Which of the following statements is true about cultural influences?
A) Culture and trade are independent of each other.
B) Unwanted cultural influence in a nation can cause governments to block imports that
it believes are harmful.
C) The cultures of countries are independent of the effects of exposure to the people and
products of other cultures.
D) The culture of the United States is readily adapted into the local culture of countries
all over the world.
Scenario: Blickinstock at the Crossroads
Auto parts supplier, Blickinstock Ltd., would like to expand its presence in Latin
America. To that end, Blickinstock is trying to decide whether to purchase an existing
company in a remote region of Argentina or build its own subsidiary. Keith Moon,
Blickinstock’s vice president of global business development, will be making a
presentation to the board outlining the company’s options.
Which of the following methods is used by a host country to restrict incoming foreign
direct investment?
A) differential tax rates for earnings abroad
B) insurance to cover the risk of overseas investments
C) low-interest loans to investors
D) performance demands
Scenario: Frankfurter Friday
Betty Cleveland is the vice president of Frankfurter Friday, a highly successful hot dog
joint in Oceania. Her company decides to expand to Asia and identifies China as the
ideal market. Before she leaves for China, she studies their culture extensively and
discovers that the number four is considered extremely unlucky, that not everybody is
fluent in China’s official language-Mandarin-and that punctuality is a highly valued trait
in the country.
Folk customs that spread by cultural diffusion to other regions develop into popular
customs.