Test Bank for International Business: The Challenges of Globalization, 9th Edition

International Business: The Challenges of Globalization, 9e (Wild) Chapter 2 Cross-Cultural Business 1) ________ consists of specific learned norms based on attitudes, values, and beliefs of a group of people. A) Ethnology B) Civilization C) Culture D) Doctrine Answer: C AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 2) Ethnocentricity can be defined as the ________. A) scientific description of individual human societies B) systematic study of an ethnic group’s religious core C) merging of all ethnic practices into one homogeneous culture D) belief that one’s own ethnic group or culture is superior to that of others Answer: D AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 3) Detailed knowledge about a culture that enables people to work happily and effectively within it is called ________. A) cultural literacy B) cultural imperialism C) cultural diffusion D) cultural divergence Answer: A AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 1 Copyright © 2019 Pearson Education, Inc. 4) Businesspeople seeking to understand more about another culture in order to successfully conduct business within that culture would be best advised to do which of the following? A) observe the behavior of people who have gained respect within that cultural environment B) rely on stereotypes, which are based on averages, to gain an understanding of the culture C) avoid cultural research studies because they perpetuate unjustified stereotypes and behaviors D) memorize the cultural variations that are typically encountered in a specific cultural environment Answer: A AACSB: Diverse and multicultural work environments Skill: Application Difficulty: Hard LO: 2.1: Explain culture and the need for cultural knowledge. 5) Which of the following is defined as a group of people who share a unique way of life within a larger, dominant culture? A) macroculture B) subculture C) cultural universal D) monoculture Answer: B AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 6) Certain attitudes can link groups, such as managers, from different nations more closely than managers within a given nation. As a result, international businesspeople should most likely ________. A) assume that there are few significant cultural differences among nations B) examine relevant groups when comparing nations C) adopt universal operating methods D) avoid cultural imperialism Answer: B AACSB: Diverse and multicultural work environments Skill: Application Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 2 Copyright © 2019 Pearson Education, Inc. 7) Which of the following is a cultural component that implies gauging the beauty and appeal of artwork? A) customs B) mores C) folkways D) aesthetics Answer: D AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 8) It is most accurate to say that within most nations’ borders, people largely share such essential attributes as ________ and ________. A) work attitudes; occupations B) lifestyles; education level C) education level; ethnicity D) values; language Answer: D AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 9) Which of the following terms is used to refer to the positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts? A) customs B) attitudes C) traditions D) values Answer: B AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 10) Which of the following statements is true of attitudes? A) Over the years, they become more rigid than values. B) They are learned from role models. C) Because they’re formed within a cultural context, they mirror the attitudes of surrounding countries. D) They are developed only for the most important aspects of life. Answer: B AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.1: Explain culture and the need for cultural knowledge. 3 Copyright © 2019 Pearson Education, Inc. 11) A(n) ________ is anything that represents a culture’s way of life, including gestures, material objects, traditions, and concepts. A) social structure B) social status C) cultural baggage D) cultural trait Answer: D AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 12) ________ is increasing the pace of both cultural diffusion and cultural change. A) Collectivism B) Enculturation C) Fundamentalism D) Globalization Answer: D AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 13) Contact among countries brings about cultural change, which is a process called ________. A) cultural collision B) cultural imperialism C) cultural diffusion D) polycentrism Answer: C AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 14) Cultural change occurs when people integrate into their culture the gestures, material objects, traditions, or concepts of another culture through ________. A) ethnocentrism B) cultural diffusion C) social stratification D) xenocentrism Answer: B AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 4 Copyright © 2019 Pearson Education, Inc. 15) The practice of exchanging rings at weddings, which was initially a pagan ritual, is now followed by most people across the world. Which of the following does this illustrate? A) cultural literacy B) cultural encoding C) cultural diffusion D) cultural lag Answer: C AACSB: Diverse and multicultural work environments Skill: Application Difficulty: Hard LO: 2.1: Explain culture and the need for cultural knowledge. 16) Which of the following terms is used to refer to habits or ways of behaving in specific circumstances that are passed down through generations? A) customs B) attitudes C) prejudices D) aesthetics Answer: A AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. Scenario: The French Government The French Government has placed many restrictions upon the use of the English language within their borders. They argue that the inflow of English movies, music, and literature is responsible for the dilution of their rich culture. 17) Their argument is vulnerable to criticism because ________. A) most restaurants still display their menu cards in French B) they fail to take other social and cultural factors into account C) they do not distinguish between movies made by studios in England and movies made in Hollywood D) no other country screens French movies or star French actors Answer: B AACSB: Reflective thinking Skill: Critical Thinking Difficulty: Hard LO: 2.1: Explain culture and the need for cultural knowledge. 5 Copyright © 2019 Pearson Education, Inc. 18) Surveys conducted by a group of sociologists show that French children display more familiarity with the superheroes of Hollywood movies than with the heroes of their traditional folklore. The French Government can use this fact to prove the effect of ________ within their country. A) cultural imperialism B) social stratification C) ethnocentrism D) racism Answer: A AACSB: Diverse and multicultural work environments Skill: Application Difficulty: Hard LO: 2.1: Explain culture and the need for cultural knowledge. 19) The French Government promotes the concept of ________ by building museums and monuments to preserve the legacies of important events and people. A) subculture B) national culture C) popular culture D) monoculture Answer: B AACSB: Diverse and multicultural work environments Skill: Application Difficulty: Hard LO: 2.1: Explain culture and the need for cultural knowledge. 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. 20) Which of the following terms describes Betty’s effort to learn more about the Chinese culture? A) cultural literacy B) cultural imperialism C) cultural divergence D) cultural heterogeneity Answer: A AACSB: Diverse and multicultural work environments Skill: Application Difficulty: Hard LO: 2.1: Explain culture and the need for cultural knowledge. 6 Copyright © 2019 Pearson Education, Inc. 21) The first step in analyzing a nation’s potential for international business activity is to examine its business climate. Answer: TRUE AACSB: Application of knowledge Skill: Concept Difficulty: Moderate LO: 2.1: Explain culture and the need for cultural knowledge. 22) Ethnocentric firms typically use the same business practices in all cultures and markets. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 23) Subcultures mimic the values, preferences, and beliefs of dominant cultures. Answer: FALSE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 24) Subcultures exist in democratic countries with large populations. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 25) Hispanics comprise a subculture in the United States. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 26) Subcultures contribute to national culture and cannot be safely ignored when making marketing and production decisions. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.1: Explain culture and the need for cultural knowledge. 7 Copyright © 2019 Pearson Education, Inc. 27) A nation’s cultural boundaries do not always correspond with its political boundaries. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.1: Explain culture and the need for cultural knowledge. 28) Subcultures exist only within a nation’s borders. Answer: FALSE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.1: Explain culture and the need for cultural knowledge. 29) Cultures isolated by topographical barriers are characterized by slower cultural change. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.1: Explain culture and the need for cultural knowledge. 30) Material culture often displays uneven development across a nation’s industries. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.1: Explain culture and the need for cultural knowledge. 31) ________ facilitate(s) the process of cultural imperialism. A) Strict product liability laws B) Relaxed trade and investment barriers C) Technological stagnation D) Social media censorship Answer: B AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.2: Summarize the cultural importance of values and behavior. 8 Copyright © 2019 Pearson Education, Inc. 32) ________ refers to the replacement of one culture’s traditions, folk heroes, and artifacts with equivalents from another. A) Cultural imperialism B) Social stratification C) Cultural encoding D) Social conditioning Answer: A AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.2: Summarize the cultural importance of values and behavior. 33) U.S. companies monopolize much of the international entertainment media, which largely portrays U.S. products and lifestyles as glamorous and appealing. This situation would most likely be used as an example of ________. A) the stronger work ethic typical of developed countries B) the spread of low-context cultures C) cultural fragmentation D) cultural imperialism Answer: D AACSB: Diverse and multicultural work environments Skill: Application Difficulty: Hard LO: 2.2: Summarize the cultural importance of values and behavior. 34) ________ is a system in which a supervisor walks an employee through every step of an assignment or task, monitoring the results at each stage. A) Situational attribution B) Situational management C) Social mobility D) Social stratification Answer: B AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.2: Summarize the cultural importance of values and behavior. 35) Low levels of class consciousness encourage social mobility and lessen conflict. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.2: Summarize the cultural importance of values and behavior. 9 Copyright © 2019 Pearson Education, Inc. 36) The cultural component that deals with elements of imagery and symbolism is known as material culture. Answer: FALSE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.2: Summarize the cultural importance of values and behavior. 37) A culture’s values tend to become inflexible over time. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.2: Summarize the cultural importance of values and behavior. 38) Folk customs that spread by cultural diffusion to other regions develop into popular customs. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.2: Summarize the cultural importance of values and behavior. 39) A nuclear family comprises of one’s immediate family, along with grandparents, uncles, aunts, and cousins. Answer: FALSE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.2: Summarize the cultural importance of values and behavior. 40) Social status is determined by family heritage, income, and occupation. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.2: Summarize the cultural importance of values and behavior. 10 Copyright © 2019 Pearson Education, Inc. 41) Distinguish between attitudes and values. How do cultures differ in their attitudes toward cultural change? Answer: Ideas, beliefs, and customs to which people are emotionally attached are called values. Attitudes are positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts. Attitudes reflect underlying values. But unlike values (which generally concern only important matters), people hold attitudes toward both important and unimportant aspects of life. And whereas values remain quite rigid over time, attitudes are more flexible. Cultures can have varying responses to cultural change. Some countries feel threatened by the diffusion of traits from certain cultures, particularly if there appears to be a risk of cultural imperialism. One example involves French resistance to the influx of American cultural icons such as Mickey Mouse. In other cases, countries may welcome cultural change or at least see its benefits. U.S. audiences have embraced the diffusion of British-style competitive TV shows, such as the type of show that spawned American Idol. AACSB: Reflective thinking Skill: Synthesis Difficulty: Hard LO: 2.2: Summarize the cultural importance of values and behavior. 42) Explain the concept of culture. Why is it important to avoid ethnocentricity and gain cultural literacy? Answer: Culture is the set of values, beliefs, rules, and institutions held by a specific group of people. Individuals who are ethnocentric believe their culture is superior to other cultures. It is important to avoid ethnocentricity because it can seriously undermine international business projects. It causes people to view other cultures in terms of their own and, therefore, disregard the beneficial characteristics of other cultures. Cultural literacy, on the other hand, involves acquiring detailed knowledge about a culture to function effectively within it. Cultural literacy improves a person’s ability to manage employees, market products, and conduct negotiations in other countries. The culturally literate manager who compensates for local needs and desires brings his or her company closer to customers and improves the firm’s competitiveness. AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.2: Summarize the cultural importance of values and behavior. 11 Copyright © 2019 Pearson Education, Inc. 43) A folk custom can be defined as ________. A) behavior shared by a heterogeneous group or by several groups of people B) behavior, often dating back several generations, that is practiced by a homogeneous group of people C) positive or negative evaluations, feelings, and tendencies that individuals harbor toward objects or concepts D) positive or negative evaluations, feelings, and tendencies that individuals harbor toward themselves Answer: B AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.3: Describe the roles of social structure and education in culture. 44) Folk customs that spread by cultural diffusion to other regions develop into ________. A) trash culture B) traditions C) popular customs D) superstitions Answer: C AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.3: Describe the roles of social structure and education in culture. 45) The practice by which managers and other employees find jobs within their own companies for relatives is known as ________. A) ethnocentrism B) enculturation C) nepotism D) stratification Answer: C AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.3: Describe the roles of social structure and education in culture. 46) Nepotism often prevails in ________ cultures. A) extended-family B) individualistic C) monotheistic D) nuclear family Answer: A AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.3: Describe the roles of social structure and education in culture. 12 Copyright © 2019 Pearson Education, Inc. 47) ________ refers to socially learned traits associated with, and expected of, men or women. A) Conformity B) Social mobility C) Individualism D) Gender Answer: D AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.3: Describe the roles of social structure and education in culture. 48) Which of the following terms is used to refer to the process of ranking people into social layers or classes? A) social transformation B) social stratification C) social loafing D) social mobility Answer: B AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.3: Describe the roles of social structure and education in culture. 49) ________ tend to occupy the highest social layer in industrialized countries. A) Teachers B) Scientists C) Medical doctors D) Business leaders Answer: D AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.3: Describe the roles of social structure and education in culture. 50) ________ is the ability of individuals to move from one stratum of society to another. A) Social stratification B) Social mobility C) Socialization D) Hierarchical structure Answer: B AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.3: Describe the roles of social structure and education in culture. 13 Copyright © 2019 Pearson Education, Inc. 51) A caste system is a system of social stratification in which ________. A) a person’s social status is decided by his acquired wealth B) a person’s position in society depends upon his educational qualifications and achievements C) people are born into a social ranking, with no opportunity for social mobility D) people join highly exclusive associations that encourage external interaction Answer: C AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.3: Describe the roles of social structure and education in culture. 52) International businesspeople need to understand social stratification systems where they do business because ________. A) such systems reflect a culture’s willingness to accept new products B) such systems indicate who people in a given culture will likely respect more C) the high similarity among countries lets firms effectively use global hiring practices D) what is an ascribed group membership in one country is an acquired one in another Answer: B AACSB: Diverse and multicultural work environments Skill: Application Difficulty: Hard LO: 2.3: Describe the roles of social structure and education in culture. 53) A class system is a system of social stratification in which ________. A) people are divided into various political groups and subgroups B) a person’s social rank depends upon his/her parentage C) people join highly exclusive associations that forbid external interaction D) personal ability and actions determine an individual’s social status and mobility Answer: D AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.3: Describe the roles of social structure and education in culture. 54) Which of the following is the most common form of social stratification in the world today? A) racial segregation B) class system C) gender-based division D) language-based stratification Answer: B AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.3: Describe the roles of social structure and education in culture. 14 Copyright © 2019 Pearson Education, Inc. 55) ________ is crucial in production facilities where nonnative managers supervise local employees. A) Ethnocentrism B) Language proficiency C) Cultural isolation D) Individualism Answer: B AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.3: Describe the roles of social structure and education in culture. 56) Lingua franca means ________. A) link language B) French language C) official language D) Latin language Answer: A AACSB: Written and oral communication Skill: Concept Difficulty: Easy LO: 2.3: Describe the roles of social structure and education in culture. 57) Which of the following terms is used to refer to the departure of highly educated people from one profession, geographic region, or nation to another? A) social mobility B) repatriation C) stratification D) brain drain Answer: D AACSB: Application of knowledge Skill: Concept Difficulty: Easy LO: 2.3: Describe the roles of social structure and education in culture. 58) Over the last ten years, nearly 90% of medical graduates from Konesia have left the country for higher-paying jobs in the United States. What phenomenon has Konesia been witnessing? A) vested outsourcing B) brain drain C) redeployment D) repatriation Answer: B AACSB: Analytical thinking Skill: Application Difficulty: Hard LO: 2.3: Describe the roles of social structure and education in culture. 15 Copyright © 2019 Pearson Education, Inc. 59) Reverse brain drain is the process by which ________. A) manual laborers migrate from low-income countries to high-income countries B) professionals are lured back to their homeland C) students from Europe choose to enroll themselves in American universities D) companies in high-income countries hire people from low-income countries to fill whitecollar positions Answer: B AACSB: Application of knowledge Skill: Concept Difficulty: Moderate LO: 2.3: Describe the roles of social structure and education in culture. 60) Konesia is a country with a number of offshore islands. Its landscape is characterized by deep valleys, rocky plains, and impassable mountains. Which of the following statements about the country is true, keeping its topography in mind? A) Konesia is the ideal place to set up production facilities for multinational companies. B) Konesia experiences a slow rate of cultural change. C) Konesia is a receptive market for foreign automobile companies. D) Konesia is greatly susceptible to cultural imperialism. Answer: B AACSB: Analytical thinking Skill: Application Difficulty: Hard LO: 2.3: Describe the roles of social structure and education in culture. 61) Social mobility tends to be higher in less stratified societies. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.3: Describe the roles of social structure and education in culture. 62) Nations that invest in worker training programs are usually rewarded with an increase in productivity and a rise in income. Answer: TRUE AACSB: Application of knowledge Skill: Concept Difficulty: Moderate LO: 2.3: Describe the roles of social structure and education in culture. 63) Brain drain is the departure of highly educated people from one profession, geographic region, or nation to another. Answer: TRUE AACSB: Analytical thinking; Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.3: Describe the roles of social structure and education in culture. 16 Copyright © 2019 Pearson Education, Inc. 64) Describe brain drain and its impact on an economy. What is reverse brain drain? Answer: Brain drain is the departure of highly educated people from one profession, geographic region, or nation to another. Brain drain can negatively affect an economy if individuals needed for economic development, such as science and technology professionals, move elsewhere. Many countries in Eastern Europe experienced high levels of brain drain early in their transition to market economies. Economists, engineers, scientists, and researchers in all fields fled westward to escape poverty. But as these nations continue their long march away from communism, some are luring professionals back to their homelands–a process known as reverse brain drain. AACSB: Application of knowledge Skill: Concept Difficulty: Moderate LO: 2.3: Describe the roles of social structure and education in culture. 65) What are the two types of family groups? Why does the family play an important role in affecting business activities across the world? Answer: There are two different types of family groups: The nuclear family consists of a person’s immediate relatives, including parents, brothers, and sisters. This concept of family prevails in Australia, Canada, the United States, and much of Europe. The extended family broadens the nuclear family and adds grandparents, aunts and uncles, cousins, and relatives through marriage. It is an important social group in much of Asia, the Middle East, North Africa, and Latin America. Extended families can present some interesting situations for businesspeople unfamiliar with the concept. In some cultures, owners and managers obtain supplies and materials from another company in which someone from the extended family works. Gaining entry into such family arrangements can be difficult because quality and price are not sufficient motives to ignore family ties. In extended-family cultures, managers and other employees often try to find jobs for relatives inside their own companies. This practice (called “nepotism”) can present a challenge to the human resource operations of a Western company, which typically must establish explicit policies on the practice. AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.3: Describe the roles of social structure and education in culture. 17 Copyright © 2019 Pearson Education, Inc. 66) Religion ________. A) is the exclusive means by which a society’s members communicate with each other B) shapes the attitudes its adherents have toward work, consumption, individual responsibility, and planning for the future C) is the overall framework that determines the roles of individuals within a society, the stratification of the society, and the individuals’ mobility within the society D) remains one of the least important elements of culture Answer: B AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Hard LO: 2.4: Outline how the major world religions can influence business. 67) Religion is confined to national political boundaries. Answer: FALSE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.4: Outline how the major world religions can influence business. Scenario: The French Government The French Government has placed many restrictions upon the use of the English language within their borders. They argue that the inflow of English movies, music, and literature is responsible for the dilution of their rich culture. 68) Which of the following statements, if true, strengthens their argument? A) The Education Board of France has made it mandatory for schools to teach students English as a second language. B) The sales of English novels have risen sharply, while those of French novels have declined to a corresponding extent. C) Stores now advertise their presence with two placards; one in English and one in French. D) French fashions are no longer popular in English speaking countries. Answer: B AACSB: Reflective thinking Skill: Critical Thinking Difficulty: Hard LO: 2.5: Explain the importance of personal communication to international business. 18 Copyright © 2019 Pearson Education, Inc. 69) Which of the following statements, if true, weakens their argument? A) Hollywood movies star French actors very often. B) English novels are more expensive than French novels. C) Contemporary French artists have failed to come up with original songs. D) A larger number of children are being given English names than traditional French names. Answer: C AACSB: Reflective thinking Skill: Critical Thinking Difficulty: Hard LO: 2.5: Explain the importance of personal communication to international business. 70) Upon what assumption does their argument rest? Their argument assumes that ________. A) the people of France prefer English music and movies to French music and movies B) the people of France no longer speak French C) the people of other countries aren’t open to French cultural elements D) Hollywood movies don’t have French subtitles Answer: A AACSB: Reflective thinking Skill: Critical Thinking Difficulty: Hard LO: 2.5: Explain the importance of personal communication to international business. 71) When going global with an Internet presence, it is highly beneficial for a business to localize its Web site. Answer: TRUE AACSB: Information technology Skill: Concept Difficulty: Moderate LO: 2.5: Explain the importance of personal communication to international business. 72) Discuss the concept of lingua franca and how it affects communication in international business. Answer: A lingua franca is a third or “link” language understood by two parties who speak different native languages. The original lingua franca arose to support ancient trading activities and contained a mixture of Italian and French, along with Arabic, Greek, and Turkish. Multinational corporations sometimes choose a lingua franca for official internal communications because they operate in many nations, each with its own language. Although only 5 percent of the world’s population speaks English as a first language, it is the most common lingua franca in international business, followed closely by French and Spanish. AACSB: Written and oral communication Skill: Concept Difficulty: Moderate LO: 2.5: Explain the importance of personal communication to international business. 19 Copyright © 2019 Pearson Education, Inc. 73) Which of the following terms refers to the technology used in a culture to manufacture goods and provide services? A) vernacular culture B) popular culture C) trash culture D) material culture Answer: D AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.6: Describe how firms and culture interact in the global workplace. 74) ________ is often used to measure the technological advancement of a nation’s markets or industries. A) Material culture B) Popular culture C) Trash culture D) Vernacular culture Answer: A AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.6: Describe how firms and culture interact in the global workplace. 75) ________ cultures value hard work and promote entrepreneurial risk taking. A) Short-term oriented B) High uncertainty avoidance C) Individualist D) Collectivist Answer: C AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.6: Describe how firms and culture interact in the global workplace. 76) Which of the following is characterized by low dependence on an organization and a desire for personal time, freedom, and challenges? A) collectivism B) democracy C) individualism D) anarchy Answer: C AACSB: Diverse and multicultural work environments Skill: Application Difficulty: Hard LO: 2.6: Describe how firms and culture interact in the global workplace. 20 Copyright © 2019 Pearson Education, Inc. 77) According to Hofstede’s framework, people generally prefer little consultation between superiors and subordinates in cultures where ________ is high. A) power distance B) fatalism C) individualism D) self-actualization Answer: A AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.6: Describe how firms and culture interact in the global workplace. 78) According to Hofstede’s framework, organizations which have cultures that score high on ________ tend to be more hierarchical, with power deriving from prestige, force, and inheritance. A) uncertainty avoidance B) power distance C) short-term orientation D) femininity Answer: B AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.6: Describe how firms and culture interact in the global workplace. 79) According to Hofstede’s framework, a culture with large power distance tends to be characterized by ________. A) inequality between superiors and subordinates B) the absence of any form of hierarchy C) power derived from hard work and entrepreneurial drive D) a preference for individualism over collectivism Answer: A AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.6: Describe how firms and culture interact in the global workplace. 21 Copyright © 2019 Pearson Education, Inc. 80) Sally, a social worker from the United States, has been stationed in Konesia for a year. She notices several things about the Konesian society; the people who report to her, for example, do so with an excessive amount of submissiveness, and her superior seems to expect the same of her. Which of the following statements about Konesia would be consistent with Hofstede’s framework? A) Konesians work best in an informal environment. B) Konesia has a large power distance culture. C) Konesian society is primarily individualistic. D) Konesians derive power from their entrepreneurial drive. Answer: B AACSB: Diverse and multicultural work environments Skill: Application Difficulty: Hard LO: 2.6: Describe how firms and culture interact in the global workplace. 81) According to Hofstede’s framework, managers should be more precise in their directions to subordinates when ________. A) the company has a philosophy of geocentrism B) the society believes age equals wisdom C) uncertainty avoidance is high D) power distance is low Answer: C AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.6: Describe how firms and culture interact in the global workplace. 82) According to Hofstede’s framework, cultures scoring high on the dimension of ________ tend to be characterized by personal assertiveness and the accumulation of wealth, typically translating into an entrepreneurial drive. A) power distance B) collectivism C) uncertainty avoidance D) masculinity Answer: D AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.6: Describe how firms and culture interact in the global workplace. 22 Copyright © 2019 Pearson Education, Inc. 83) The term “________ culture” describes a country in which the norm is a money-and-things orientation and a belief that it’s better to “live to work” than to “work to live.” A) high masculinity B) physiological C) non-fatalistic D) high-femininity Answer: A AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.6: Describe how firms and culture interact in the global workplace. 84) According to Hofstede’s framework, cultures that score high on ________ value respect for tradition, thrift, and perseverance, and have strong work ethics. A) power distance B) masculinity C) uncertainty avoidance D) long-term orientation Answer: D AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.6: Describe how firms and culture interact in the global workplace. 85) According to Hofstede’s framework, a culture that scores low on ________ is characterized by individual stability and reputation, fulfilling social obligations, and reciprocation of greetings and gifts. A) collectivism B) uncertainty avoidance C) long-term orientation D) femininity Answer: C AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.6: Describe how firms and culture interact in the global workplace. 23 Copyright © 2019 Pearson Education, Inc. 86) According to Hofstede’s framework, a culture that scores low on ________ can change more rapidly because tradition and commitment are not impediments to change. A) masculinity B) individualism C) long-term orientation D) risk-taking Answer: C AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.6: Describe how firms and culture interact in the global workplace. 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. 87) When selecting employees to help her establish their chain in China, she decides not to transfer Craig, as he believes that the people of China are less competent and skilled than the people of his country. What trait does Craig display? A) individualism B) imperialism C) ethnocentrism D) collectivism Answer: C AACSB: Diverse and multicultural work environments Skill: Application Difficulty: Hard LO: 2.6: Describe how firms and culture interact in the global workplace. 88) Betty notices that organizations in China tend to be hierarchical with power derived from prestige and force. Which of the following statements is consistent with her observation? A) Chinese society considers caste system and class system a myth. B) Chinese men are subordinate to Chinese women. C) China scores high on the power distance dimension. D) China owes its success to its individualistic society. Answer: C AACSB: Analytical thinking Skill: Application Difficulty: Hard LO: 2.6: Describe how firms and culture interact in the global workplace. 24 Copyright © 2019 Pearson Education, Inc. 89) Once in China, Betty witnesses the ease with which Chinese employees incorporate change and new ideas into their work–unlike the people of Oceania who prefer strong systems of rules and guidelines. Which of the following statements within Hofstede’s framework is consistent with her observation? A) China scores low on the uncertainty avoidance dimension. B) China scores high on the femininity dimension. C) Chinese organizations are the least entrepreneurial. D) Chinese organizations have high levels of employee turnover. Answer: A AACSB: Analytical thinking Skill: Application Difficulty: Hard LO: 2.6: Describe how firms and culture interact in the global workplace. 90) One of Betty’s employees, Dan, oversees the hot dog joint’s decor. He designs all menu cards in shades of red and gold because those are considered lucky colors in China. He also uses his knowledge of Feng Shui when designing the building’s interior. The cultural component Dan is involved in is ________. A) ethics B) stratification C) imperialism D) aesthetics Answer: D AACSB: Diverse and multicultural work environments Skill: Application Difficulty: Hard LO: 2.6: Describe how firms and culture interact in the global workplace. 91) Against Betty’s judgment, her boss decides to market Frankfurter’s beef sausages in the town of Xunagshi, believing that it would rake in a huge profit. Which of the following, if true, would prove that her boss’s decision is a bad one? A) There are very few vegetarians in Xunagshi. B) Due to their exposure to the Western culture, the youth of Xunagshi is more open to fast food than the town elders. C) The traditional dishes of Xunagshi are more expensive than the beef sausages. D) Xunagshi has a large Hindu population, all of whom are forbidden from eating beef. Answer: D AACSB: Reflective thinking Skill: Critical Thinking Difficulty: Hard LO: 2.6: Describe how firms and culture interact in the global workplace. 25 Copyright © 2019 Pearson Education, Inc. 92) Businesspeople measure material culture to determine whether a market can support production activities. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.6: Describe how firms and culture interact in the global workplace. 93) People in collectivistic cultures are more focused on the success of the organization. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Easy LO: 2.6: Describe how firms and culture interact in the global workplace. 94) A culture with large power distance tends to be characterized by considerable inequality between superiors and subordinates. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.6: Describe how firms and culture interact in the global workplace. 95) Cultures that score high on uncertainty avoidance tend to be less open to change and new ideas. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.6: Describe how firms and culture interact in the global workplace. 26 Copyright © 2019 Pearson Education, Inc. 96) Explain the Hofstede framework briefly. Answer: The Hofstede framework compares cultures along five dimensions: (1) individualism vs. collectivism; (2) power distance; (3) uncertainty avoidance; (4) masculinity vs. femininity; and (5) long-term orientation. The individualism vs. collectivism dimension identifies the extent to which a culture emphasizes the individual versus the group. Individualist cultures value hard work and promote entrepreneurial risk taking, thereby fostering invention and innovation. Although people are given freedom to focus on personal goals, they are held responsible for their actions. People in collectivist cultures, however, tend to work toward collective rather than personal goals and are responsible to the group for their actions. In turn, the group shares responsibility for the wellbeing of each of its members. Power distance conveys the degree to which a culture accepts social inequality among its people. A culture with large power distance tends to be characterized by much inequality between superiors and subordinates. On the other hand, cultures with small power distance display a greater degree of equality, with prestige and rewards more equally shared between superiors and subordinates. Uncertainty avoidance identifies the extent to which a culture avoids uncertainty and ambiguity. A culture with large uncertainty avoidance values security and places its faith in strong systems of rules and procedures in society. Cultures scoring low on uncertainty avoidance tend to be more open to change and new ideas. Cultures scoring high on masculinity tend to be characterized more by personal assertiveness and the accumulation of wealth, typically translating into an entrepreneurial drive. Cultures scoring low on this dimension (greater tendency toward femininity) generally have more relaxed lifestyles, wherein people are more concerned about caring for others as opposed to material gain. The dimension of long-term orientation indicates a society’s time perspective and an attitude of overcoming obstacles with time, if not with will and strength. A high-scoring culture values respect for tradition, thrift, perseverance, and a sense of personal shame. A low-scoring culture is characterized by individual stability and reputation, fulfilling social obligations, and reciprocation of greetings and gifts. These cultures can change more rapidly because tradition and commitment are not impediments to change. AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.6: Describe how firms and culture interact in the global workplace. 27 Copyright © 2019 Pearson Education, Inc. 97) Are the Kluckhohn-Strodtbeck and Hofstede frameworks useful for understanding subcultures? Why or why not? Answer: The frameworks appear to be better suited for analyzing national culture than particular subcultures. Both frameworks describe cultures in terms of dimensions that apply to the entire culture. They attempt to identify features that can be used to understand a culture in an overarching way. They do not allow for the subtleties necessary to differentiate various aspects of subcultures. The frameworks could most likely be applied to subcultures, but their strengths seem to lie in providing succinct portraits of national culture that facilitate comparisons between countries. AACSB: Analytical thinking Skill: Application Difficulty: Hard LO: 2.6: Describe how firms and culture interact in the global workplace. 98) How can a nation’s topography affect the existence of subcultures? Answer: All the physical features that characterize the surface of a geographic region constitute its topography. The topography of an area can serve to promote or weaken subcultures. On the one hand, physically separating topography can reinforce subcultures and help keep them isolated by inhibiting communication. For example, mountain ranges and the formidable Gobi Desert consume two-thirds of China’s land surface. Groups living in the valleys of these mountain ranges hold on to their own ways of life and speak their own languages. At the same time, topography that promotes communication can enhance cultural diffusion. Some surface features such as navigable rivers and flat plains facilitate travel and contact with others and can potentially lead to more uniformity among cultural groups. AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.6: Describe how firms and culture interact in the global workplace. 99) Describe the relationship between culture and the physical environment. Answer: Although physical environment affects a people’s culture, it does not directly determine it. Two aspects of the physical environment that heavily influence a people’s culture are topography and climate. All the physical features that characterize the surface of a geographic region constitute its topography. Some surface features such as navigable rivers and flat plains facilitate travel and contact with others. By contrast, treacherous mountain ranges and large bodies of water can discourage contact. Cultures isolated by topographical features can find themselves less exposed to the cultural traits of other peoples, which can mean slower cultural change. Topography can impact consumers’ product needs and can also have a profound impact on personal communication in a culture. Climate affects where people settle and helps direct systems of distribution. It plays a large role in lifestyle and work habits, to which companies must adapt, and it also impacts customs such as the type of clothing people wear. AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.6: Describe how firms and culture interact in the global workplace. 28 Copyright © 2019 Pearson Education, Inc. 100) Differentiate between folk and popular customs. Why are popular customs seen as a threat by some cultures? Support your answer with an example. Answer: A folk custom is behavior, often dating back several generations, that is practiced by a homogeneous group of people. The wearing of turbans by Muslims in southern Asia and the art of belly dancing in Turkey are both folk customs. A popular custom is behavior shared by a heterogeneous group or by several groups. Popular customs can exist in just one culture or in two or more cultures at once. Wearing blue jeans and playing golf are both popular customs across the globe. Folk customs that spread by cultural diffusion to other regions develop into popular customs. Despite their appeal, popular customs can be seen as a threat by some members of a culture. Authorities in a devoutly religious district of Indonesia’s Aceh province banned Muslim women from wearing tight clothing, short skirts, and blue jeans. Islamic police set up raids to distribute long skirts to women found violating the ban and to confiscate their offending garments. Violators were released from custody after they provided their identities to police and received advice from Islamic preachers. AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 2.6: Describe how firms and culture interact in the global workplace. 29 Copyright © 2019 Pearson Education, Inc.