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Answers to Chapter Review Questions
1. Which important trends fuel globalization? (Obj. 1)
a. Shrinking domestic markets
2. Which significant changes in the workforce can we expect over the next 40 years?
(Obj. 1)
Foreign-born persons and their offspring will comprise an ever-growing portion of the total
3. List the five main characteristics of culture. (Obj. 2)
1. Culture is learned.
2. Cultures are inherently logical.
4. Describe five major dimensions of culture. (Obj. 2)
3. Time orientation describes the emphasis placed on time. Is it precious and not to be wasted,
4. Power distance describes the degree to which the less powerful members of society accept
5. Communication style refers to the manner in which people communicate. High-context
5. Name four or more strategies for bridging the gap between cultures and achieving
intercultural proficiency. (Obj. 3)
1. Build cultural self-awareness. Begin to think of yourself as a product of your culture, and
2. Curb ethnocentrism. Resist judging others solely by your own values. Misunderstandings
3. Overcome rigid attitudes such as stereotypes and prejudice by approaching each person as a
6. Describe three processes or attitudes that will help you achieve intercultural competence,
according to M. R. Hammer. (Obj. 3)
7. Does social networking help bridge cultural divides? (Obj. 3)
Because they enable people to connect across vast distances and time zones, social media
networks have the potential to overcome cultural differences, but they can also reinforce them,
8. Describe five specific ways you can improve oral communication with someone who
speaks another language. (Obj. 3)
1. Learn some phrases in the other person’s language.
2. Use simple English, including short words and sentences.
9. Describe at least five ways you can improve written communication with someone who
speaks another language. (Obj. 3)
1. Accommodate the reader in organization, tone, and style.
2. Use short sentences and short paragraphs.
10. What categories of ambiguous expressions should be avoided because they could
confuse readers for whom English is not a first language? (Obj. 3)
11. Are there laws forbidding bribery in the United States, and are they effective in
stopping corruption? (Obj. 4)
The United States has taken the global lead on corruption by passing the Foreign Corrupt
Practices Act of 1977. It prohibits payment to foreign officials for the purpose of obtaining or
retaining business. However, the law applies only to U.S. companies. The Sarbanes-Oxley
Act of 2002 forbids off-the-book bribes. American law does permit payments not exceeding
12. Why is gift giving to customers and business partners problematic, and what is the
recommended limit in most U.S. companies? (Obj. 4)
Many companies suggest $50 as a top limit for gifts. The exchanging of gifts is tricky. In
many non-Western cultures, the gift exchange tradition has become a business ritual. Gifts
13. List seven techniques for making ethical decisions across borders. (Obj. 4)
1. Broaden your view of values and customs in other cultures.
2. Avoid reflex judgments in regard to what is immoral, corrupt, primitive, or unworkable.
3. Find alternative solutions instead of caving in to government payoffs.
14. Name three groups that benefit from workforce diversity and explain why. (Obj. 5)
3. Business organizations benefit from workplace diversity because they endure fewer
15. Describe five guidelines for improving communication among diverse workplace
audiences. (Obj. 5)
1. Seek training. Look upon diversity as an opportunity, not a threat.
2. Understand the value of differences. Diversity in problem-solving groups encourages
Answers to Critical Thinking Questions
1. English is becoming the world’s business language because the United States is a
dominant military and trading force. Why should Americans bother to learn about other
cultures? (Objs. 1, 2, and 5)
Nearly every large U.S. company today is part of a global market, whether it wants to be or
not. Any American company ignoring the global market is in danger of being swallowed up
by foreign competition. Even small U.S companies are looking beyond our borders for
business. Some of our trading partners may speak English but as a second language.
Moreover, although they speak our language, they do not share Euro-North American culture.
2. A stereotype is an oversimplified perception of a behavioral pattern or characteristic
applied to entire groups. For example, the Swiss are hardworking, efficient, and neat;
Germans are formal, reserved, and blunt; Americans are loud, friendly, and impatient;
Canadians are polite, trusting, and tolerant; Asians are gracious, humble, and
inscrutable. In what way are such stereotypes harmless or harmful? (Objs. 2, 3)
These attitudes may or may not accurately describe cultural norms. As we have seen,
stereotypes often do contain a grain of truth because they originate as observations leading to
generalizations. After all, generalizations help us make sense of the world we live in. When
we discuss cultures, we need to be able to make cautious generalizations. However,
unfounded and rigid generalizations about an entire people or culture can lead to bias and
prejudice. To do business successfully when working with other cultures, we ought to
3. It is quite natural to favor one’s own country over a foreign one. To what extent can
ethnocentrism be considered a normal reaction, and when could it become destructive
and unproductive? Provide examples to support your answer. (Objs. 2, 3)
The love of country can express itself in healthy patriotic sentiment or in potentially hateful
jingoism or nationalism. Ethnocentrism can be defined as putting one’s own culture first and
4. Some economists and management scholars argue that statements such as “diversity is
an economic asset” or “diversity is a new strategic imperative” are unproved and
perhaps unprovable assertions. Should social responsibility or market forces determine
whether an organization strives to create a diverse workforce? Why?
(Obj. 5)
Thomas A. Kochan, one of the most respected human resources management scholars in the
country, said that his five-year study shows that “there are no strong positive or negative
effects of gender or racial diversity on business performance.” He went on to say that “the
Other critics of diversity programs assert that market forces, not social engineering, should
determine whether a firm strives to select employees whose characteristics mirror those of the
general population. For example, if customers of your products are new mothers, it makes
Supporters of diversity programs argue that workplace diversity is a positive force, even a
source of competitive advantage. Arguments supporting diversity programs appear in this
5. Ethical Issue: You know that it’s not acceptable to make ethnic jokes, least of all in the
workplace, but a colleague of yours keeps invoking the worst ethnic and racial
stereotypes. How do you respond? Do you remain silent and change the subject, or do
you pipe up? What other options do you have in dealing with such a coworker? Consider
whether your answer would change if the offender were your boss. (Objs. 4, 5)
Answers will vary. Students will probably realize that they will have to choose their battles
wisely; in other words, sometimes they may want to signal to the bigot that they disagree.
ZOOMING IN
Intercultural Lessons for World’s Largest Retailer
Critical Thinking
In its international expansion policy, Walmart at first followed the advice of Harvard
business professor Theodore Levitt. His famous book The Globalization of Markets
advocated standardization, not localization. “Gone are accustomed differences in
national or regional preference,” Levitt wrote. Whereas conventional multinational
companies adapted to “superficial and even entrenched differences within and between
nations,” truly global firms sought to “force suitably standardized products and
practices on the entire globe.” Should companies stick to a standardized approach or
adapt to local markets?
Many analysts believe that multinational companies with a proven business model, such as
Walmart’s discounting strategy, will be most successful if they implement the techniques that
made them successful. For Walmart, this would mean copying the efficiencies of Walmart’s
What domestic and global changes are taking place that encourage the international
expansion of companies such as Walmart?
Like Walmart, many domestic as well as multinational companies are expanding their
operations overseas. This expansion is largely motivated by a desire to increase profits. To do
this, companies need to expand. As domestic markets mature and growth declines, companies
What other U.S. businesses can you name that have merged with foreign companies or
expanded to become multinational in scope? Have you heard of any notable successes
or failures?
Students should be able to name many U.S. companies that are multinational, such as
Johnson & Johnson, Disney, McDonald’s, GM, Intel, Microsoft, Coca-Cola, IBM, General
Electric, and Citigroup. Nearly every large company is now multinational. Not all of them are
enjoying success in their global ventures. One notable international merger involved Daimler
ZOOMING IN
Your Turn: Applying Your Skills at Walmart
Walmart is struggling with image problems at home and abroad, mainly due to its bottom-line,
cost-cutting approach, its conservative human resources policies, low wages and lack of health
insurance, and what some perceive as corporate hubris. At the same time, since at least 2005,
Walmart has embarked on a campaign to burnish its tarnished image. Whatever its motives, the
Ethics Check Questions
Ethics Check, Page 89
Culture Change: From “Sexist” to Gender-Neutral Language
Just a generation ago, businesspeople were businessmen, letter carriers were postmen, and
flight attendants were stewardesses. A sea change in language now dictates gender
neutrality to avoid typecasting. In business, the honorific Ms. is used for all women,
regardless of their marital status. Does language reflect just the current culture, or does it
have the power to effect change?
Introduce examples of other changes in language use that were the result of conscious efforts to
reflect equality between genders or were designed to show greater respect of minorities: The
evolution of epithets for blacks, from Negro to African American, or the movement away from
Ethics Check, Page 93
The World’s Worst Tourists: The “Ugly American” Is Back
The demanding, ethnocentric traveler who finds fault with all that is different abroad is no
longer French. Only a few years ago, tourists from France topped the list of least liked
visitors in one study. But a recent survey among 5,600 travelers from five countries puts
Americans first as the worst. The Irish believe the British are the worst travelers, while the
British picked the Germans as the tourists to hate. Americans rank the Dutch, Irish, Swiss,
and Australians among the best foreign visitors. What may account for such perceptions?
Such discrepancies in survey results may depend on the type of questions asked, the sample
selection, and many other factors because it’s unlikely that any group or nation would become
odious tourists overnight. The Expedia TNS Infratest study that crowned the French the worst
Photo Essay Solutions
Photo Essay, Page 87
To outsiders, a nation’s cultural customs seem arbitrary. However, cultural norms are inherently
logical for people who learn them. The visible customs of dress, gestures, body language, and
