

83. Which of the following is a focus of cultural tightness-looseness?
84. The tolerance that exists for any deviations from norms
85. The superiority of home country values
86. The first interaction with a new culture and the anxieties associated with it
87. The time when a new culture becomes the subject of one’s criticism
88. The ability to interpret the real message from what is being said

Answer: A

Page: 123

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

84. In a ________ culture, people guide their behavior according to expectations set by very clear social norms.
85. low-context
86. loose
87. monochronic
88. polychronic
89. tight

Answer: E

Page: 123

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

85. Which of the following countries has a tight culture?
86. Netherlands
87. Hungary
88. Malaysia
89. Australia
90. Ukraine

Answer: C

Page: 123

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

86. The goal set by tight cultures is to:
87. fit in.
88. stand out.
89. speak out.
90. attract attention.
91. question the validity of social norms.

Answer: A

Page: 123

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

87. In a loose culture:
88. people guide their behavior according to expectations set by very clear social norms.
89. people are expected to fit in.
90. people are discouraged to speak out.
91. social norms may be broad and ambiguous.
92. conformity to social norms is uniform and absolute.

Answer: D

Page: 123

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

88. Which of the following countries has a loose culture?
89. South Korea
90. Ukraine
91. Japan
92. Malaysia
93. India

Answer: B

Page: 123

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

89. Which of the following is true about loose cultures?
90. A high degree of conformity to social norms is present
91. Tolerance for deviation is absent
92. The goal is to fit in
93. Social norms are narrow and unambiguous
94. Non-criminal deviations from norms tend to be tolerated

Answer: E

Page: 123-124

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

90. A mix of cultural tightness and looseness in a cross-cultural team may result in ________.
91. synchronized performance
92. consistent productivity
93. soft or unstated conflict
94. mitigation of conflict
95. uniform and high inclination to volunteer

Answer: C

Page: 124

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

91. In a cross-cultural team, a member from the loose culture may show an inclination for which of the following?
92. Looking toward formal authority for direction
93. Criticizing others
94. Being slow to volunteer
95. Being slow to display emotion
96. Always being on time

Answer: B

Page: 124

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

92. Which of the following is a cultural dimension identified by Geert Hofstede?
93. Social orientation
94. Cultural intelligence
95. Social context
96. Uncertainty avoidance
97. Socialization

Answer: D

Page: 124

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

93. The ________ fallacy assumes that a generalized cultural value applies equally well to all members of the culture.
94. ecological
95. naturalist
96. etymological
97. definist
98. existential

Answer: A

Page: 124

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

94. Anna, a resident of Ukraine, decides to travel to the United States for a vacation. Her impression about Americans, who she thinks are strongly individualistic without exception, derives from Jacob. Jacob was once Anna’s tenant, and the only American she has ever met. Anna is in the danger of falling prey to the ________.
95. regression fallacy
96. ethical dilemma
97. Samaritan’s dilemma
98. existential fallacy
99. ecological fallacy

Answer: E

Page: 124

Learning Objective: 5.3

Difficulty: Hard

AACSB: Reflective thinking skills

Bloom’s Taxonomy: Application

 

95. ________ is the degree to which a society accepts unequal distribution of power.
96. Masculinity-femininity
97. Proxemics
98. Power distance
99. Individualism-collectivism
100. Power tactics

Answer: C

Page: 125

Learning Objective: 5.3

Difficulty: Easy

AACSB: Analytic skills

Bloom’s Taxonomy: Knowledge

 

96. Which of the following is true about people in high-power-distance cultures?
97. They do not accept differences in rank.
98. They tend to be tolerant of power.
99. They display a preference for letting people make their own decisions.
100. They display egalitarian relationships.
101. They have no respect for age.

Answer: B

Page: 125

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

97. The extensive use of words like “I” and “me” in conversations and meetings reflect a cultural tendency toward ________.
98. collectivism
99. nationalism
100. masculinity
101. individualism
102. socialism

Answer: D

Page: 125

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

98. ________ had the highest individualism score of any country in Hofstede’s data.
99. United States
100. United Kingdom
101. Canada
102. Australia
103. China

Answer: A

Page: 125

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

99. ________ is the degree to which a society tolerates risk and change.
100. Culture shock
101. Cultural assimilation
102. Imperialism
103. Power distance
104. Uncertainty avoidance

Answer: E

Page: 125

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

100. In high-uncertainty-avoidance cultures, one would expect to find a preference for ________.
101. openness to change
102. innovation
103. predictability
104. openness to risk
105. ambiguity

Answer: C

Page: 125

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

101. Members of low-uncertainty-avoidance cultures display:
102. apathy toward innovation.
103. affinity for rules.
104. preference for structure.
105. openness to change.
106. rigidity toward change.

Answer: D

Page: 125

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

102. Sebastian DuPont, a successful artist, lives and works in Paris. He does not travel much. Like many of his peers, he too has declined multiple offers to teach in famous schools of art outside Paris. He does not prefer change and likes predictability, order, and structure in his life. DuPont displays traits of being a member of a ________ culture.
103. low-uncertainty-avoidance
104. short-term oriented
105. long-term oriented
106. xenocentric
107. high-uncertainty-avoidance

Answer: E

Page: 125

Learning Objective: 5.3

Difficulty: Hard

AACSB: Reflective thinking skills

Bloom’s Taxonomy: Application

 

103. Which of the following defines masculinity-femininity?
104. It is the degree to which a society values assertiveness and materialism versus feelings, relationships, and quality of life.
105. It is the ratio of men and women in the workforce at a given point of time.
106. It is the degree to which a society values the role of men and women as the propagators of its culture.
107. It refers to the core differences of gender that are mirrored in the interaction between a man and a woman.
108. It refers to the importance of men versus women in a society.

Answer: A

Page: 125

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

104. ________ has the highest masculinity score in Hofstede’s research.
105. Malaysia
106. Japan
107. India
108. France
109. Germany

Answer: B

Page: 125

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

105. Which of the following expressions points toward a high masculine score?
106. Men tend to be physically stronger than women.
107. Women tend to have very fixed ideas about what men are like.
108. Women tend to be more patient than men.
109. Men tend to have a greater tolerance for risk than women do.
110. Men tend to have a rigid notion about what women are like.

Answer: E

Page: 125

Learning Objective: 5.3

Difficulty: Moderate

AACSB: Analytic skills

Bloom’s Taxonomy: Comprehension

 

106. ________ is the degree to which a society emphasizes short-term or long-term goals.
107. Uncertainty avoidance
108. Power distance
109. Time orientation
110. Time preference
111. Individualism-collectivism

Answer: C

Page: 125

Learning Objective: 5.3

Difficulty: Easy

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

Essay Questions

 

107. Name and briefly define some common market-entry strategies that help companies go global.

Answer: Some common market-entry strategies that help companies go global are global sourcing; exporting and importing; and licensing and franchising.

A common first step into international business is global sourcing—the process of purchasing materials, manufacturing components, or locating business services around the world.

A second form of international business involves exporting—selling locally made products in foreign markets. The flipside of exporting is importing—buying foreign-made products and selling them in domestic markets.

Another form of international business is the licensing agreement whereby foreign firms pay a fee for rights to make or sell another company’s products in a specified region. Franchising is a form of licensing in which the foreign firm buys the rights to use another’s name and operating methods in its home country.

Page: 110-112

Learning Objective: 5.1

Difficulty: Moderate

AACSB: Dynamics of the global economy

Bloom’s Taxonomy: Knowledge

 

108. Define culture. Explain the importance of cultural intelligence.

Answer: Culture is a shared set of beliefs, values, and patterns of behavior common to a group of people. People with cultural intelligence, or the ability to accept and adapt to new cultures, are flexible in dealing with cultural differences and willing to learn from what is unfamiliar. They use that learning to self regulate and modify their behaviors to act with sensitivity toward another culture’s ways. In other words, someone high in cultural intelligence views cultural differences not as threats but as learning opportunities.

Page: 120-121

Learning Objective: 5.3

Difficulty: Moderate

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge

 

109. Distinguish between tight and loose cultures. Provide examples.

Answer: In a tight culture, such as Malaysia, Korea, or Japan, people guide their behavior according to expectations set by very clear social norms. They try to conform to these norms, understanding that any deviation will be sanctioned and not be tolerated. The goal is to fit in and not stand out. On the other hand, in a loose culture, such as Hungary, Brazil, or Australia, people show general or mixed concern for social norms and these norms may be broad and ambiguous. Conformity is mixed; deviations from norms tend to be tolerated unless they reach criminal territory or the extremes of morality.

Page: 123-124

Learning Objective: 5.3

Difficulty: Moderate

AACSB: Multicultural and diversity understanding

Bloom’s Taxonomy: Knowledge