Chapter 5 Global Business

1. Research studies find that culture is not learned; rather it is inherited.
F
2. Verbal and non-verbal communication are the two primary types of language.
T
3. The primary reason why language mistakes occur in global business is that organizations tend to use backward translation.
F
4. In Kuwait, weekends are Monday and Tuesday, not Saturday and Sunday as they are in most Western nations.
F
5. In Arab countries, business executives will often digress from the primary purpose of the meeting, then eventually return to the topic initially discussed.
T
6. Mexican negotiators will frequently engage in long periods of silence, or may have peripheral discussions among one another while ignoring foreign business people in the room.
F
7. The level of education must be such that high-tech products can be accepted because the market knows how to use them.
T
8. Inwa means that groups at the top of the social pyramid exert a great deal of control over others at lower levels of the pyramid.
F
9. Power distance examines the extent to which societies tolerate risk or are risk averse.
F
10. Hofstede’s masculine vs. feminine dimension is the extent to which a society values traditionally masculine attributes (assertiveness, competition) or traditionally feminine ones (modesty, caring for others).
T
11. According to the GLOBE Project, the lowest level of instituional collectivism existed for the Anglo group.
F
12. The U.S. Department of Commerce Country Commercial Guide provides cultural information for 133 countries.
T
13. When doing business in Russia, it is not appropriate to look directly into the eyes of your Russian hosts.
F
14. Guanxi refers to the relationship between subordinates and superiors. It denotes friendship among unequals involving unlimited exchanges of favors; thus, it is not based upon sentiment.
T
15. Latin Americans are not as conscious about time as are North Americans.
T
1. Which of the following statements about culture is NOT true?
a.
It is a concept that is relaively easy to define.
b.
There are many different components of culture.
c.
Culture involves how a group of people behave, what they value and appreciate, and many other aspects.
d.
There are four charecteristics of culture.
e.
Culture is learned, not inherited.
A
2. Of the following, which is NOT a charcteristic of culture that is important for global companies to recognize?
a.
Culture is learned, not inherited.
b.
It is nearly impossible to change an entire country’s culture.
c.
It is the responsibility of the global firm to ascertain the level of importance of various aspects of culture in the foreign markets it serves.
d.
Companies’ operations, cheifly marketing and management, need to recognize and adjust to the cultural environment existing in the countries the global company serves.
e.
Culture can be imposed from home country to host country.
E
3. Mexican business executives who buy business-to-business products from U.S. suppliers indicate that “knowledge of the mexican culture” and “enthusiasm” were the most important cutural variables determining from which supplier they purchased. this example of which of the four charecteristics of culture which is important for global companies to recognize?
a.
Culture is larned, not inherited.
b.
It is nearly impossible to change an entire county’s culture.
c.
It is the responsibility of the global firm to ascertain the level of importance of various aspects of culture in the foreign markets it serves.
d.
Companies’ operations, chiefly marketing and management, need to recognize and adjust to the cultural environment existing in the countries the global company serves.
e.
Culture is inherited, not learned.
C
4. ______ communication refers to tone of voice, gestures, eye contact, body positions, facial grimaces, and other body language that accompanies verbal communication.
a.
Verbal
b.
Nonverbal
c.
Informal
d.
Formal
e.
Backward
B
5. In ____ translation, a message is translated from English to another language, then someone skilled in that foreign language translates it back into English; this second translation can then be compared to the original English version.
a.
vertical
b.
horizontal
c.
forward
d.
backward
e.
diagonal
D
6. Of the following, which is NOT true reguarding religion as a cultural aspect?
a.
In Muslim countries, American companies cannot antcipate employing women because they are not encouraged to work outside the home.
b.
Different religions observe different holidays.
c.
Jews observe a number of annual holidays, including Purim, Passover, and Hanukkah.
d.
In Kuwait, weekends are Saturday and Sunday.
e.
Jews and Muslims are prohibited from eating pork.
D
7. _____ refers to the way a society does things.
a.
Values
b.
Attitudes
c.
Manners and customs
d.
Stances
e.
Outlooks
C
8. In some countries, a high premium is placed upon foreigners and foreign items, as they are associated with sophistication -French wines, for example, or Swedish automobiles. In other countries, there is subtle resistance to foreign items. This is an example of a cultural _____.
a.
value
b.
attitude
c.
manners and custom
d.
stance
e.
outlook
A
9. In Country A, proposed change is viewed with suspicion – especially if it is suggested by foreigners. This is an example of a cultural _____.
a.
value
b.
attitude
c.
manners and customs
d.
stance
e.
outlook
B
10. In Arab countries, business executives will often digress from the primary purpose of the meeting, then eventually return to the topic initially discussed. This is an example of a cultural _____.
a.
value
b.
attitude
c.
manners and customs
d.
stance
e.
outlook
C
11. In China, consumers drink soup, which usually contains rice, and do not use a spoon. In Muslim countries, it would be inappropriate to bring a gift for another man’s wife. These are example of cultural_____.
a.
value
b.
attitude
c.
manners and customs
d.
stance
e.
outlook
C
12. _____ infrastructure refers to housing, medical services, and educational institutions.
a.
Material
b.
Technological
c.
Social
d.
Financial
e.
Economic
C
13. The color black in the United States indicates mourning, but in Japan white is the color of mourning. Green is an acceptable color in Muslim countries; all flags of those countries contain green. These are examples of which of the following?
a.
Material culture
b.
Aesthetics
c.
Social institutions
d.
Stratification
e.
Intangible culture
B
14. _____ refers to the way people in a society relate to one another within group settings.
a.
Material culture
b.
Aesthetics
c.
Social institution
d.
Stratification
e.
Intangible culture
C
15. The extent to which groups at the top of the social pyramid exert control over others at the lower levers of the pyramid is referred to as _____.
a.
material culture
b.
aesthetics
c.
a social institution
d.
social stratification
e.
intangible culture
D
16. Of the following, which is NOT a cultural level identified by Hofstede?
a.
Individualism vs. collectivism
b.
Power distance
c.
Masculine vs. feminine
d.
Uncertainty avoidance
e.
Internal control vs. external control
E
17. Of the following, which dimension identified by Hofstede refers to the extent to which societies tolerate risk or are risk averse?
a.
Individualism vs. collectivism
b.
Power distance
c.
Masculine vs. feminine
d.
Uncertainty avoidance
e.
Internal control vs. external control
D
18. Of the following, which dimension identified by Hofstede refers to the level of egalitarianism in a society?
a.
Individualism vs. collectivism
b.
Power distance
c.
Masculine vs. feminine
d.
Uncertainty avoidance
e.
Internal control vs. external control
B
19. Of the following, which is NOT true regarding Hofstede’s cultural dimensions?
a.
Japan and Mexico are highly collectivistic.
b.
Australia and the United States are high power distance countries.
c.
Japan, Greece, and Belgium have been described as highly masculine cultures.
d.
Finland and Sweden are less tolerant of risk than Portugal and Brazil.
e.
China and Japan have much longer time horizons than do most Western nations.
B
20. Which of the following is NOT one of the nine cultural variables researched by the GLOBE Project?
a.
Power distance
b.
Uncertainty avoidance
c.
Humane orientation
d.
Performance orientation
e.
Emotionality
E
21. According to the GLOBE Project research, _____ was ranked first on power distance.
a.
Germanic Europe
b.
Southern Asia
c.
Eastern Europe
d.
the Arabic group
e.
Latin Europe
B
22. According to the GLOBE Project research, _____ has emerged as the group that was the most in favor of uncertainty avoidance.
a.
Germanic Europe
b.
Southern Asia
c.
Eastern Europe
d.
the Arabic group
e.
Latin Europe
A
23. Of the following, which is NOT a primary or secondary source that can be used to learn about foreign countries’ cultures?
a.
The U.S. Department of Commerce Commercial Guide
b.
The Economist’s Intelligence Unit
c.
Culture Grams
d.
Craigshead’s International Business, Travel and Relocation Guide to 84 Countries
e.
Forbes’s Countries of the World
E
24. Of the following, which provides cultural information for 133 countries?
a.
The U.S. Department of Commerce Commercial Guide
b.
The Economist’s Intelligence Unit
c.
Culture Grams
d.
Craigshead’s International Business, Travel and Relocation Guide to 84 Countries
e.
Forbes’s Countries of the World
A
25. Of the following, which is NOT a cultural aspect of doing business in Korea?
a.
The number 1 is good, whereas the number 4 signifies death.
b.
Business card etiquette is the most important aspect of closing the deal.
c.
Younger brothers and sisters are not allowed to use the names of their older siblings.
d.
“Yangban” refers to the noble class.
e.
Children are not supposed to say their parents’ names, even when used with a title.
B
26. Of the following, which is NOT a cultural aspect of doing business in Korea?
a.
The number 1 is good, whereas the number 4 signifies death.
b.
Avoid sitting so that the sole of one’s shoe is shown.
c.
Younger brothers and sisters are not allowed to use the names of their older siblings.
d.
“We” is more important than “I.”
e.
Children are not supposed to say their parents’ names, even when used with a title.
B
27. _____refers to a Chinese philosophy examining the relationship between subordinates and supervisors. It denotes friendship among unequals involving unlimited exchanges of favors.
a.
Guanxi
b.
Inwa
c.
Yangban
d.
Stratification
e.
Aesthetics
A
28. In ______, teachers are so revered that walking in their shadows is viewed as impolite.
a.
Latin America
b.
Korea
c.
Russia
d.
Arab countries
e.
India
B
29. _____refers to a Korean philosophy stressing harmony among unequals, loyalty to parents and authority figures, and superiors being responsible for the well-being of subordinates.
a.
Guanxi
b.
Inwa
c.
Yangban
d.
Stratification
e.
Aesthetics
B
30. When doing business in _____, it is important to understand that potential customers want to develop a personal relationship before doing business with foreign executives. Dinner exchanges and lunch meetings provide a good time for executives to get to know one another better. Dinners most often occur in the late evening, at 9 or 10pm.
a.
China
b.
Japan
c.
Korea
d.
Latin America
e.
Arab countries
D
31. Guanxi is a term utilized in _____.
a.
China
b.
Japan
c.
Korea
d.
Latin America
e.
Arab Countries
A
32. Inwa is a term utilized in _____.
a.
China
b.
Japan
c.
Korea
d.
Latin America
e.
Arab Countries
C
33. Of the following, which is NOT true about managing and marketing in overseas markets?
a.
Only one management style need be used.
b.
There can be different cultural groups within countries of which organizations need to be aware.
c.
Advertising campaigns must be tailored to local cultures.
d.
Culture has an impact on communication styles.
e.
Clear communication can improves the outcomes of management decisions.
A
34. Of the following, which dimension identified by Hofstede refers to the extent to which a society emphasizes short-run or long-run time horizons?
a.
Time orientation
b.
Power distance
c.
Masculine vs. feminine
d.
Uncertainty avoidance
e.
Internal control vs. external control
A
35. Of the following, which dimension identified by Hofstede refers to the extent to which a society minimizes gender inequality?
a.
Time orientation
b.
Power distance
c.
Masculine vs. feminine
d.
Uncertainty avoidance
e.
Internal control vs. external control
C