50. Which of the following is defined as a culture in which communication is used to enhance personal
relationships?
a.
Interpersonal culture
b.
High-context culture
c.
Power culture
d.
Low-context culture
e.
Family-oriented culture
51. Which of the following countries possesses a high degree of assertiveness?
a.
Spain
b.
Sweden
c.
Japan
d.
Iceland
e.
Switzerland
52. Which of the following countries possesses a low degree of gender differentiation?
a.
China
b.
Brazil
c.
Italy
d.
South Korea
e.
Denmark
53. Which of the following countries possesses a high performance orientation?
a.
Israel
b.
Sweden
c.
Taiwan
d.
Russia
e.
Venezuela
54. Countries that use several languages
a.
are ethnocentric.
b.
are geocentric.
c.
are likely to have high uncertainty avoidance.
d.
have linguistic pluralism.
e.
are polycentric.
55. In a(n) ____, people use communication primarily to exchange facts and information.
a.
power culture
b.
informational culture
c.
high-context culture
d.
mid-context culture
e.
low-context culture
56. A ____ interaction requires more time because a relationship has to be developed, and trust and
friendship must be established.
a.
high-context
b.
sales
c.
business
d.
low-context
e.
personal
57. A cultural attitude marked by the tendency to regard one’s own culture as superior to others is called
a.
ethnocentrism.
b.
polycentrism.
c.
geocentrism.
d.
technocentrism.
e.
none of these.
58. When organization managers have a(n) ____ attitude, they value employees as an end in themselves.
a.
ethnocentric
b.
humanistic
c.
instrumental
d.
pluralistic
e.
performance
59. When organization managers have a(n) ____ attitude, they treat employees as resources to be used.
a.
ethnocentric
b.
humanistic
c.
instrumental
d.
pluralistic
e.
performance
60. How many nations signed on for negotiation when GATT was created in 1947?
a.
15
b.
23
c.
28
d.
40
e.
57
61. The European Union has expanded to a ____-nation alliance.
a.
14
b.
12
c.
27
d.
16
e.
21
62. Which of the following has a goal to guide the nations of the world toward free trade and open
markets?
a.
GATT
b.
WTO
c.
GLOBE
d.
EU
e.
NAFTA
63. The ____ is a single European currency that replaced 16national currencies and unify a huge
marketplace.
a.
Mark
b.
Franc
c.
MFN
d.
Euro
e.
Pound
64. Which organization originated and supports the idea of small businesses operating on a global level?
a.
GLOBE
b.
EU
c.
NAFTA
d.
ASEAN
e.
GATT
65. Which of the following companies place an emphasis on their home countries?
a.
Polycentric
b.
Geocentric
c.
Ethnocentric
d.
Global
e.
Regiocentric
66. All of the following are components of cultural intelligence, EXCEPT:
a.
Physical
b.
Cognitive
c.
Emotional
d.
Analytical
e.
All of these
67. Which of the following refers to the frustration and anxiety that result from constantly being subjected
to strange and unfamiliar cues about what to do and how to do it?
a.
Societal chaos
b.
Civilization distress
c.
Culture confusion
d.
Societal disorder
e.
Culture shock
68. Which of these is a low-context culture?
a.
German
b.
Chinese
c.
Korean
d.
Arab
e.
Japanese
69. All of the following are considered emerging economies EXCEPT:
a.
Brazil
b.
Russia
c.
India
d.
China
e.
Canada
70. The extent to which trade and investments, information, social and cultural ideas, and political
cooperation flow between countries is called:
a.
Standardization
b.
Industrialization
c.
Globalization
d.
Internationalism
e.
Linguistic pluralism
71. Creative Coverings is a small interior design company owned and managed by Lisa Smith. Since the
company was established seven years ago, Lisa has only worked with clients near her hometown in
Maryland. Creative Coverings fits into which stage of globalization?
a.
Domestic
b.
Regional
c.
International
d.
Multinational
e.
Global
72. Exporting, licensing, and direct investing are called __________ strategies because they represent
alternative ways to sell products and services in foreign markets.
a.
globalized
b.
expansion
c.
retrenchment
d.
market entry
e.
concentrated business
73. For the past several years, foreign companies have invested more in business in ________ than in any
other place in the world.
a.
Brazil
b.
India
c.
China
d.
United States
e.
Russia
74. With its large English-speaking population, _______ has numerous companies offering services such
as call-center operations, data-processing, computer programming, and technical support.
a.
Greenland
b.
Russia
c.
China
d.
Mexico
e.
India
75. A.R.C. is a large non-profit humanitarian aid organization that has been forced to pull out of several
African markets in recent years due to civil wars and large-scale violence. This demonstrates which
frequently cited problem for international companies?
a.
Political instability
b.
Communist governments
c.
Economic instability
d.
Political risk
e.
Financial risk
76. Jana has a high tolerance for the unstructured, the unclear, and the unpredictable. She can best be
described as having:
a.
High uncertainty avoidance
b.
Low uncertainty avoidance
c.
High degree of individualism
d.
Low degree of individualism
e.
Low level of power distance
77. Kim, a Japanese expatriate working in Denmark, tends to use communication primarily to build
personal social relationships. She feels that relationships and trust are more important than business.
Kim is surprised that her business associates in Denmark do not share the same views. Based on this
information, Kim most likely grew up in what type of culture?
a.
Human-oriented
b.
Passive
c.
Assertive
d.
Low-context
e.
High-context
78. Sam is known by his colleagues as a great communicator, with an uncanny ability to shift speech
patterns, expressions, and body language to be in tune with people from different cultures. Based on
this example, Sam is strong in which component of cultural intelligence?
a.
Cognitive
b.
Emotional
c.
Physical
d.
Tangible
e.
Intangible
79. In 2010, which of the following countries formed a free trade area with the ten countries that make up
the Association of Southeast Asian Nations (ASEAN)?
a.
Laos
b.
United States
c.
Mexico
d.
China
e.
Japan
80. ________ is a concept that proposes that corporations can alleviate poverty and other social ills by
selling to the world’s poorest people.
a.
Cream of the crop
b.
Skimming the barrel
c.
Bottom of the pyramid
d.
Top of the peak
e.
Base hierarchy
81. The Digitec company has recently decided to design and manufacture a laptop that retails for under
$50, in an effort to make information technology available to people in places like rural Africa and
rural India. This is known as what type of strategy?
a.
Bottom of the pyramid strategy
b.
Skimming the barrel strategy
c.
Cream of the crop strategy
d.
Top of the peak strategy
e.
Base price strategy
82. The phases of globalization are:
a.
domestic, international, multinational, and global
b.
global, multinational, international, and democratic
c.
domestic, international, multinational, and multidomestic
d.
cottage, domestic, international, and multinational
e.
domestic, cottage, international, and global
83. In the ____ stage, companies may be in the competitive positioning stage of globalization.
a.
international
b.
domestic
c.
global
d.
stateless
e.
multinational
84. Cultural sensitivity is least important in the ____ stage of corporate international development.
a.
domestic
b.
international
c.
multinational
d.
global
e.
interdomestic
CASE
Case – Doing Business in Eritrea
Eritrea is in Eastern Africa. Its size is slightly bigger than the state of Pennsylvania. Eritrea currently
hosts a UN peacekeeping operation that is monitoring a 25 km-wide Temporary Security Zone on the
border with Ethiopia. An international commission, organized to resolve the border dispute, posted its
findings in 2002 but final demarcation is on hold due to Ethiopian objections. Since gaining its
independence from Ethiopia on 24 May 1993, Eritrea has faced the economic problems of a small,
desperately poor country. Like the economies of many African nations, the economy is largely based
on subsistence agriculture, with 80 percent of the population involved in farming and herding. In 2004,
it took 13.788 nakfa (the Eritrean currency) to get one U.S. dollar, and its per capita income was equal
to 900 U.S. dollars. It has a total of 306 kilometers of railroad, 874 kilometers of paved roads, and four
airports with paved runways. Its people speak a variety of languages including Afar, Arabic, Tigre and
Kunama, Tigrinya, and other Cushitic languages. The Eritrean society is generous with whatever
resources it has and its people place a high value on helping others.
1. Refer to the scenario above. Eritrea would be classified as a(n):
a. risk aversive nation due to its security zone
b. cultural oasis given the variety of languages spoken there
c. stable country for operation
d. LDC because of low per capita income
e. LDC because its people are altruistic
2. Refer to the scenario above. Having such limited roads and railways indicates Eritrea has:
a. a geocentric orientation
b. a high power distance sensibility
c. transportation pluralism
d. an inadequate infrastructure
e. a growth stabilization strategy
3. Refer to the scenario above. Within the legal-political environment, Eritrea would:
a. be multicultural
b. be ethnocentric
c. have an inadequate infrastructure
d. offer a political risk
e. have a pluralistic orientation
4. Refer to the scenario above. In terms of the dimensions that explain cultural differences, Eritrea
appears to have a high degree of:
a. humane orientation
b. individualism
c. ethnocentrism
d. masculinity
e. pluralistic
5. Refer to the scenario above. The variety of languages spoken within Eritrea’s sociocultural
environment means that the nation:
a. is ethnocentric
b. is geocentric
c. is likely to have high uncertainty avoidance
d. has linguistic pluralism
e. is politically unstable
COMPLETION
1. ____________________ means engaging in the international division of labor so that manufacturing
can be done in countries with the cheapest sources of labor and supplies.
2. ____________________ is the barter of products for products rather than the sale of products for
currency.
3. ____________________ is the management of business operations conducted in more than one
country.
4. When it comes to economic development, a currently developing country is also called a(n)
____________________.
5. ____________________ is the criterion traditionally used to classify countries as developed or
developing.
6. A country’s physical facilities that support economic activities make up its ____________________.
7. ___________ (objects, taboos, holidays) is a sociocultural factor in the international environment.
8. The risk of loss due to actions by host country governments is known as _____________.
9. Riots, revolutions, civil disorders, and frequent changes in government that affect the operations of an
international company shows ______________ in a country.
10. Companies need to be cautious of ______________ and ____________ when going international
because they differ from country to country.
11. A nation’s _____________ includes the shared knowledge, beliefs, and values, as well as the common
modes of behavior and ways of thinking, among members of a society.
12. The degree to which people accept inequality in power among institutions, organizations, and people is
called ___________.
13. A value characterized by people’s intolerance for uncertainty and ambiguity and resulting support for
beliefs that promise certainty and conformity refers to _____________.
14. A preference for a loosely knit social framework in which individuals are expected to take care of
themselves is called ____________.
15. A preference for a tightly knit social framework in which individuals look after one another and
organizations protect their members’ interests refers to _________.
16. ____________________ stands for preference for achievement, heroism, assertiveness, work
centrality (with resultant high stress), and material success.
17. ____________________ reflects the values of relationships, cooperation, group decision making, and
quality of life.
18. In countries where women are often in positions of high status, the Globe Project would describe that
culture as high in ____________.
19. A country that places emphasis on fairness and values kindness would be described by the Globe
Project as high in _____________.
20. In a(n) ___________, people use communication primarily to exchange facts and information.
21. __________ means that people have a tendency to regard their own culture as superior to other
cultures.
22. An alliance begun in 1957 to improve economic and social conditions among its members,
it has evolved into the 27-nation __________.
23. The _________ is the single European currency that has replaced 16 national currencies.
24. __________ went into effect in early 1994, effectively creating a megamarket among the U.S.,
Canada, and Mexico.
25. _____________ refers to a person’s ability to use reasoning and observation skills to interpret
unfamiliar gestures and situations and devise appropriate behavioral responses.
26. __________ refers to the frustration and anxiety that result from constantly being subjected to strange
and unfamiliar cues about what to do and how to do it.
27. The frustration and anxiety that results from constantly being subjected to strange and unfamiliar cues
about what to do and how to do it is called _____________.
SHORT ANSWER
1. List the four stages of globalization.
2. List three examples of a country‘s infrastructure.
3. List the four dimensions of national value systems identified by Hofstede.
4. List five of the countries that make up the European Union (EU).
5. List the three components of cultural intelligence.
ESSAY
1. Describe the four stages of globalization with specific reference to strategic orientation, stage of
development, cultural sensitivity, and manager assumptions.
2. What is global outsourcing? Identify a unique variation of global outsourcing.
3. Identify and briefly explain at least two key factors in economic, sociocultural and political-legal
environments that affect an organization.
4. Briefly explain the difference between high power distance and low power distance.
5. Describe GATT and the World Trade Organization.
6. Explain NAFTA.
7. Briefly describe the social characteristic of ethnocentrism and explain how this can have an impact on
the success of an international manager.