34. Both companies and local economies benefit when those companies take the diversity initiative of purchasing from
local, minority, or female-owned suppliers.
a. True
b. False
35. Workers from a society that emphasizes in–group collectivism are likely to ask, “What’s in it for me?” before accepting
a leader’s attempts at motivation.
a. True
b. False
36. Morton, an employee in a multicultural firm, comes from a country with high uncertainty avoidance. Thus, Morton
would appreciate it if his manager explained rules and procedures clearly to him.
a. True
b. False
37. A strong performance orientation is a strong cultural value of French German middle managers.
a. True
b. False
38. The typical Malaysian manager is likely to lack compassion for workers and at the same time be highly participative.
a. True
b. False
39. The stereotype of the leadership style of the manager in the southern U.S. is that he or she is laid back and interested
in relationship building.
a. True
b. False
40. Being multilingual is more important than being multicultural in persuading a person from another culture to purchase
your product or service.
a. True
b. False
41. A key principle in conducting business with people from another culture is to be firm and unyielding to avoid being
taken advantage of.
a. True
b. False
42. Generational differences, such as those between the young and old, represent another cultural difference managers
must take into account in leading groups.
a. True
b. False
43. A key aspect of cultural intelligence is to be able to interpret someone else’s unfamiliar and ambiguous gestures the
same way as his or her compatriots would.
a. True
b. False
44. A study demonstrated that high emotional intelligence contributed to executive failure on overseas assignments
because the executives were too concerned about feelings.
a. True
b. False
45. Tolerance for ambiguity is an asset for overseas executives because guidelines on how to behave in most cross-
cultural situations are not clear cut.
a. True
b. False
46. Many people are concerned that diversity training tends to reinforce stereotypes about groups.
a. True
b. False
47. An example of the cross-cultural challenges faced by international workers is to know when and with whom facial
cheek kissing as a greeting is appropriate.
a. True
b. False
48. A market research firm works on a variety of projects sourced from across the country. It has a deliberate policy of
employing research team members from a variety of cultural minorities such as Asians, Africans, Hispanics, and Native
Americans. This policy of the firm is likely to:
a. expand power distance.
b. enhance team performance.
c. result in the creation of standard processes for data analysis.
d. reduce the degree of time orientation.
49. Owen Corp., a company operating in the retail industry, has an implicit policy of recruiting candidates from the
majority community. Its rival firm, which encourages job applications from diverse backgrounds, has been registering a
higher profit consistently. In the context of the implicit recruitment policy at Owen Corp., which of the following is more
likely to contribute to such a pattern in profitability?
a. It could have shrunk its supply of potential candidates.
b. It may have contributed to a large amount of foreign fund flow leading to decreasing profit levels.
c. It could have possibly resulted in an increasing power distance within the organization.
d. It may have contributed to a large pool of overqualified professionals performing less challenging jobs.
50. Samuel, the CEO of a pulp and paper company, has been successful in expanding his company’s distribution centers
from five to thirty countries in two years. This has been largely attributed to his ability to connect with and motivate
employees from various backgrounds and ethnicities competently. Samuel is:
a. a leader who has a high degree of uncertainty avoidance.
b. a power distant leader.
c. an effective multicultural leader.
d. an aggressive, inconsiderate leader.
51. Benjamin Corp., a farmer-owned dairy cooperative company, procures milk from a number of farmers in the locality
and distributes packaged products to retailers across the state. The cooperative company has been successful over the
years due to its emphasis on values such as loyalty, pride, and cohesiveness. In which of the following dimensions is the
company likely to score the highest?
a. Assertiveness
b. Power distance
c. Gender egalitarianism
d. In-group collectivism
52. Scarlett is an advertising executive whose projects are spread across various countries. She has the ability to influence
her counterparts in other countries through her patience, adaptability, sensitivity to other ethnic communities, and
willingness to acquire knowledge about local customs and traditions. Which of the following terms best describes
Scarlett?
a. Time-oriented leader
b. Cross-cultural leader
c. Assertive leader
d. Power distant leader
53. Alexander, a PR professional at a multinational company, is on an official trip to a foreign country to establish
business relations with the companies there. The host nation is known to highly value conservative traditions and customs.
Alexander understands that the inhabitants of the host nation prefer others not to enter their personal space, and hence he
maintains a considerable personal distance from the representatives of the host nation during the business meetings.
Alexander later realizes that he has placed himself in an isolated position in an effort to value the host nation’s tradition.
In the context of cultural intelligence, Alexander is likely to have a high level of which of the following components?
a. Motivational CQ
b. Power distance
c. Assertiveness
d. In-group collectivism
54. William, the CEO of a business empire that has a presence in eight different industries in twenty countries, possesses
the expertise to persuade and convince people of other countries to accept his business ideas. William can be considered
as a leader who:
a. accepts societal hierarchy.
b. maintains power distance.
c. possesses global leadership skills.
d. emphasizes time orientation.
55. ChocoTruck Inc., a manufacturer of cocoa-based products, has retail outlets across the country. The company’s top
executive positions and managerial positions are held by people belonging to several ethnic minority and majority
communities. Gender equality is also emphasized in the process of recruitment. ChocoTruck Inc. practices:
a. leadership diversity.
b. power distance.
c. work orientation.
d. elitist management policies.
56. Mauricia Corp., a biotechnology firm, has initiated a program that encourages employees to form groups, on the basis
of a particular characteristic such as race, sex, ethnicity, etc. Mauricia Corp’s initiative is based on the belief that such
programs would help team members to discover their true potential and climb the corporate ladder. Which of the
following is a likely disadvantage of such a set up?
a. It could result in a reduction in productivity.
b. It could lead to divisiveness.
c. It may widen power distance.
d. It may heighten the sense of individualism.
57. Oscar, an extrovert, enjoys meeting new people and traveling to remote areas. He quits his job as an investment
banker to find a new and exciting job that will also give him a high level of work satisfaction. Oscar has now got a job in a
nonprofit organization that requires him to travel to a number of underdeveloped countries and localities to provide his
services. The given scenario is an example of:
a. effective leadership diversity.
b. uncertainty avoidance.
c. a good person–organization fit.
d. cultural intelligence.
58. Clifford Inc., a global media firm, has been experiencing a steady reduction in its global market share. It is found that
the company’s management and administrative positions are occupied by members of the majority community, which is
may be hindering the creative growth of the company. If you were a senior advisor to the top management of the
company, what would you suggest to bring about a positive improvement in the firm?
59. Noah is a senior manager at a multinational durable products manufacturing company. He has recently been assigned
the task of visiting the company’s subsidiaries in other countries to assess their performance and improve business ties.
Noah is a little nervous about this assignment since he has never been to another country on a business agenda and has
very little exposure to foreign cultures. If you were Noah’s boss, what advice would you provide him?
60. Realizing the advantages of a diverse workforce in an organization, Michael, the CEO of a food processing firm,
announces a workforce expansion policy that will concentrate on recruiting people from diverse backgrounds. Michael
calls on his senior HR manager to ask for suggestions on the recruitment policy. If you were the senior HR manager, what
would you suggest to make the recruitment policy workable?