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Indicate whether the statement is true or false.
1. According to the GLOBE Project, the lowest level of institutional collectivism existed for the Anglo group.
a.
True
b.
False
2. In Arab countries, business executives will often digress from the primary purpose of the meeting, then
eventually return to the topic initially discussed.
a.
True
b.
False
3. Ironically, studies have shown that people who have lived and worked abroad are not particularly good
sources of informatin about the cultures of various countries.
a.
True
b.
False
4. Latin American 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.
a.
True
b.
False
5. Research studies find that culture is not learned; rather it is inherited.
a.
True
b.
False
6. 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).
a.
True
b.
False
7. The use of jargon is especially useful when conducting business meetings with foreign personnel.
a.
True
b.
False
8. The primary reason why language mistakes occur in global business is that organizations tend to use
backward translation.
a.
True
b.
False
9. Because Turkey is a Muslim country, the consumption of alcoholic beverages is prohibited there.
a.
True
b.
False
10. The level of education held by people in foreign countries must be such that high-tech products can be
accepted because the market knows how to use them.
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a.
True
b.
False
11. Latin Americans are not as conscious about time as are North Americans.
a.
True
b.
False
12. Power distance examines the extent to which societies tolerate risk or are risk averse.
a.
True
b.
False
13. The ability of a firm to adjust to a culture different from its own is called acculturation.
a.
True
b.
False
14. When doing business in Japan, it is appropriate to look directly into the eyes of your hosts.
a.
True
b.
False
15. 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.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
16. In Arab countries, it is crucial for a visitor to
a.
use the left hand to exchange greetings.
b.
avoid sitting so that the sole of one’s shoe is shown.
c.
praise his or her hosts effusively.
d.
insist on staying on-topic at all times.
e.
ask about the hosts' wives and children.
17. 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 cultural _____.
a.
aesthetics
b.
attitudes
c.
manners and customs
d.
social institutions
e.
outlooks
18. Feelings or opinions are called
a.
values.
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b.
attitudes.
c.
manners.
d.
customs.
e.
aesthetics.
19. 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
20. _____ infrastructure refers to housing, medical services, and educational institutions.
a.
Material
b.
Technological
c.
Social
d.
Financial
e.
Economic
21. 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
22. 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 cultural variables determining
from which supplier they purchased. This example of which of the four characteristics of culture which is
important for global companies to recognize?
a.
Culture is learned, 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.
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23. 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
24. In which country might an American businesswoman find her hosts especially reluctant to work with her?
a.
Germany
b.
Mexico
c.
Saudi Arabia
d.
Canada
e.
South Africa
25. _____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
26. ______ 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
27. Of the following, which is NOT a characteristic 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, chiefly 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.
28. In some countries, a high premium is placed upon foreigners and foreign items, as they are associated with
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sophistication –Belgian chocolate, 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.
social institution
c.
custom
d.
stance
e.
outlook
29. A management style that stresses competition among workers and among companies would likely not work
well in
a.
China.
b.
Germany.
c.
Canada.
d.
the United States.
e.
Russia.
30. _____ 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
31. When doing business in China, it is important to remember that
a.
exchanges are often uneven, working to the advantage of weaker members in the relationship.
b.
persons of low rank never have any influence or power in a relationship.
c.
an emotional appeal to superiors will almost always be successful.
d.
one must never give in to any demands of the Chinese hosts.
e.
obtaining the favor of subordinates will be seen as a sign of weakness.
32. According to Hofstede, the United States is considered a(n)
a.
authoritarian country.
b.
collectivist country.
c.
high power distance country.
d.
feminine country.
e.
highly individualistic country.
33. According to the GLOBE Project research, _____ was ranked first on power distance.
a.
Germanic Europe
b.
Southern Asia
c.
Eastern Europe
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d.
the Arabic group
e.
Latin Europe
34. In ______, teachers are so revered that walking in their shadows is viewed as impolite.
a.
Mexico
b.
Korea
c.
Russia
d.
Saudi Arabia
e.
India
35. 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 examples of cultural_____.
a.
value
b.
attitude
c.
manners and customs
d.
stance
e.
outlook
36. 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.
37. _____ refers to the way a society does things.
a.
Values
b.
Attitudes
c.
Manners and customs
d.
Stances
e.
Outlooks
38. 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
39. Which of these expressions should an American businessperson avoid in a meeting with foreign business
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representatives?
a.
"Today we will be discussing the new contract."
b.
"It is my pleasure to meet with you today."
c.
"Let's run this idea up the flagpole."
d.
"I look forward to working with you."
e.
"Let's discuss this idea further."
40. According to Hofstede, which of the following countries is best described as a highly feminine culture?
a.
Mexico
b.
Belgium
c.
Greece
d.
Norway
e.
Japan
41. 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.
Denmark has been described as a highly feminine culture.
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.
42. 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
43. 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.
44. 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
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45. 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
Enter the appropriate word(s) to complete the statement.
46. Uncertainty avoidance examines the extent to which societies tolerate ________.
47. The Chinese philosophy that denotes friendship among unequals and unlimited exchanges of favors is
referred to as _____.
48. Power distance is the cultural dimension that refers to ______ (equality) versus authority.
49. ________ is Trompenaars’s cultural variable that refers to the importance of rules versus relationships.
50. The ______ variable refers to the degree to which a society compartmentalizes roles.
51. The Chinese philosophy that denotes friendship among unequals involving unlimited exchanges of favors;
thus, it is not based upon sentiment is referred to as “_____”.
52. The _________ variable refers to how rewards in a society are handed out.
53. The extent to which a society expresses itself emotionally is defined by Trompenaars as ________variable.
54. ________ refers to learned behavior; a way of life for one group of people living in a single, related and
independent community.
55. Time _______is the extent to which a society emphasizes short-run or long-run time horizons.
Scenario – The Sandman Group
The Sandman Group is a multinational pharmaceutical business, which provides needed medications to a
variety of foreign markets around the globe. It has recently acquired a new customer that is based in Saudi
Arabia. This area of the world is new to the company. Sandman plans to send ten representatives and managers
to the Saudi region to better serve this new client’s needs. The company feels confident in its products and its
people and believes strongly they will be able to accommodate the needs of this client.
56. The Sandman Group is determined to be successful in its business dealings with its newest Saudi
customer. It has been working diligently with the ten representatives and managers it plans to send into the
region. Sandman wants each one to be well versed in the culture of the region before they depart on their
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assignment. Which one of the following would not be of high concern for those individuals to learn before
leaving the United States?
a.
Effective verbal communication skills
b.
Awareness of non-verbal language and its meanings
c.
Food for eating must be prepared in the halal way
d.
Financial infrastructure of the region
e.
Knowledge of the value system of the region
Scenario – Reardon Enterprises
Reardon Enterprises was founded in 1985 by Jonas and Samuel Reardon. Initially this company was based
solely in Santa Fe, New Mexico and sold products only in the U.S. market. Now, this organization has grown
to become fifth in the fine glassware industry in the world. It proudly claims the distinction of having 14
manufacturing facilities located on foreign soil. It currently provides its delicate and refined glass products to
24 foreign marketplaces around the world.
Samuel continues to work in the field and feels his expertise in foreign relations is a large part of the reason the
company has known such global success. While Jonas contends the factories and workers located on foreign
soil should not be treated differently from those in Santa Fe, Samuel contends it is important to know how the
other countries operate. Even with the differences in business philosophies and beliefs between the two owners,
Reardon Enterprises remains a multi-billion dollar operation with a glistening future ahead of it.
57. Jonas has decided that Samuel makes a valid point when he states the importance of knowing the culture of
the foreign country in which they wish to conduct business. Jonas has decided to learn as much as he can about
the culture of Japan in order to be better prepared for the company’s business endeavor there. Which of the
following would not be a valued source of information about foreign cultures?
a.
U.S. Department of the Interior
b.
Discussion with individuals who have worked in Japan
c.
Craigshead’s International Business
d.
Doing Business in 118 Countries by Price Waterhouse Cooper
e.
Country Report from the Economist
58. Reardon Enterprises has its second largest manufacturing facility located in South America. Which one of
the following would not be an important cultural fact Samuel and Jonas should know before conducting
business meetings there?
a.
Formal manners and attire are valued at dinner business meetings
b.
Business dealings must be discussed first and decisions made quickly
c.
Development of a personal relationship should come before conducting business
d.
Time is not an essential entity in that culture for it is believed there is always
tomorrow
e.
Dinner meetings are considered a time to get to know those who would be doing
business together
Scenario – The Sandman Group
The Sandman Group is a multinational pharmaceutical business, which provides needed medications to a
variety of foreign markets around the globe. It has recently acquired a new customer that is based in Saudi
Arabia. This area of the world is new to the company. Sandman plans to send ten representatives and managers
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to the Saudi region to better serve this new client’s needs. The company feels confident in its products and its
people and believes strongly they will be able to accommodate the needs of this client.
59. The Sandman Group realizes the business must be able to adjust to the vastly different Saudi culture quickly
in order to retain this new client. Which of the following best describes what the Sandman Group needs to
accomplish?
a.
Proliferation
b.
Ascription
c.
Acculturation
d.
Guanxi
e.
Social stratification
60. The representatives of Sandman must be aware of cultural do’s and don’ts of the Saudi Arabia
region. Which one of the following would be considered unacceptable or inappropriate for them to do during a
business meeting?
a.
Maintaining good posture.
b.
Not inquiring about the wives of foreign businessmen.
c.
Not overly praising the possessions of the Arab host.
d.
Not bringing a woman to the meeting without first seeking the host's approval.
e.
Sitting with the sole of the shoe showing.
Scenario – Reardon Enterprises
Reardon Enterprises was founded in 1985 by Jonas and Samuel Reardon. Initially this company was based
solely in Santa Fe, New Mexico and sold products only in the U.S. market. Now, this organization has grown
to become fifth in the fine glassware industry in the world. It proudly claims the distinction of having 14
manufacturing facilities located on foreign soil. It currently provides its delicate and refined glass products to
24 foreign marketplaces around the world.
Samuel continues to work in the field and feels his expertise in foreign relations is a large part of the reason the
company has known such global success. While Jonas contends the factories and workers located on foreign
soil should not be treated differently from those in Santa Fe, Samuel contends it is important to know how the
other countries operate. Even with the differences in business philosophies and beliefs between the two owners,
Reardon Enterprises remains a multi-billion dollar operation with a glistening future ahead of it.
61. Samuel is quite knowledgeable about the foreign cultures where Reardon Enterprises conducts its
operations. He understands the vital characteristics surrounding a country’s culture. Which one of the
following is not one of these characteristics?
a.
Culture is learned through associations and family.
b.
A company’s marketing and management must adjust and adapt to the culture of
the foreign marketplace.
c.
Culture is not dynamic and changes slowly over a long period of time.
d.
Companies have the responsibility to understand what is valued and accepted in
the foreign marketplace.
e.
Culture is inherited from others living within the society.
62. Briefly describe the four characteristics of culture important for global companies.
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63. Briefly describe any four elements of culture. Provide an example of each.
64. Would you characterize the United States as a "masculine" or "feminine" country? Defend your answer.
65. Differentiate between the cultural dimensions of doing business in Latin America and Arab countries.
66. Based on what you have learned about culture, which management styles do you think would work best
when working with clients from the Middle East? Explain your answer.
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Answer Key
1. False
2. True
3. False
4. False
5. False
6. True
7. False
8. False
9. False
10. True
11. True
12. False
13. True
14. False
15. True
16. b
17. c
18. b
19. d
20. c
21. e
22. c
23. a
24. c
25. b
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26. b
27. e
28. a
29. a
30. c
31. a
32. e
33. b
34. b
35. c
36. a
37. c
38. b
39. c
40. d
41. b
42. e
43. b
44. b
45. d
46. risk
47. guanxi
48. egalitarianism
49. Universalism vs. particularism
50. specific vs. diffuse
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51. “guanxi”
guanxi
52. achievement vs. ascription
53. neutral vs. emotional
54. Culture
55. orientation
56. d
57. a
58. b
59. c
60. e
61. e
62. Student answers will vary.
63. Student answers will vary.
64. Student answers will vary.
65. Student answers will vary.
66. Student answers will vary.
