CHAPTER 3
Zooming In Critical Thinking Answers
When creating its international expansion policy, Walmart at first followed
the advice of Harvard business professor Theodore Levitt. His famous
article “The Globalization of Markets” advocated standardization, not
localization. “Gone are accustomed differences in national or regional
preferences,” 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 of our Critical Thinking questions and our Ethics situations could be staged as student debates.
Such debates generate considerable student engagement and create greater comprehension and
retention than mere discussions within class. In this question, responses will vary and are definitely
Ted Levitt loved a good controversy and was prone to exaggeration to provoke critical thought, his
students report. Despite his sweeping claim that truly global companies would standardize their
offerings all over the world, Levitt may have agreed that companies have to “balance persistent
This question has no right or wrong answer. Its goal is to make students think about the significance of
culture in the increasingly global and hyperconnected business environment.
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
countries. These consumers want and can afford the kinds of items Americans enjoy.
Walmart relies on its international operations in 27 countries for 28 percent of its sales. The company’s
global business most recently generated $137 billion of its $483 billion total revenue. The company
What other U.S. businesses can you name that have merged with foreign companies or
expanded to become multinational or global? 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.
Companies that most recently failed in China are Revlon, L’Oréal, Best Buy and its German rival Media
Markt, and Yahoo. Struggling companies that are still sticking it out in China include IBM; Rémy
Yum Brands responded to its difficulties by spinning off Yum China, which will become a separate,
Ethics Check Answers
Cultural Change: From Sexist to Gender-Neutral Language
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 the dominance of the
male gender—from manpower or mankind to staff and humankind. Perceptive students will perhaps
recognize that language carries meaning beyond what it denotes on the surface and that it mirrors our
biases and prejudices. You could discuss connotations of words as varied as terrorist, insurgent, rebel,
and freedom fighter, which are often applied to the same group of people by different constituencies.
Bias-free language is discussed in Chapter 4.
Who Are the World’s Worst Tourists?
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 study that crowned the French the worst tourists found that apparently close to 90
percent of the French vacation at home and may, therefore, lack flexibility abroad, appearing demanding.
Because they are used to service charges being included in restaurant bills, they leave small tips. Finally,
their lack of foreign language skills may make them seem arrogant.
British tourists are often young soccer fanatics (“hooligans”), who get drunk and cause trouble. Also,
overall the British have a long-standing reputation for loving the scenery abroad but hating the locals.
[Dale, R. n.d. British and French vie for “worst tourists” title. Center for Strategic & International Studies.]
Discerning students with travel experience will recognize the parallels between some aspects of this
behavior and stereotypical perceptions of Americans abroad. In some past surveys, U.S. tourists actually
ranked close to the top in popularity but were judged the worst dressed.
Critical Thinking Answers
1. When we travel or work abroad, we tend to be perceived not so much as individuals but as
members of racial, ethnic, or national groups. For example, when visiting Europe, Americans
can expect to be questioned on U. S. foreign policy, military actions, and economic influence.
How can you ensure that you function as an effective ambassador of your country when
working and traveling overseas? (
Students may need to learn that when traveling or working abroad, they will be perceived as
representative of the larger U.S. culture and held responsible for or confronted about the policies of
The best way to proceed when challenged abroad is to avoid being dragged into arguments, remain
genial and friendly, and choose topics of conversation that are not confrontational. American students
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?
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 approach each individual as a unique person, a prototype,
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.
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 making it central to
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?
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
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
Supporters of diversity programs argue that workplace diversity is a positive force, even a source of
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 speak 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.
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. However, in some
Zooming In Solution
Your Turn: Applying Your Skills at Walmart
Walmart is struggling with image problems at home and abroad, mainly as a result of its cost-cutting
approach, its conservative human resources policies, low wages, lack of health insurance, and what
However, since at least 2005, Walmart has worked hard to improve its tarnished image. The company
performed remarkably well during Hurricane Katrina, efficiently delivering relief supplies to victims and
earning praise from many for its unparalleled distribution and supply chain management that put FEMA
Activities Solutions
3.1 Minding One’s Intercultural Social Media Manners
a. The lawyer was fired. The demonstrators—teachers, cops, firefighters, and other public workers—were
Lesson: Even more than the rest of us, lawyers and members of similar professions bound by
confidentiality need to exercise restraint when commenting on social media.
b. The comedian and Aflac spokesperson tweeting so insensitively on his @RealGilbert account that he
Lesson: Watch whom you hire as a spokesperson; create guidelines to clarify the boundaries of
propriety and good taste.
Lesson: Monitor your social media accounts 24/7. Moderate comments and participate in discussions.
Do not wait in the hope that a media storm will die down.
Lesson: Acknowledge bad news; time promotions well; and keep your customer service and social
media crews vigilant.
e. Gloria Huang blamed her ill-conceived tweet on unfamiliar software that led her to tweet from the
official account, not her own personal one. The Red Cross averted a PR crisis by acknowledging the
Lesson: Nice recovery by the Red Cross. Harman said that Huang’s original tweet was no big deal:
“We are an organization that deals with life-changing disasters and this wasn’t one of them,” said
Harman, the social media director for the Red Cross. “It was just a little mistake.”
3.2 Analyzing Intercultural Gaffes
a. In this situation, cultural insensitivity plays out on both sides. Susan Kramer should have known or
b. Although companies cannot be expected to test product names for all languages, they should be
aware of the languages and cultures of their customers.
c. The chief of protocol on the Czech side should have done his or her homework. Eager to show off the
host country’s specialty—rabbit—the Czech delegation ignored the visitors’ customs and dietary
d. Americans should try to understand that in high-context cultures, business transactions are more
e. Face saving is important in China. People frown on psychological counseling because it admits
3.3 Mastering International Time
a. Students will find a number of definitions. UTC stands for Coordinated Universal Time. It represents
b. The notation 13.00 indicates 1 p.m. The 24-hour clock is a universal convention of time-keeping in
which the day runs from midnight to midnight and is divided into 24 hours, numbered from 0 to 23. A
c. Probably the best times to talk are 5 or 6 p.m. in Indianapolis, which is 7 or 8 a.m. in Osaka.
d. Probably the best times are 7 or 8 p.m. in Atlanta, which is 8 or 9 a.m. in Singapore.
e. The Arizona-based businessperson should try Skyping between 7 and 8 a.m. Mountain Time to catch
f. Most likely the Russian businessperson was confused about whether to count forward or backward to
3.4 Twitter Opening up Countries and Cultures
To benefit fully from the follow function, students should open a Twitter account if they don’t already have
one (as should you). The account can be set up allowing varying degrees of privacy. The short training
Students who speak foreign languages can explore international tweets. Twitter has become a powerful
3.5 Trek Bicycle Goes Global
Broad lessons that other entrepreneurs can earn from Trek’s international experiences:
a. Large markets are available outside the United States.
b. Don’t assume that the way a product is advertised, packaged, and distributed here will work similarly
across borders.
3.6 Negotiating Traps
a. Because Americans are so legalistic, they are usually more concerned about the letter of the law than
b. Because individuals in other cultures (Asian in particular) want to get to know people on a social basis
c. One sure way to gain the respect of foreign business partners is to speak their language. Mastering only a
few phrases at first demonstrates a great respect for them and their culture. Because language translation
d. People who are speaking English did not necessarily learn it as their first language. Even those who
e. The saying “rank has its privilege” is very true, especially in Asian cultures. Knowing the chain of
command and giving the proper deference at each level is of utmost importance. If strict rules of
conduct are not followed, someone could lose face in front of employees, who are not considered
3.7 Learn to Speak a Foreign Language or Just a Few Phrases With Livemocha or Busuu
Both social networks resemble Facebook in that users register and create profiles. Livemocha is a
Seattle-based commercial language learning network, now owned by Rosetta Stone. Calling itself the
largest language learning community in the world, Livemocha claims to have 16 million registered users
3.8 Checking in With Facebook
Keeping up with Facebook’s staggering growth is a challenge. The latest numbers cited here were
collected by several tracking websites mentioned in the activity, Socialbakers and Internet World Stats.
Other useful sources are We Are Social and Pew Research Internet. The recent Facebook use statistics
show a mixed picture in Asia, where despite healthy gains in Vietnam, Thailand, and South Korea, the
3.9 Examining Cultural Stereotypes
This activity drives home the limiting nature of stereotypes, even the positive ones. Very few of us are
comfortable representing our entire culture, although others may perceive and designate us as
ambassadors of our country of origin. Students may find some stereotypes flattering, but most will
3.10 Analyzing a Problem International E-Mail
The letter is poorly organized, poorly written, and overly casual; but let’s just focus on the difficulty it might
cause readers unfamiliar with our language.
a. Slang: royally turned off, put down our customers
b. Idioms: on-again/off-again haggling, take the bull by the horns
c. Two-word verbs: our good name to keep up (instead of maintain), fire off (instead of send)
3.11 Make Yourself at Home: Ambiguous Expressions Invite New Friends
Idioms: by leaps and bounds, crossing bridges before coming to them, grin and bear it, with flying colors,
Slang: getting the hang of it, get the drift, cool, bad (when it means the opposite), just ballpark it, chew
Acronyms: ASAP (as soon as possible), OSHA (Occupational Safety and Health Administration), PIN
Abbreviations: FYI (for your information), BTW (by the way), ISP (Internet Service Provider), DJ (disc
Jargon: Microspeak expressions, a lexicon from former Microsoft employee: disambiguate (to clarify),
EOM (end of message), facemail (technologically backward means of communication involving walking to
3.12 Greasing Palms Abroad: Baksheesh, Mordida, and Kumshah
a. Your company would be prohibited from making cash payments to government officials involved in
making decisions regarding a contract for your firm. This is a bribe and could be prosecuted. The
most prominent case of this kind occurred in 1995. Lockheed Martin pleaded guilty to making a
b. This is an actual case. The vice president of an aircraft parts company was convicted for, among
other things, using his Diner’s Club card to charge the honeymoon present.
c. The government considered this “collection service fee” a bribe and convicted the official.
d. In another real case, the U.S. Justice Department investigated a company that gave gifts to officials
3.13 Investigating Gifts, Gratuities, Kickbacks, and Entertainment Limits
Students will find many interesting restrictions. For example, Blue Cross Blue Shield of Illinois limits gifts,
gratuities, and favors at a “nominal value of $50 or less.” Its code of conduct further states: “The value of
3.14 Investigating Gender Talk
You might ask your students to conduct their own studies on this question by observing men and women
for one week. In the workplace, in classrooms, in casual surroundings—do the interpretations of Tannen
Which style is more appropriate for today’s team-based management? Some theorists believe that as we
move away from authoritative, hierarchical management methods toward consensus-building, participative
3.15 Encouraging Gender Diversity in Corporations
Answers will vary. Most students will probably consider the European approach too harsh, an example of
the nanny state. This may prompt a discussion of cultural differences between Europeans, who pay
This assignment could lead to a research task; for example, students could be asked to find evidence that
shows the benefits of diverse boards and greater female (and minority) representation across all business
Interested students could also search for more information about the European Union’s efforts to bring
more women to the table. German chancellor and leader of the conservative Christian Democrats, Angela
Tech companies have been under fire for their low percentages of women in leadership positions. Even at