END-OF-CHAPTER GUIDE
*Review Questions and Answers
*Critical Discussion Questions and Answers
*Global Action
*Closing Case
REVIEW QUESTIONS AND ANSWERS
1. ON CULTURE: As you review how cultures differ from each other, imagine that you
want to develop a flexible and mobile work force that is not controlled by a given culture
but could easily relocate to countries with a variety of different cultures. You want people
who can easily and effectively fit in so as to be accepted by employees and customers. In
your opinion, what are some of the barriers or issues that you would encounter, and how
might you achieve your objective?
There are many problems that students might mention. In many cultures, interactions
with locals may at some point involve food and/or drink. A person who totally abstains
from alcohol may not wish to participate in a toast even if the person has only water in
2. Compare PengAtlas Map 1.4 (Religious Heritage) and Map 1.5 (Education Levels
Around the World). Which do you think has a more powerful effect in both the cultural
and economic realm? Why? If your answer is “Both of the above,” is one of the two a bit
more powerful in creating a unified culture, and one more powerful in creating a dynamic
economy? Explain your answer.
Students should be encouraged to give their views and the reasons for those views.
However, clearly there is a relationship between average educational levels in a region
Compare PengAtlas Map 3.2 (Top Reformers) with Maps 1.4 and 1.5. Are there any
relationships between reformers and religious heritage? Why or why not? If there are any
relationships, are they causal or coincidental? Any relationship between reformers and
educational level? Why or why not? If there are any relationships, are they causal or
coincidental? Defend your answer.
There does not seem to be any relationship between reformers and religion but (with a
few prominent exceptions) some countries that are not among the most educated were
3. ON CULTURE: Suppose the education system of a given country teaches values that can
make it very difficult to do business profitably in the country. Is that an impossible
barrier, or is there anything that can be done to change that or cope with it? Defend your
answer.
Many educators realize that not all students go along with what they are taught. In the
age of the Internet, people receive ideas and information from a variety of sources
4. Non-verbal communication (e.g., tone of voice, gestures, and facial expressions) can be
important in all cultures, but would it be more important in a high-context or low-context
culture? Why?
As a general rule, nonverbal context tends to be more important in a high-context
5. What are the pros and cons of doing business in a culture characterized as individualistic?
An organization that is aggressive and competitive and has personnel who can set the
6. What are the pros and cons of doing business in a culture characterized as collectivist?
Sometimes the collective effort of a group may exceed what could be done individually.
Some countries have a long tradition of bribery for public officials. Is it “ethical imperialism” to
prohibit companies headquartered in one’s own country from engaging in bribery when doing
business in other countries with such traditions?
Students will have different opinions. It would easier to argue ethical imperialism if one
7. Why is the fight against corruption a long-term battle?
Corruption has been an inherent (and often accepted) practice throughout much of
8. Does corruption always involve only money? If not, what else may be involved?
Students may develop many possibilities including sex, career advancement, helping
9. Although a proactive strategy may always seem most desirable in dealing with ethical
challenges, are there any circumstances under which a reactive strategy may be the best
strategy or even the only strategy? Explain.
There can be many reasons why a proactive strategy might not work. For example, there
10. In dealing with changing global norms, does that mean that you should reject your own
values and go along with whatever now seems to be in vogue? Defend your answer.
It might mean carefully examining your values to make sure that you feel they are
CRITICAL DISCUSSION QUESTIONS AND ANSWERS
1. ON CULTURE: When you take an airline flight, the passenger sitting next to you tries to
have a conversation with you. He or she asks, “What do you do?” You would like to be
nice, but don’t want to give too much information about yourself (such as your name).
How would you answer this question? A typical US manager may say: “I am a marketing
manager”—without mentioning the employer. A typical Japanese manager may say: “I
work for Honda.” Why are there such differences? How would you answer this question?
The U.S. tends to be more individualistic and thus a manager would respond by saying
2. ON ETHICS: Suppose you work for a New Zealand company exporting a container of
kiwis to Haiti or Iraq. The customs official informs you that there is a delay in clearing
your container through customs, and the delay may last a month. However, if you are
willing to pay an “expediting fee” of US$200, he will try to make it happen in one day.
What are you going to do?
It should be noted that there was an amendment to the Foreign Corrupt Practices Act
(FCPA) which deals with so-called “grease payments.” In essence, in such a case it
3. ON ETHICS: Most developed economies have some illegal immigrants. The United
States has the largest number of illegal immigrants in the country: approximately 10 to 11
million. Without legal US identification documents, they cannot open bank accounts or
buy houses. Many US firms have targeted this population, accepting their ID issued by
their native countries and selling them products and services. Some Americans are
furious with these business practices. Other Americans suggest that illegal immigrants
represent a growth engine in an economy with relatively little growth elsewhere. How
would you participate in this debate?
This is a question in which the answer is not as important as the thought process and the
ability to clearly articulate. The discussion may be hindered by failing to distinguish
between two types of immigrants: those here legally and those who are not. Many would
argue that America has always welcomed foreigners and that immigrants are often
GLOBAL ACTION
1. ON CULTURE: Religion is an integral component of your company’s operations because
it manufactures food products according to Islam’s Halal requirements. Top management
wants information concerning the largest populations of Islam worldwide in order to
develop its distribution capabilities. Provide a report with any information relevant to this
company-wide initiative. What are your recommendations?
Exercise 1 Answers
Ask students to form groups or work independently to search for a country with a large
Search Term: names of countries
2. One approach to understanding corruption perceptions is to compare information across a
variety of countries. Your company has had operations in South America for some time.
However, there has not been an internal evaluation of perceived regional corruption to
date. Therefore, you have been asked to provide insight on this topic for each country in
South America. Based on an annual corruption perceptions index, develop a brief report
and recommendations for the entire company.
Exercise 2 Answers
One resource which can be used is “Transparency International: Corruption Perceptions
Index”. This website can be found by entering the search term “annual corruption
CLOSING CASE DISCUSSION GUIDE AND ANSWERS
Emerging Markets: Monetizing the Maasai Tribal Name
The Maasai tribe in Africa has a unique, well-known name. Companies have used Maasai to
sell everything from vehicles to pillows. Regardless of how much money companies have
made by using the Maasai name, the Maasai tribe has not received anything for the use of its
name.
Consider breaking the class into groups that represent each of the perspectives presented in
the following questions. The groups can present each perspective with supporting
information. Another option is holding a mock trial in which representatives from each group
testify by answering questions asked by students acting as lawyers.
1. ON ETHICS: Assuming you can afford (and are interested in) some of the “Maasai”
products, would you like to pay more for these products if royalties are paid to the
Maasai?
This is the first perspective. Students should realize that higher prices for consumers are
2. ON ETHICS: As CEO of one of the tribes mentioned, how are you going to respond?
This is another perspective on the question of royalties for the use of the Maasai name.
The company can’t lose money, so it has to pass the cost of the royalties to consumers in
3. ON ETHICS: If you were a judge in the home country of any of these firms named, how
would you proceed with the legal dispute (assuming MIPI can eventually represent the
tribe and press legal charges)?
