Chapter 1: Assessing the Environment—Political,

Economic, Legal, Technological

1. The "Triad" of free-trade blocs includes all of the following

except:

Russian Federation
Your
Answer:

2. The World Economic Forum held in Davos Switzerland in 2009

had as its theme:

"Shaping the Post-Crisis World"

Your
Answer:

3. Which country experienced the greatest growth rate in gross

domestic product between 2000 and 2006?

China
Your
Answer:

4. Which country listed below is *not* a member of CAFTA? 

Venezuela
Your
Answer:

5. Which development has had the greatest impact on

international managers?

Information technology
Your
Answer:

6. When examining trends in the globalization of human capital,

Forrester Research, and several other researchers have
 predicted which effect on the U.S. labor market?

The labor market in the U.S. will decrease

Your because more jobs will be shifted offshore
Answer:

7. The major concern for multi-national corporations is which of

the following?

Appropriability of technology
Your
Answer:

8. If a government were to seize the assets of a MNC and not

provide adequate compensation to the owners, the government
would be following which practice?

Expropriation
Your
Answer:

9. If an event occurred that only impacted one industry or only a

few companies in a country, the event would most likely be
classified as:

A micropolitical risk event

Your
Answer:

10 Which event would not be considered a political risk event?

.
Consumer preference toward a national
Your company
Answer:

11 An event which affects all foreign firms doing business in a

. country is called _______________________.

A macropolitical risk event

Your
 Answer:

12 For an MNC, what is the most important resource for current

. information on the political environment in the host country?

Host-country national managers

Your
Answer:

13 What method would most likely be successful in keeping a

. subsidiary and the host nation dependent on the parent
corporation?

Input control
Your
Answer:

14 Which method of analyzing economic risk relies on a few easily

. measurable and timely criteria believed to reflect or indicate
changes in the creditworthiness of the country?

The checklist approach

Your
Answer:

15 Which method of risk reduction would most likely be classified

. as a hedging technique?

Local debt financing

Your
Answer:

16 Which type of law would most likely be defined as a

. comprehensive set of laws organized into a code?

Civil law
Your
Answer:
17 China has become the world's largest exporter, surpassing
. Germany in 2009.

True
Your
Answer:

18 Emerging-market companies have yet to buy stakes in any of

. the large scale corporations of the developed countries.

False
Your
Answer:

19 Japan, with a growth rate in GDP of over 9% in 2003, has

. experienced the fastest growth rate in the world. 

False
Your
Answer:

20 The globalization of human capital is predicted to decrease the

. number of service-sector jobs available in the U.S. 

True
Your
Answer:

21 Nationalization occurs when a government takes possession of

. the foreign owned assets of a MNC.

False
Your
Answer:

22 Contract law plays a major role in international business

. transactions because of the complexities arising from
differences in legal systems.
 True
Your
Answer:

23 An advantage of quantitative systems of political risk

. assessment is the use and primary reliance on past events.

False
Your
Answer:

24 Market control, as a method of keeping the subsidiary and the

. host nation dependent on the parent corporation, involves
keeping certain key subsidiary management positions in the
hands of expatriate or home-office managers. 

False
Your
Answer:

25 Political risk often has a direct effect on the ownership and

. control of the foreign firm.

True
Your
Answer:

26 The qualitative approach to evaluating economic risk assesses

. the competence of that country's leaders and analyzing the
types of policies they are likely to implement. 

True
Your
Answer:

27 Under civil law, past court decisions act as precedents to the

. interpretation of the law and common customs. 

False
Your
 Answer:

28 Use of patents, trademarks, trade names, copyrights, and trade

. secrets are the most common methods of protecting
proprietary technology.

True
Your
Answer:

29 Business-to-business transactions provide the greatest

. opportunities for the use of e-business. 

True
Your
Answer:

30 Equity sharing is a method of managing political risk that

. includes the initiation of joint ventures with nationals to reduce
political risk.

True
Your
Answer:

31 A country's tax system influences the attractiveness of

. investing in that country and affects the relative level of
profitability for an MNC. 

True
Your
Answer:

32 Clearly, the global business environment has been changing

. rapidly. In particular, several regional trading blocks have been
developed. List and describe the "TRIAD" of regional trading
blocks. Also explain why countries are so interested in joining
various trading blocks. 
 Your Answer:
AAA

Triad of regional trading blocks include: (1) North American

Free Trade Agreement (NAFTA); (2) European Union; and (3)
Association of Southeast Asian Nations (ASEAN).

Much of today's world trade takes place within the three

regional free-trade blocks. Countries are interested in joining
  the various trading blocks in order to increase their access to
these markets. Countries within the trading blocks also benefit
from the reduction or elimination of internal tariffs and customs
as well as the other financial and commercial barriers. Further,
as evidenced by Mexico's involvement in NAFTA, countries
involved in free-trade agreements can benefit from increases in
GDP, and exports.

33 Explain how the globalization of human capital is predicted to

. impact the world's labor market. Who do you predict will be the
big winners and the big losers? 

Your Answer:
AAA

Globalization of Human Capital

 While firms have been outsourcing manufacturing jobs for

decades, they are now also outsourcing white collar jobs
too.
 Jobs will be moving from higher labor cost countries to
lower cost ones.
 
 Technology jobs will most likely lead the next wave of
outsourcing
 Big losers (in relation to number of jobs) will be U.S. and
other developed countries
 Big winners will include countries with low cost educated
employees (e.g., India, China, Taiwan).

34 Political risk is one of the major areas of concern with MNCs.

. Explain the various types of political risk and describe the
various ways that political risk can be assessed. Finally, explain
the various ways of managing political risk. 
 Your Answer:
AAA

Political Risks are any governmental action or politically

motivated event that could adversely affect the long-run
profitability or value of a firm.

 Macropolitical risk event - an event that affects all foreign

firms doing business in a country or region.
 Micropolitical risk event - an event that affects one
industry or company or only a few companies.

Examples of political risk events:

 Expropriation of corporate assets without prompt and

adequate compensation
 Forced sale of equity to host-country nationals, usually at
or below depreciated book value
 Discriminatory treatment against foreign firms in the
application of regulations or laws
 Barriers to repatriation of funds (profits or equity)
 Loss of technology or other intellectual property (such as
patents, trademarks, or trade names)
   Interference in managerial decision making
 Dishonesty by government officials, including canceling or
altering contractual agreements, extortion demands, and
so forth.

Ways of Managing Political Risk:

 Adaption
o Equity sharing
o Participative management
o Localization of the operation
o Development assistance
 Dependency
o Input control
o Market control
o Position control
o Staged contribution strategies
 Hedging
o Political risk insurance
o Local debt financing

35 Why are so many people from Mexico crossing the border from
. Mexico to USA to find jobs despite the fact that there have
been noticeable growths in Mexico's economy including an
increase in GDP from $403 billion in 1993 to $893.4 billion in
2007? 

Your Answer:
AAA

-MNCs displaced farming in Mexico.

-Higher wages in the U.S. means that immigrants to the U.S.
can send back money to their families. 
-Competition from China: 
 
Recently some manufacturing facilities and some service
facilities migrated from Mexico to China in a race for the lowest
cost operations. This caused Mexicans to migrate to USA in
search for jobs.

Chapter 2: Managing Interdependence: Social

Responsibility and Ethics

1. Managers today are sensitive to issues of social responsibility

because of pressure from all of the following stakeholders
except...

Other manufacturers
Your
Answer:

2. If a company applies the moral beliefs of its home country to a

host counrtry, they would be following which ethical guideline?

Ethnocentrism
Your
Answer:
3. If a company adopts the local moral code, irrespective of where
they are operating, they are said to be following which moral
code?

Ethical relativism
Your
Answer:

4. According to Bowie, which code of morality and ethics is

preferable?

Moral universalism
Your
Answer:

5. Which behavior would NOT be required according to the

proposed Social Accountability 8000 (SA8000)?

Regularly requiring more than 48-hour work

Your weeks
Answer:

6. Which organization was not involved in the creation of the

International Codes of Conduct for MNEs?

Foreign Corrupt Practices Commission

Your
Answer:

7. According to the International Codes of Conduct for MNEs,

which behavior would not be covered under the economic and
developmental policies?

MNEs should give preference to local sources for

Your components and raw materials even if prices
Answer: and quality are not competitive

8. According to the moral philosophy of cross-cultural societal

ethics, developed by Robertson and Crittenden, which variable
would be considered a societal moderator?
 Historic traditions
Your
Answer:

9. Which factor poses the greatest problem for MNCs in

attempting to define a corporatewide ethical posture

Variability of ethical standards around the world

Your
Answer:

10 According to the research conducted by Transparency

. International, which of the following country's political and
business practices were most affected by corruption?

Bolivia
Your
Answer:

11 Which option would be least consistent with an ethical

. decision?

Act consistently with what has been previously

Your practiced
Answer:

12 Which factor is generally not a criticism of an MNC's

. involvement in a LDC (less developed country)?

Majority of the stock is locally owned

Your
Answer:

13 Which of the following would be considered a capital market

. benefit to a host country from involvement with a MNC? 

Foreign-exchange earnings
Your
Answer:
14 Which of the following would be considered a technological and
. production cost (problem) to a host country from involvement
with a MNC?

Plants are often for assembly only and can be

Your dismantled
Answer:

15 If a host country institutes a partial or complete closing of their

. borders to withstand competitive foreign products, they are
most likely using which form of control?

Protectionism
Your
Answer:

16 Ethics is more likely to deal with decisions and interactions on

. an individual level while social responsibility is more likely to
deal with decisions that are broader in scope.

True
Your
Answer:

17 In many cases, MNCs now have a greater capacity than local

. governments to induce change.

True
Your
Answer:

18 An ethnocentric approach to ethics across cultures adopts the

. local moral code of whatever country in which the company is
operating.

False
Your
Answer:
19 With a moral universalism approach to ethics, a company
. applies the morality used in its home country regardless of the
host countries system of ethics.

False
Your
Answer:

20 A common belief is that the best way to reduce human rights

. violations is for large multinational corporations and
governments around the world to take a unified stance.

True
Your
Answer:

21 According to the International Chamber of Commerce

. Guidelines for International Investments, multinational
enterprises should provide standards of employment equal to
or better than those in the home country.

False
Your
Answer:

22 The term international business ethics refers to the business

. conduct or morals of multinational corporations in their
relationships with individuals and entities.

True
Your
Answer:

23 According to the 2007 Corruption Perceptions Index, Canada

. was rated as the most corrupt.

False
Your
Answer:
24 According to the Global Corruption Perception 2007 country
. tables, Greece was rated 4.6 in terms of perception of the
degree of corruption as seen by business people and country
analysts.

True
Your
Answer:

25 If bribes are a common practice in the country where you are

. doing business, it is considered ethical to also pay bribes,
irrespective of the laws in your home country.

False
Your
Answer:

26 When deciding if a behavior or decision is ethical, you should

. first consult the laws of both the home and host countries.

True
Your
Answer:

27 Foreign direct investment from the United States to other

. countries is greater than the foreign direct investment from
other countries into the United States.

False
Your
Answer:

28 A common benefit from multinational corporations involvement

. in a host country is access to new technology and research and
development.

True
Your
Answer:
29 A common problem associated with multinational corporations'
. involvement in a host country is decreased interest rates as the
supply of local capital decreases.

False
Your
Answer:

30 Under protectionism, the government uses its policy-setting

. role to favor national interests, rather than relying on market
forces.

False
Your
Answer:

31 Although increased globalization has been credited with

. increasing global standards of living, there have also been
some concerns regarding multinational companies exploiting
foreign resources. Discuss the various perspectives toward
corporate social responsibility. Also discuss your impression of
the proper perspective. 

Your Answer:
AAA

  Multinational corporations (MNCs) have been and—to a lesser

extent—continue to be at the center of debate regarding social
responsibility, particularly the benefits versus harm wrought by
their operations around the world, especially in less developed
countries.

Ways of dealing with specific situations:

 Moral universalism - using a moral standard that is

accepted by all cultures
 Ethnocentric approach - a company applies the morality
used in its home country regardless of the host country's
system of ethics
 Ethical relativism - a company simply adopts the local
moral code whatever country in which it is operating

Managers are faced with not only considering stakeholders in

the host country but also with weighing their concerns against
those of the stakeholders in the domestic country. A
corporation's stance toward social responsibility should perhaps
 range from assuming some responsibility for economic
development in the host country to taking an active role in
identifying and solving world problems.

32 Explain the process you would follow to if you were faced with
. an ethical dilemma.

Your Answer:
AAA

The first place to look would be to consult the laws of both the
home and the host country.
Second, you would consult the International Codes of Conduct
for multinational enterprises.
Third, you would want to consult the company's code of ethics.
 
Fourth, you have the right and obligation to consult your
superiors.
Finally, you must fall back upon your own moral code of ethics.
In the end you have to follow your own conscience and decide
what is best for you.

33 Because multinational firms represent global interdependency,

. their managers must recognize that what they do will have
long-term implications for other nations. Describe the process
of effectively managing subsidiary - host-country
interdependence. Also discuss the various benefits and costs to
host countries resulting from multinational corporations.

Your Answer:
AAA

  Whatever the situation, the powerful long-term effects of MNC

and MNE action should be planned for and controlled, not left to
chance. Managers must go beyond general issues of social
responsibility and deal with the specific concerns of the MNC
subsidiary-host country relationship.

Benefits

 Capital market effects

o Broader access to outside capital; Foreign-
exchange earnings; Import substitution effects
allow governments to save foreign exchange for
priority projects ; Economic growth
 Technology and production effects
 o Access to new technology and R&D developments;
Employee training in new technology;
Infrastructure development and support; Export
diversification; Introduction of new management
techniques
 Employment effects
o Direct creation of new jobs; Introduction of more
humane employment standards; Opportunities for
indigenous management development; Income
multiplier effects on local community business

Costs

 Capital market effects

o Increased competition for local scarce capital;
Increased interest rates as supply of local capital
decreases; Capital service effects of balance of
payments
 Technology and production effects
o Technology is not always appropriate; Plants are
often for assembly only and can be dismantled;
Government infrastructure investment is higher
than expected benefits; Increased pollution
 Employment effects
o Limited skill development and creation; Competition
for scarce skills, etc.
o Competition for scarce skills
o Low percentage of managerial jobs for local people
o Employment instability because of ability to move
production operations freely to other countries

Chapter 3: Understanding the Role of Culture

1. A working knowledge of the cultural variables affecting

management decisions is referred to as:

Cultural savvy
Your
Answer:

2. Which variable would be considered a sociocultural variable

affecting management functions?
 Education
Your
Answer:

3. Which group of variables is most likely to directly provide the

context for the development and perpetuation of cultural
variables?

National variables
Your
Answer:

4. Research has indicated that managers of U.S. multinational

corporations have a very weak understanding of which
multicultural skill?

Intercultural communication
Your
Answer:

5. If you are an American and expect all people working in the

U.S., irrespective of their citizenship, to behave just like
everyone else, you would be exhibiting which attitude? 

Parochialism
Your
Answer:

6. Which variable, identified by Harris and Moran to categorize

subsystems in a society, is adopted by a society to guide family
relationships?

Kinship
Your
Answer:

7. Convergence describes the shifting of what organizational

cultural elements to become more similar to one another
around the world?
 Managerial styles
Your
Answer:

8. According to the research conducted by GLOBE, which country

would be rated highest in assertiveness?

Germany
Your
Answer:

9. According to the research conducted by GLOBE, which country

would be considered the most humane oriented?

Philipines
Your
Answer:

10 Which cultural dimension attempts to measure the extent to

. which a society encourages and rewards people for being fair,
altruistic, generous, caring, and kind?

Humane orientation
Your
Answer:

11 Which one of Hofstede's value dimensions refers to the extent

. to which people in a society feel threatened by ambiguous
situations? 

Uncertainty avoidance
Your
Answer:

12 Which type of culture would most likely view cooperation as a

. sign of weakness?

High in masculinity
Your
Answer:
13 Which of the following countries has the highest rating on
. individualism?

United States
Your
Answer:

14 The phrase "time is money" is most consistent with which

. culture?

United States
Your
Answer:

15 According to the comparative management charts in the

. textbook, which country's cultural profile would be
characterized by a relatively high score on individualism and
uncertainty avoidance, high masculinity and a relatively small
need for power distance?

Germany
Your
Answer:

16 Cultural empathy refers to the awareness and honest caring an

. individual has for someone's culture.

True
Your
Answer:

17 The culture of a society comprises the shared values,

. understanding, assumptions, and goals that are learned from
earlier generations, imposed by present members of a society,
and passed on to succeeding generations. 

True
Your
Answer:
18 Attitudes provide the context for the development and
. perpetuation of cultural variables.

False
Your
Answer:

19 Ethnocentrism describes the attitude of those who operate from

. the assumption that their ways of doing things are best - no
matter where or under what conditions they are applied.

True
Your
Answer:

20 Latin America is, in general, a homogenous area with a low-

. context culture.

False
Your
Answer:

21 According to Islamic law, since the collection of interest is

. banned, the U.S. banking system is technically illegal.

True
Your
Answer:

22 Assertiveness is a cultural dimension that measures the

. importance of performance improvement and excellence in
society and refers to whether or not people are encouraged to
strive for continued improvement. 

False
Your
Answer:

23 According to the GLOBE research, the United States is rated as

. being more performance oriented than Hong Kong.
 False
Your
Answer:

24 According to Hofstede, power distance is the level of

. acceptance by a society of the unequal distribution of power in
institutions. 

True
Your
Answer:

25 According to Hofstede, a culture that has tight social

. frameworks, emotional dependence on belonging to the
organization, and a strong belief in group decisions would be
rated high in collectivism.

True
Your
Answer:

26 In the masculinity scale of cultural values, Japan rates higher

. than the United States.

True
Your
Answer:

27 With Trompenaars's value dimensions, countries were generally

. in similar positions on all of the dimensions. 

False
Your
Answer:

28 Based on Arabs perceptions toward time, imposing a deadline

. would likely be considered an insult.

True
Your
 Answer:

29 Most European countries have a more liberal view toward

. privacy of information that the U.S. 

False
Your
Answer:

30 A cultural profile attempts to create a composite picture of

. working environments, people's attitudes, and norms of
behavior.

True
Your
Answer:

31 If you were the Director of International Marketing for a U.S.

. based large fashion design company, how would you market
your products to a country like Saudi Arabia, where women
cover their hair and wear abayas (long robes), and men wear
thobes (long robes)?

Your Answer:
AAA

Rich people in Saudi Arabia seem to keep Western Culture alive

within their home environment and when they travel abroad.
Women purchase items from designers' collections, which they
wear abroad and in Saudi Arabia only in front of their
husbands. These factors indicate that there is a market for
fashionable products in Saudi Arabia.

By creating "women-only" floors, in its department stores, a

 
company can market certain types of its products to fashion
loving Saudi ladies.

Additionally, by keeping records of different age groups of the

customers who purchase different types of merchandise, the
company can develop a trend analysis to stock certain types of
products. This will help marketing the proper merchandise in
effective and efficient manner.
32 As a Manager of a Multinational Corporation (MNC), how would
. you improve the relationship between two companies from very
different cultures, such as America's AT&T and Italy's Olivetti?;
Use the techniques described in Chapter 3 of your textbook.

Your Answer:
AAA

 Cultural Savvy: by gaining critical skills such as

knowledge of cultural variables affecting marketing and
management decisions, Manager of Multinational (MNC)s
can improve their relationship with partners.
 Cultural Sensitivity: Openly, honestly, and sincerely
  caring about other cultures and their values will enable
MNCs to manage effectively.
 Cross Cultural Communications: By training those
executives who deal with the international partners MNC
can improve their relationships with their partners.

33 The chapter focused largely on culture and how cultures differ

. around the world. Define culture and describe the process
whereby cultures are developed and change over time. 

Your Answer:
AAA

The culture of a society comprises the shared values,

understanding, assumptions, and goals that are learned from
earlier generations, imposed by present members of a society,
 
and passed on to succeeding generations. Over time, cultures
evolve as societies adapt to transitions in their external and
internal environments and relationships.

34 List and describe the eight universal cultural variables found in

. most societies. Be sure to also discuss their effects on work
behavior. 

Your Answer:
AAA

  Kinship - A kinship system is the system adopted by a given

society to guide family relationships. In a country where
 familial ties in business are strong this might have an effect on
the ability to do business with outside firms, hiring, firing etc.

Education - The formal or informal education of workers in a

foreign firm, received from whatever source, greatly affects the
expectations placed on those workers in the workplace.

Economy - Whatever the economic system, the means of

production and distribution in a society (and the resulting
effects on individuals and groups) has a powerful influence on
such organizational processes as sourcing, distribution,
incentives, and repatriation of capital.

Politics - The system of government in a society, whether

democratic, communist, or dictatorial, imposes varying
constraints on an organization and its freedom to do business.

Religion - The spiritual beliefs of a society are often so powerful

that they transcend other cultural aspects. Religion commonly
underlies both moral and economic norms.

Associations - Many and various types of associations arise out

of the formal and informal groups that make up a society.

Health - The system of health care in a country affects

employee productivity, expectations, and attitudes toward
physical fitness and its role in the workplace.

Recreation - Closely associated with other cultural factors,

recreation includes the way in which people use their leisure
time, as well as their attitudes toward leisure and their choice
of with whom to socialize.

35 Considerable work has been conducted on defining cultural

. dimensions. Two of the seminal projects were discussed in the
textbook. Describe the cultural dimensions identified as a result
of the research conducted by GLOBE and Hofstede. Also,
explain how these dimensions can be used to help build a
cultural profile.

Your Answer:
AAA

  Globe's cultural dimensions:

 Assertiveness - This dimension refers to how much

people in a society are expected to be tough,
confrontational, and competitive versus modest and
 tender.
 Future Orientation - This dimension refers to the level of
importance a society attaches to future-oriented
behaviors such as planning and investing in the future.
 Performance Orientation - This dimension measures the
importance of performance improvement and excellence
in society and refers to whether or not people are
encouraged to strive for continued improvement.
 Humane Orientation - This dimension measures the
extent to which a society encourages and rewards people
for being fair, altruistic, generous, caring, and kind.

Hofstede's Cultural Dimensions:

 Power Distance - the level of acceptance by a society of

the unequal distribution of power in institutions
 Uncertainty Avoidance - the extent to which people in a
society feel threatened by ambiguous situations
 Individualism - the tendency of people to look after
themselves and their immediate families only and to
neglect the needs of society.
 Masculinity - the degree of traditionally "masculine"
values that prevail in a society, such as lack of concern
for others and materialism.

Chapter 4: Communicating Across Cultures

1. Noise is most likely to impact which element of the

communication process?

All of the above are affected by noise

Your
Answer:

2. Based on Child's research on trust, which method would

be least likely to cultivate trust?

Create and implement formal contracts for all

Your interactions
Answer:

3. Among the following countries which would have the greatest

 predisposition to trust?

Sweden
Your
Answer:

4. Based on the research conducted by GLOBE, which cultural

dimension would be most consistent with someone explicitly
desiring objective information presented in a direct and explicit
way? 

High performance orientation

Your
Answer:

5. Which cultural variable is most likely to involve stereotyping?

Attitudes
Your
Answer:

6. Religious sect and union affiliation are classified as which type

of cultural variable? 

Social organization
Your
Answer:

7. Which type of cultural variable impacts perceptions of who

should make the decisions in an organization and who has
responsibility? 

Roles
Your
Answer:

8. Which element of nonverbal communication would refer to

communication through body movements?
 Kinesic behavior
Your
Answer:

9. Monochronic people found in ____ cultures, generally

concentrate on one thing at a time, adhere to time
commitments, and are accustomed to short-term relationships.

High individualistic
Your
Answer:

10 An American manager might become uncomfortable in a

. meeting with a Chinese manager because the Chinese manager
is taking too long to respond to a question. This might be
considered a difference in....

Paralanguage
Your
Answer:

11 Which culture would be most likely to experience time in a

. linear way?

Monochromic culture
Your
Answer:

12 Which action would be most consistent with the Japanese

. Ningensei style of communication?

Delayed feedback
Your
Answer:

13 When managing cross-cultural communication, a manager is

. most likely focusing on which communication element if they
consciously limit their idioms and regional sayings?
 Encoding
Your
Answer:

14 Based on research conducted on intercultural communication

. effectiveness, which would be least likely to lead to effective
communication?

All of these factors are important for

Your intercultural communication effectiveness
Answer:

15 Which culture considers it impolite or rude to show one's feet

. and using the left hand to eat or pass something? 

Middle East
Your
Answer:

16 Communication describes the process of sharing meaning by

. transmitting messages through media such as words, behavior,
or material artifacts.

True
Your
Answer:

17 Noise is anything that serves to undermine the communication

. of an intended meaning.

True
Your
Answer:

18 The communication process typically ends when the receiver

. decodes the message from the sender.

False
Your
Answer:
19 Nordic countries generally have the lowest predisposition to
. trust.

False
Your
Answer:

20 People ranking high on the humane dimension are more likely

. to avoid conflict and tend to communicate with the goal of
being supportive of people.

True
Your
Answer:

21 Kinesic behavior is an important element of verbal

. communication.

False
Your
Answer:

22 Proxemics deals with the influence of space on

. communications.

True
Your
Answer:

23 Someone in a polychronic time system would be more likely to

. focus on several things at once, be highly distractible, and
change plans often.

True
Your
Answer:

24 Individuals in a high-context culture would be more likely to

. explicitly express their thoughts and feelings. 

False
Your
Answer:

25 In a high-context culture, people make assumptions about what

. the message means through their knowledge of the person or
the surroundings. 

True
Your
Answer:

26 Fewer words are used in a Japanese Ningensei style of

. communication than in the U.S. style of communication.

True
Your
Answer:

27 The U.S. adversarial style of communication is exemplified by

. making decisions by majority rule and public compromises.

True
Your
Answer:

28 The impersonal nature of the Web reduces the need for the
. communication to be multilocal.

False
Your
Answer:

29 Using idioms and regional sayings from the home country is

. frequently a good way to enhance international communication.

False
Your
 Answer:

30 The term "object language" refers to how we communicate

. through material artifacts. 

True
Your
Answer:

31 Explain the communication process and discuss how the

. process can be affected by international cultural variables. 

Your Answer:
AAA

The term communication describes the process of sharing

meaning by transmitting messages through media such as
words, behavior, or material artifacts. Managers communicate
to coordinate activities, to disseminate information, to motivate
people, and to negotiate future plans. It is of vital importance,
then, for a receiver to interpret the meaning of a particular
communication in the way the sender intended.

Unfortunately, the communication process, involves stages

during which meaning can be distorted. Anything that serves to
undermine the communication of the intended meaning is
  typically referred to as noise.

The primary cause of noise stems from the fact that the sender
and the receiver each exist in a unique, private world of life-
space. The context of that world is based to a certain degree on
culture. The more dissimilar the cultures of those involved the
more the likelihood of misinterpretation. Culture not only
dictates who talks with whom, about whom, and how the
communication proceeds, it also helps to determine how people
encode messages, the meanings they have for messages and
the conditions and circumstances under which various
messages may or may not be sent.

32 Research has identified several cultural variables that can affect

. the communication process by influencing a person's
perceptions. Explain how attitudes, social organization, thought
patterns, roles, language, nonverbal communication, and time
 can influence someone's perceptions. 

Your Answer:
AAA

Attitudes - We all know that our attitudes underlie the way we

behave and communicate and the way we interpret messages
from others. Ethnocentric attitudes are a particular source of
noise in cross-cultural communication.

Social Organization - Our perceptions can be influenced by

differences in values, approach, or priorities relative to the kind
of social organizations to which we belong. These organizations
may be based on one's nation, tribe, or religious sect, or they
may consist of the members of a certain profession.

Thought Patterns - The logical progression of reasoning varies

widely around the world and greatly affects the communication
process. Managers cannot assume that others use the same
reasoning processes.

Roles - Societies differ considerably in their perceptions of a

manager's role. Much of the difference is attributable to their
 
perceptions of who should make the decisions and who has
responsibility for what.

Language - Spoken or written language, of course, is a

frequent cause of miscommunication, stemming from a
person's inability to speak the local language, a poor or too
literal translation, a speaker's failure to explain idioms, or a
person missing the meaning conveyed through body language
or certain symbols. Even among countries that share the same
language, problems can arise from the subtleties and nuances
inherent in the use of the language.

Nonverbal Communication - Behavior that communicates

without words (although it often is accompanied by words) is
called nonverbal communication. People will usually believe
what they see as opposed to what they hear, and so body
movements, gestures, personal space and the tone and
inflection of voice can be important.

33 Effective cross-cultural communication is essential for

. conducting business internationally. Define and explain the
steps required to effectively manage cross-cultural
communication.

Your Answer:
 AAA

Steps toward effective intercultural communication include the

development of cultural sensitivity, careful encoding, selective
transmission, careful decoding, and appropriate follow-up
actions.

Developing Cultural Sensitivity - When acting as a sender, a

manager must make it a point to know the receiver and to
encode the message in a form that will most likely be
understood as intended. On the manager's part, this requires
an awareness of his or her own cultural baggage and how it
affects the communication process.

Careful Encoding - In translating his or her intended meaning

into symbols for cross-cultural communication, the sender must
use words, pictures, or gestures that are appropriate to the
receiver's frame of reference.

Selective Transmission - The type of medium chosen for the

message depends on the nature of the message, its level of
  importance, the context and expectations of the receiver, the
timing involved, and the need for personal interaction, among
other factors. Typical media include e-mail, letters or memos,
reports, meetings, telephone calls, teleconferences,
videoconferences, or face-to-face conversations.

Careful Decoding of Feedback - Timely and effective feedback

channels can also be set up to assess a firm's general
communication about the progression of its business and its
general management principles. The best means for getting
accurate feedback is through face-to-face interaction because
this allows the manager to hear, see, and sense immediately
how a message is being interpreted.

Follow-up Actions -Managers communicate through both action

and inaction. Therefore, to keep open the lines of
communication, feedback, and trust, managers must follow
through with action on what has been discussed and then
agreed upon-typically a contract, which is probably the most
important formal business communication.
 Chapter 5: Cross-Cultural Negotiation and
Decision-Making

1. Although the steps involved in the negotiation process do vary

somewhat according to cultural norms, which step generally
follows persuasion?

Concessions and agreement

Your
Answer:

2. Which step would least likely be part of the preparation phase

of a negotiation meeting? 

Engaging in general, polite conversations and

Your informal communication
Answer:

3. According to the author, Brazilians are far more likely to use

the word ______ in negotiations than Americans or Japanese.

No
Your
Answer:

4. Which variable in the negotiation process would involve

determining the importance of procedures and social behaviors
in the negotiation process?

Concern with protocol

Your
Answer:

5. American compassion for efficiency also leads to problems with

which stage of the negotiation process?

Relationship building
Your
Answer:
6. Which phase in the general negotiation process usually involves
social events, tours, and ceremonies?

Relationship building
Your
Answer:

7. Based on research conducted on bargaining behaviors between

different countries, compared to Americans, South Americans
are much more likely to use which behavior?

Use misleading or false information

Your
Answer:

8. When looking at negotiation strategies, which two countries are

most likely to act similarly?

Americans and Russians

Your Answer:
Correct None of these countries act similarly
Answer:

9. What would be considered the primary purpose underlying all

stages of the negotiation process?

Persuasion
Your
Answer:

10 Based on research examining negotiation styles in Japanese,

. North American, and Latin American cultures, which behavior
would be most consistent with a Japanese culture?

Not argumentative, quiet when right

Your
Answer:

11 According to research conducted by Pierre Casse, a successful

. American negotiator would be most likely to exhibit which
 behavior?

Keeps a maximum of options open before

Your negotiation
Answer:

12 According to Husted's study on Mexican negotiators'

. perceptions of the reasons for the failure of their negotiations
with U.S. teams, the Mexicans viewed which factor as the most
important reason for failed negotiations?

U.S. team's cold, blunt communicative style

Your
Answer:

13 In order to successfully negotiate intercultural negotiations, a

. manager has to:

All of these factors are important for successful

Your intercultural negotiations.
Answer:

14 In following the rational decision-making model, which step

. usually comes first?

Determining who should be involved in the

Your Answer: decision-making process
Correct Defining the problem
Answer:

15 Locus of control is least likely to impact which step in the

. decision-making process?

Data gathering
Your
Answer:

16 A futuristic orientation is most likely to impact which aspect of

. the decision-making process?
 Consideration of alternative solutions
Your
Answer:

17 The negotiation process is comprised of five steps beginning

. with preparation and ending with persuasion.

False
Your
Answer:

18 The negotiation process outside the U.S. typically involves

. getting to know one's contacts in the host country and building
mutual trust before embarking on business discussions and
transactions. 

True
Your
Answer:

19 As part of the relationship building phase of the negotiation

. process, general, polite conversations and informal
communication before meetings is generally referred to as non-
task sounding.

True
Your
Answer:

20 When examining the negotiating behavior of various countries,

. the behaviors of Japanese and Brazilian managers are very
similar.

False
Your
Answer:

21 When negotiating, rough tactics would include putting opposing

. negotiators in stressful situations so that they may become
 more pliant.

True
Your
Answer:

22 Research indicates that in order to maximize negotiation results

. in the U.S., it is best to start with extreme positions.

True
Your
Answer:

23 In general, for Arabs, negotiations are businesslike and their

. factual appeals are based on what they believe is objective
information, presented with the assumption that it is
understood by the other side on a logical basis.

False
Your
Answer:

24 In general, Russians are tough negotiators that stall for time

. until they unnerve Western negotiators by continuously
delaying and haggling. 

True
Your
Answer:

25 Based on Husted's research on Mexican negotiator's

. perceptions of the reasons for the failure of their negotiations
with U.S. teams, Americans need to approach negotiations with
Mexicans with greater patience and tolerance and refrain from
attacking the Mexicans' ideas.

True
Your
Answer:
26 Modern technological improvements have, in effect, eliminated
. the need for the face-to-face elements previously required in
most negotiations.

False
Your
Answer:

27 In high-context cultures, the approach to conflict could typically

. be considered expressive-oriented.

True
Your
Answer:

28 Negotiation can be seen as a series of explicit and implicit

. decisions.

True
Your
Answer:

29 In general, countries with an objective approach would be more

. likely to base their decisions on rationality.

True
Your
Answer:

30 If a country were more individualistic oriented, they would be

. more likely to use participative decision making.

False
Your
Answer:

31 If a country were more utilitarian, they would be more likely to

. follow a short-term, cost-benefit approach to decision making.
 True
Your
Answer:

32 Explain the negotiation process. Also, describe the various

. elements of the process that impact the various negotiation
styles found in different cultures.

Your Answer:
AAA

The negotiation process comprises five stages, the ordering of

which may vary according to the cultural norms. The steps
include: (1) preparation; (2) relationship building; (3) the
exchange of task-related information; (4) persuasion; and (5)
concession and agreement.

It is helpful to managers to understand the deep-rooted cultural

and national motivations and traditional processes underlying
negotiations with people from other countries.
 
In some cultures much more time is spent in relationship
building; and in other countries negotiation takes place mostly
through intermediaries. Other countries' managers exchange
task-related information in a more indirect way than
Americans, and in some countries the host country negotiators
will place the foreign negotiators into very stressful situations
to make them give in more readily.

Contracts are ignored, taken very seriously or not used very

much at all - depending on the culture.

33 Much of the negotiation process is filled with conflict. Discuss

. the different approaches to conflict resolutions and how conflict
is handled in different cultures.

Your Answer:
AAA

  Approaches to handling conflict

 Instrumental oriented - negotiate on the basis of factual

information and logical analysis.
 Expressive oriented - the situation is handled indirectly
and implicitly, without clear delineation of the situation by
 the person handling it.

When handling conflict in different cultures, managers must be

prepared by developing an understanding of the cultural
contexts in which they will be operating. It is important to bear
in mind one's own expectations and negotiating style, as well
as to be aware of the other parties' expectations.

34 Explain the rational decision-making process. Discuss how

. culture can influence the decision-making process. 

Your Answer:
AAA

The rational decision-making process includes the following

stages: (1) defining the problem; (2) gathering and analyzing
relevant data; (3) considering alternative solutions, (4)
deciding on the best solution; and (5) implementing the
decision.
 
Cultural variables can influence the decision making process
through the following: whether a country assumes a subjective
or objective approach, the level of risk tolerance, the
manager's locus of control over outcomes, and the degree to
which the manager wants to stay with familiar solutions or try
new ones.