d.
avoid uncertainty.
e.
none of these.
46. A value that reflects a loosely knit social framework in which individuals are expected to take care of
themselves is called:
a.
culture.
b.
individualism.
c.
ethnocentrism.
d.
masculinity.
e.
power distance.
47. 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.
48. Collectivist values are represented in the social framework of which of these?
a.
The United States
b.
Australia
c.
Mexico
d.
Great Britain
e.
All of these
49. _____ refers to a value characterized by people’s intolerance for unpredictability and ambiguity and
resulting support for beliefs that promise certainty and conformity.
a.
Power distance
b.
Uncertainty avoidance
c.
Certainty avoidance
d.
Conformity seekers
e.
None of these
50. Which of these reflects a cultural preference for cooperation, group decision making, and quality of
life?
a.
Individualism
b.
Collectivism
c.
Masculinity
d.
Femininity
e.
Power distance
51. Which of the following countries possesses a high performance orientation?
a.
Israel
b.
Sweden
c.
Taiwan
d.
Russia
e.
Venezuela
52. According to Manager’s Shoptalk in Chapter 4, what does the gesture of scratching one’s head usually
mean in Russia?
a.
“You’re crazy.”
b.
“I am listening carefully.”
c.
“I want to get to know you better.”
d.
“I’m confused or skeptical.”
e.
“No.”
53. According to Manager’s Shoptalk in Chapter 4, one of the most universal gestures is:
a.
arm up, shaking back and forth (waving).
b.
scratching your chin (thinking).
c.
a smile (happiness or politeness).
d.
closing your eyes (boredom).
e.
a pat on the back (congratulations).
54. Austria’s cultural preference is for achievement, heroism, assertiveness, and material success. This
would be considered:
a.
power distance.
b.
individualism.
c.
masculinity.
d.
ethnocentrism.
e.
collectivism.
55. One of Hofstede’s social values that was developed later is:
a.
power distance.
b.
uncertainty avoidance.
c.
masculinity.
d.
collectivism.
e.
long-term orientation.
56. Recent research by the GLOBE project has extended _____ research and offered new insights for
managers.
a.
Hofstede’s
b.
Walton’s
c.
Weber’s
d.
Fayol’s
e.
Gilbreth’s
57. All of the following are cultural dimensions as defined by the GLOBE Project, except _____.
a.
assertiveness
b.
gender differentiation
c.
social collectivism
d.
humane orientation
e.
masculinity
58. In countries where women are often in positions of high status, the Globe Project would describe that
culture as low in _____.
a.
assertiveness
b.
uncertainty avoidance
c.
gender differentiation
d.
societal collectivism
e.
performance orientation
59. A country that places emphasis on fairness and values kindness would be described by the Globe
Project as high in _____.
a.
assertiveness
b.
uncertainty avoidance
c.
gender differentiation
d.
humane orientation
e.
societal collectivism
60. Which of the following countries possesses a high degree of assertiveness?
a.
Spain
b.
Sweden
c.
Japan
d.
Iceland
e.
Switzerland
61. Which of the following countries possesses a low degree of gender differentiation?
a.
China
b.
Brazil
c.
Italy
d.
South Korea
e.
Denmark
62. 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
63. 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
64. 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.
65. 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
66. How many nations signed on for negotiation when GATT was created in 1947?
a.
15
b.
23
c.
28
d.
40
e.
57
67. 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
68. Which of these is a low-context culture?
a.
German
b.
Chinese
c.
Korean
d.
Arab
e.
Japanese
69. 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
70. 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
71. 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
72. The _____ is a single European currency that replaced 12 national currencies and unify a huge
marketplace.
a.
Mark
b.
Franc
c.
MFN
d.
Euro
e.
Pound
73. 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
74. Carrie’s Car Care receives more than 25% of its total sales revenues from operations outside of the
United States. Carrie’s would be considered a:
a.
foreign national.
b.
wealth company.
c.
multinational corporation.
d.
globalization corporation.
e.
None of these.
75. Which of the following characteristics distinguish a multinational corporation?
a.
Top management is expected to take a global perspective.
b.
The corporation is controlled by a single management authority.
c.
It is managed as an integrated worldwide business system.
d.
All of these
e.
Top management is expected to take a global perspective and The corporation is
controlled by a single management authority only.
CASE
Scenario – Sharon Cannon
Sharon Cannon was an MBA student in Detroit, Michigan, with a managerial position at the Ford
Motor Company plant. She was invited to join a company that had entered into a joint venture with a
German firm to manage a Volkswagen plant. Sharon would be under contract for one year, with an
option to renew for a total of three years. Her salary would be 350% more than she was currently
earning, and she would be given two all-expenses paid vacations each year. The money and the
benefits sounded very nice, but Sharon wasn’t sure what the best choice would be.
1. If she should decide to take the job, she will be most successful in a foreign assignment if she has:
a.
culture shock.
b.
cultural intelligence.
c.
linguistic pluralism.
d.
ethnocentrism.
e.
geocentrism.
2. The degree of international involvement for the joint venture is an example of:
a.
outscoring.
b.
exporting.
c.
licensing.
d.
direct investing.
e.
greenfield venture.
3. The American firm joining in the joint venture:
a.
faces lower risk than if it were using a wholly-owned foreign affiliate.
b.
enjoys greater control than is it were using the wholly-owned affiliate.
c.
can anticipate a lower cost than a company that uses global outscoring.
d.
all of these.
e.
none of these.
COMPLETION
1. MNCs that are oriented toward the markets of individual foreign host countries are considered _____.
2. MNCs that are truly world-oriented and favor no specific country are considered _____.
3. A multinational corporation typically receives at least _____% of its total sales revenues from outside
the parent’s home country.
4. _____ means engaging in the international division of labor so that manufacturing can be done in
countries with the cheapest sources of labor and supplies.
5. Whereby a company builds a subsidiary from scratch in a foreign country, is referred to as a(n) _____,
and is the most risky type of direct investment.
6. _____ is the management of business operations conducted in more than one country.
7. When it comes to economic development, a currently developing country is also called a(n) _____.
8. _____ is the criterion traditionally used to classify countries as developed or developing.
9. The risk of loss due to actions by host country governments is known as _____.
10. Riots, revolutions, civil disorders, and frequent changes in government that affect the operations of an
international company shows _____ in a country.
11. A country’s physical facilities that support economic activities make up its _____.
12. 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.
13. The degree to which people accept inequality in power among institutions, organizations, and people is
called _____.
14. A value characterized by people’s intolerance for unpredictability and ambiguity and resulting support
for beliefs that promise certainty and conformity refers to _____.
15. A preference for a loosely knit social framework in which individuals are expected to take care of
themselves is called _____.
16. A preference for a tightly knit social framework in which individuals look after one another and
organizations protect their members’ interests refers to _____.
17. _____ stands for preference for achievement, heroism, assertiveness, work centrality (with resultant
high stress), and material success.
18. _____ reflects the values of relationships, cooperation, group decision making, and quality of life.
19. In countries where women are often in positions of high status, the Globe Project would describe that
culture as low in _____.
20. A country that places emphasis on fairness and values kindness would be described by the Globe
Project as high in _____.
21. In a(n) _____, people use communication primarily to exchange facts and information.
22. _____ means that people have a tendency to regard their own culture as superior to other cultures.
23. An alliance begun in 1957 to improve economic and social conditions among its members,
it has evolved into the 27-nation _____.
24. The _____ is the single European currency that has replaced 12 national currencies.
SHORT ANSWER
1. List three examples of a country’s infrastructure.
2. List the three examples of direct investing mentioned in your text.
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).
ESSAY
1. Briefly describe the social characteristic of ethnocentrism and explain how this can have an impact on
the success of an international manager.
2. What is global outsourcing? Identify a unique variation of global outsourcing.
3. Direct investing means that the company is involved in managing the productive assets in a foreign
country. There are three options for direct investing. Name and compare these three options.
4. Identify and briefly explain at least two key factors in economic, sociocultural and political-legal
environments that affect an organization.
5. Briefly explain the difference between high power distance and low power distance.
6. Describe GATT and the World Trade Organization.
7. Explain NAFTA.