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Indicate whether the statement is true or false.
1. Martha is an expatriate manager at Dabinelle Corp. in New Zealand. For the success of her firm, she should develop her
cultural intelligence.
a.
True
b.
False
2. As a general rule, Pakistani natives prefer quick results and instant gratification in business deals, making Pakistan a
long term oriented culture.
a.
True
b.
False
3. English is a global business language because English-speaking countries contribute the largest share of global output.
a.
True
b.
False
4. To the extent that laws reflect a society’s minimum standards of conduct, what is legal and what is illegal perfectly
correspond to what is considered ethical and what is considered unethical, respectively.
a.
True
b.
False
5. In the context of acquisition of cultural intelligence, awareness is also known as cross-cultural literacy.
a.
True
b.
False
6. A defensive strategy focuses on regulatory compliance.
a.
True
b.
False
7. Managers in low uncertainty avoidance countries tend to rely on rules.
a.
True
b.
False
8. The Chinese view of China as “zhong guo”, which literally means “the country in the middle” or “middle kingdom” is
an example of ethnocentrism.
a.
True
b.
False
9. Informal institutions come from socially transmitted information and are a part of the heritage that we call cultures,
ethics, and norms.
a.
True
b.
False
10. Western countries generally nurture firms with long horizons.
a.
True
b.
False
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11. Managers should be aware that the norms around the globe in the 21st century are more culturally sensitive and more
ethically demanding than in the 1970s, but not every local norm needs to be followed exactly.
a.
True
b.
False
12. A reactive strategy is active. Firms feel compelled to act when problems arise.
a.
True
b.
False
13. An accommodative strategy is a strategy that anticipates ethical challenges and addresses them before they happen.
a.
True
b.
False
14. A defensive strategy is passive. Firms do not feel compelled to act when problems arise, and denial is usually the first
line of defense.
a.
True
b.
False
15. Most employers do not give their expatriates that much time to learn before sending them abroad. Most expatriates are
inadequately prepared, and the costs for firms, individuals, and families are high. Managers should work to gain cultural
intelligence well in advance of expatriate placement.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
16. When generalizing culture as national culture, it is important to remember which of the following?
a.
Many subcultures exist within multiethnic countries
b.
Culture has many layers, such as regional, ethnic, and religious
c.
Using the term “culture” to discuss
culture is helpful for expediency
d.
All of the above
17. Which of the following is the second set of clusters?
a.
GLOBE clusters
b.
Shenkar clusters
c.
Huntington civilizations
d.
Ronen civilizations
18. Which of the following options is a factor for the dominance of English as a global business language?
a.
English-speaking countries contribute the largest share of global output.
b.
Recent globalization has called for the use of only English as a common language.
c.
Nonnative speakers of English are increasingly commanding a premium in jobs and compensation.
d.
English is the largest language in terms of the number of native speakers.
19. Which of the following statements is true of informal institutions?
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a.
They come from socially transmitted information.
b.
They focus on a single dimension: context.
c.
They include politics, laws, and economics.
d.
They are supported by the regulatory pillar.
20. Which of the following statements is true of religion?
a.
It is a major manifestation of ethics.
b.
It is a global business language.
c.
It contributes to the largest share of global output.
d.
Its knowledge is crucial for non-religious managers.
21. Which of the following statements is true of individualist firms?
a.
They tend to follow each other.
b.
They try to differentiate themselves from each other.
c.
They have a great tendency for centralized authority.
d.
They consider ’’aggressive’’ a negative term.
22. _____ refers to the extent to which members in a culture accept or avoid ambiguous situations and uncertainty.
a.
Ethnocentrism
b.
Individualism
c.
Uncertainty avoidance
d.
Femininity
23. In the global fight against corruption, the _____ was enacted by the US Congress in 1977. It bans bribery of overseas
officials.
a.
Foreign Corrupt Practices Act
b.
Corruption of Foreign Public Officials Act
c.
UK Bribery Act
d.
American Anti-Corruption Act
24. Which of the following options is an example of a high-context culture?
a.
In Japan, negotiators preferring not to flatly say “no” to a business request
b.
Lawyers in the United States making a contract as straightforward as possible
c.
Negotiators from China preferring to involve lawyers at the very first phase of contract drafting
d.
The French taking communication at face value
25. Which of the following statements is true of context?
a.
It emphasizes perseverance.
b.
It represents two dimensions.
c.
It is the background against which interaction takes place.
d.
It is the broadest level of cultural identity people have.
26. Esca Motors is aware that the brake wires used in its cars are of poor quality. Yet, it refuses to take any action and
proceeds to produce and sell the cars. The family of a victim who lost his life due to a brake failure in the middle of a
highway sues the company. Esca Motors is pressurized by Congress to recall its cars and compensate the victims with
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money. Esca Motors gives in to the pressure and does what is necessary. This is an example of _____.
a.
reactive strategy
b.
accommodative strategy
c.
proactive strategy
d.
defensive strategy
27. A(n) _____ maintains that some firms may be self-motivated to do it right regardless of social pressure.
a.
positive view
b.
negative view
c.
instrumental view
d.
progressive view
28. _____ refers to the ability to identify the symbols, rituals, and taboos in other cultures.
a.
Skill
b.
Responsiveness
c.
Knowledge
d.
Awareness
29. The dimension approach is more influential than the context approach because the context approach _____.
a.
focuses on too many dimensions of cultural differences
b.
represents only one dimension
c.
has relatively little to offer regarding differences of countries within one cluster
d.
is usually taken at face value without much reliance
30. Many Americans believe in “American exceptionalism,” a view that holds the United States to be exceptionally well
endowed to lead the world. This is an example of _____.
a.
lingua franca
b.
cultural difference
c.
ethnocentrism
d.
individualism
31. Which of the following is a feature of low-context cultures?
a.
The power distance of such cultures is always high.
b.
Messages are never taken at face value.
c.
Communication does not rely much on unspoken conditions or assumptions.
d.
Ties between individuals are close and collective accomplishments are often sought after.
32. A(n) _____ features emerging organizational norms to accept responsibility and a set of increasingly internalized
cognitive beliefs and values toward making certain changes.
a.
reactive strategy
b.
accommodative strategy
c.
proactive strategy
d.
defensive strategy
33. Which of the following statements is true of corruption?
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a.
It encourages foreign direct investment.
b.
It increases the economic development.
c.
It causes misallocation of resources.
d.
It is based on products and services.
34. Which of the following statements is true of culture?
a.
It is the background against which interaction takes place.
b.
It is deeply reflected in formal laws and regulations.
c.
It focuses only on a single dimension: context.
d.
It has two components: language and religion.
35. _____ is the extent to which less influential members within a country expect and accept that power is distributed
unequally.
a.
Power distance
b.
Power individualism
c.
Power collectivism
d.
Power communication
36. Which of the following statements is true of norms?
a.
They affect the focal individuals and firms.
b.
They focus only on regulatory compliance.
c.
They anticipate institutional changes.
d.
They are always the first line of defense for firms.
37. _____ is a set of guidelines for making ethical decisions.
a.
A code of practice
b.
A code of conduct
c.
Fiduciary
d.
Ethicism
38. Ethics helps to combat corruption, while corruption:
a.
discourages foreign direct investment.
b.
increases the economic development.
c.
decreases the tax rate.
d.
is based on products and services.
39. Which of the following is a potential disadvantage of the dominance of the English language?
a.
Native English speakers will be unable to communicate in other countries.
b.
Embarrassing translation errors are less likely.
c.
An expatriate manager who relies on English but does not know the local language may miss cultural
subtleties.
d.
More people learning English as a second language puts native English speakers at a disadvantage.
40. Which of the following statements is true of formal institutions?
a.
They come from socially transmitted information.
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b.
They are underpinned by the normative and cognitive pillars.
c.
They include culture, ethics, and values.
d.
They are supported by the regulatory pillar.
41. An individual’s ability to understand and adjust to new cultures is known as _____. ?
a.
skill
b.
responsiveness
c.
knowledge
d.
cultural intelligence
42. Which of the following set of clusters divide the world into eight civilizations?
a.
GLOBE clusters
b.
Hofstede civilizations
c.
Ronen and Shenkar clusters
d.
Huntington civilizations
43. Which of the following statements is true of knowledge, the second phase in the acquisition of cultural intelligence?
a.
It refers to the appreciation of people from other cultures.
b.
It is the recognition of both the pros and cons of an individual’s own cultural mental software.
c.
It is also known as cross-cultural literacy.
d.
It is based on the awareness and knowledge of other cultures.
44. An American firm operating in the Middle East has a tough time enforcing rules against sexual discrimination of
Muslim women working in the company. This is an example of _____.
a.
ethical contingency
b.
ethical imperialism
c.
ethical responsibility
d.
ethical institution
45. Which of the following statements is true of ethics?
a.
It always complies by the rules.
b.
It emphasizes perseverance for future betterment.
c.
It is only a part of formal institutions.
d.
It is deeply reflected in formal laws and regulations.
46. _____ is the idea that the identity of a person is fundamentally his or her own.
a.
Ethnocentrism
b.
Individualism
c.
Femininity
d.
Masculinity
47. With the world’s longest continuous written history (4,000 years) and the highest contemporary savings rate, China is
an example of a ____ oriented culture.
a.
short-term
b.
collectivist
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c.
uncertainty avoidance
d.
long-term
48. Which of the following statements is true of a collective society?
a.
Family units are highly valued.
b.
Being an entrepreneur is a popular mindset.
c.
Ties between individuals are relatively loose.
d.
Outsiders are easily trusted.
49. Which of the following options is an example of a low-context culture?
a.
Negotiators in Japan preferring not to flatly say “no” to a business request
b.
Lawyers in the United States making a contract as straightforward as possible
c.
Negotiators from China preferring not to involve lawyers until the very last phase of contract drafting
d.
The French relying heavily on unspoken conditions or assumptions
50. Which of the following languages is lingua franca?
a.
Spanish
b.
English
c.
Hindi
d.
Chinese
51. Explain the reactive strategy, the accommodative strategy, and the proactive strategy.
52. Describe the context approach and the cluster approach to understand cultural differences.
53. Define informal institutions and explain how ethnocentrism affects cultural intelligence.
54. Define culture and explain the two major components of culture.
55. Describe the dimension approach.
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