International Business The New Realities 4th Edition By Cavusgil - Test Bank

International Business: The New Realities, 4e (Cavusgil) Chapter 3 The Cultural Environment of International Business 1) ________ refers to the values, beliefs, customs, arts, and other products of human thought and work that characterize the people of a given society. A) Ethnicity B) Heritage C) Culture D) Race Answer: C Diff: 1: Easy Skill: Concept Objective: 3-1: Understand culture and cross-cultural risk AACSB: Analytical Thinking; Diverse and Multicultural Work 2) Jordan is employed in an American investment firm and is currently working with some Japanese clients on a new project. He uses a lot of hand gestures during meetings which his clients find very distracting and rude. This has also led to many misunderstandings between Jordan and his Japanese clients in the recent past. Which of the following best describes such a situation? A) risk aversion B) organizational anarchy C) cross-cultural risk D) acculturation Answer: C Diff: 2: Moderate Skill: Application Objective: 3-1: Understand culture and cross-cultural risk AACSB: Analytical Thinking; Diverse and Multicultural Work 3) Which of the following is true with regard to culture? A) It captures how the members of the society live. B) It is absolute. C) It does not define the collective behavior of each society. D) It is inherited. Answer: A Diff: 1: Easy Skill: Concept Objective: 3-1: Understand culture and cross-cultural risk AACSB: Analytical Thinking; Diverse and Multicultural Work 4) Culture is not ________. A) about beliefs and values of society B) relative C) a collective phenomenon D) inherited Answer: D Diff: 1: Easy Skill: Concept Objective: 3-1: Understand culture and cross-cultural risk AACSB: Analytical Thinking; Diverse and Multicultural Work 5) Socialization is defined as ________. A) the process of segregating people into different racial groups in a society B) the process of adjusting and adapting to a culture other than one's own C) the process of learning the rules and behavioral patterns appropriate to one's given society D) a situation or event in which a cultural misunderstanding puts some human value at stake Answer: C Diff: 1: Easy Skill: Concept Objective: 3-1: Understand culture and cross-cultural risk AACSB: Analytical Thinking; Diverse and Multicultural Work 6) Acculturation is defined as the process of ________. A) segregating ethnic minorities by distinct groups B) adjusting and adapting to a culture other than one's own C) learning the behavioral patterns and rules of one's own society D) forcing minority cultures to adopt the values of the dominant culture Answer: B Diff: 1: Easy Skill: Concept Objective: 3-1: Understand culture and cross-cultural risk AACSB: Analytical Thinking; Diverse and Multicultural Work Phone Center (Scenario) The Technix Computer Corporation recently finished construction of a customer service phone center in New Delhi, India. Phone center agents will be responsible for answering technical questions from customers around the globe. Technix has hired 55 local computer experts as phone agents, and a training session is underway. Technical specialists and call center specialists from the United States have flown to India to train the new Indian employees. Hank Patelli, a senior manager of a Technix phone center in Michigan, will oversee the New Delhi phone center for six months until a local manager is hired and trained to replace him. 7) After the first training session, a number of the Michigan employees expressed frustration that the Indian employees lacked technical knowledge because none of them asked questions or offered answers. Which of the following would be the best way for Hank to handle the situation? A) Remind the American employees that the Indians may be showing respect by remaining silent. B) Order the Indian employees to interact more during the session. C) Host a traditional American barbeque so the American and Indian employees can get acquainted. D) Ignore the complaints of the American employees and continue the training sessions as planned. Answer: A Diff: 2: Moderate Skill: Application Objective: 3-1: Understand culture and cross-cultural risk AACSB: Analytical Thinking; Diverse and Multicultural Work 8) Ashok, one of the Indian employees, asks Hank if the weekend training session could be rescheduled because it is a Hindu festival day. What will be the most likely outcome if Hank agrees to Ashok's request? A) Instances of absenteeism will become more pervasive among Indian employees. B) Hank will develop a relationship of trust and understanding with the Indian employees. C) Hank's decision will create divisiveness between the American and Indian employees leading to irreparable damages. D) Ashok will replace Hank as manager after six months when Hank returns to the United States. Answer: B Diff: 2: Moderate Skill: Application Objective: 3-1: Understand culture and cross-cultural risk AACSB: Analytical Thinking; Diverse and Multicultural Work 9) Culture refers to the inherited attitudinal traits of an individual. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 3-1: Understand culture and cross-cultural risk AACSB: Analytical Thinking; Diverse and Multicultural Work 10) Cultural values and attitudes can be transmitted through a variety of sources including parents, teachers, friends, government leaders, movies, television, and the Internet. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 3-1: Understand culture and cross-cultural risk AACSB: Analytical Thinking; Diverse and Multicultural Work 11) Nonverbal communication belongs to the deep cultural makeup that we are unaware of. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 3-1: Understand culture and cross-cultural risk AACSB: Analytical Thinking; Diverse and Multicultural Work 12) Religion belongs to the folk cultural makeup that we are aware of. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 3-1: Understand culture and cross-cultural risk AACSB: Analytical Thinking; Diverse and Multicultural Work 13) Businesses based in societies characterized by high uncertainty avoidance encourage managers to take risks and make quick decisions. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 3-1: Understand culture and cross-cultural risk AACSB: Analytical Thinking; Diverse and Multicultural Work 14) In a short essay, explain some of the obstacles that international firms often face when dealing with employees, customers, and business partners from other cultures. Answer: Today, firms conduct business in environments characterized by unfamiliar languages, as well as unique beliefs, norms, and behaviors. Managers need to be able to reconcile these differences to create profitable ventures. Managers not only need to develop empathy and tolerance toward cultural differences but also must acquire a sufficient degree of factual knowledge about the beliefs and values of foreign counterparts. Cross-cultural proficiency is paramount in many managerial tasks, including: managing employees, developing products and services, communicating and interacting with foreign business partners, and negotiating and structuring international business ventures. Let's consider specific examples of how cross-cultural differences may complicate company activities. ∙ Pay-for-performance system. In some countries, merit is not the main basis for promoting employees. In China and Japan, a person's age is the most important determinant. But how do such workers perform when Western firms evaluate them using performance-based measures? ∙ Lifetime employment. In some Asian countries, firms are very protective of their employees who may work for the same company all their lives. The expectations that arise from such devoted relationships can complicate dealings with outside firms. Western managers may struggle to motivate employees who expect they will always have the same job. ∙ Union-management relationships. In Germany, union bosses hold the same status as top-level managers and are allowed to sit on corporate boards. Many European firms have a business culture in which workers are relatively equal to managers. This approach can reduce the flexibility of company operations because it makes it harder to lay off workers. ∙ Developing products and services. Cultural differences necessitate adapting marketing activities to suit the specific needs of target markets. ∙ Providing services. Firms that engage in services such as lodging and retailing substantially interact with customers, implying greater cultural interaction and the potential for cognitive and communication gaps. Imagine a Western lawyer who tries to establish a law office in China. How about a Western restaurant chain operating in Russia. Both firms will encounter substantial cultural challenges. Differences in language and national character have the same effect as trade barriers. ∙ Organizational structure. Some companies prefer to delegate authority to country managers, which results in a decentralized organizational structure. Other firms have centralized structures, in which power is concentrated at regional or corporate headquarters. Firms may be bureaucratic or entrepreneurial. How do you deal with a bureaucratic partner or manage distantly located, decentralized subsidiaries? ∙ Teamwork. Cooperating with partners and host-country nationals to achieve common organizational goals is critical to business success. But what should managers do if foreign and domestic nationals don't get along? The Chinese home appliance manufacturer Haier () delayed acquiring overseas firms because management felt it lacked the ability to manage foreign nationals and integrate differing cultural systems. Diff: 3: Hard Skill: Concept Objective: 3-1; 3-4: Understand culture and cross-cultural risk, Appreciate culture's effect in international business AACSB: Analytical Thinking; Diverse and Multicultural Work 15) In a short essay, explain why international business managers should engage in critical incident analysis to avoid the self-reference criterion. Describe why an examination of values and attitudes toward culture is important in this analysis. Answer: International business managers should avoid cultural bias. Problems arise when managers simply assume that foreigners think and behave just like the folks back home. Such ethnocentric assumptions lead to poor business strategies in both planning and execution. Managers new to international business can find the behavior of a foreigner odd and perhaps improper. For example, it is easy to be offended when a foreigner does not appreciate our food, history, entertainment, or everyday traditions. In this way, cultural bias can be a significant barrier to successful interpersonal communication. A person's own culture conditions how he or she reacts to different values, behavior, or systems, so most people unconsciously assume that people in other countries experience the world as they do. They view their own culture as the norm; everything else may seem strange. This is known as the self-reference criterion-the tendency to view other cultures through the lens of our own culture. Understanding the self-reference criterion is a critical first step to avoiding cultural bias and ethnocentric mistakes. Critical incident analysis is a very useful technique that managers use to analyze awkward situations in cross-cultural encounters. The technique encourages a more effective approach to cultural differences by helping managers become more objective and develop empathy for other points of view. An examination of values and attitudes toward culture is important in this analysis. Values represent a person's judgments about what is good or bad, acceptable or unacceptable, important or unimportant, and normal or abnormal. Our values guide the development of our attitudes and preferences. Attitudes are similar to opinions but are often unconsciously held and may not have a rational basis. Prejudices are rigidly held attitudes, usually unfavorable and usually aimed at particular groups of people. Typical values in North America, northern Europe, and Japan include hard work, punctuality, and the acquisition of wealth. People from such countries may misjudge those from developing economies who may not embrace such values. Diff: 3: Hard Skill: Synthesis Objective: 3-1, 3-6: Understand culture and cross-cultural risk, Understand managerial implications of culture AACSB: Analytical Thinking 16) With regard to the iceberg concept of culture, ________ is the most deeply embedded. A) conversational patterns B) cooking C) courtship practices D) literature Answer: A Diff: 2: Moderate Skill: Concept Objective: 3-2: Learn the dimensions of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 17) ________ belongs to the folk cultural makeup that we are aware of. A) Fine arts B) Methods of problem solving C) Nonverbal communications D) Diet Answer: D Diff: 1: Easy Skill: Concept Objective: 3-2: Learn the dimensions of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 18) ________ are ways of behaving and conducting oneself in public and business situations A) Manners and customs B) Creative expressions C) Values and attitudes D) Symbolic productions Answer: A Diff: 1: Easy Skill: Concept Objective: 3-2: Learn the dimensions of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 19) Which of the following situations illustrate a polychronic perspective? A) When a North American talks to a Latin American, he or she may unconsciously back up to maintain personal space. B) In Islamic countries close interaction between men and women is not encouraged in public places. C) Latin Americans have a flexible perception of time and may not arrive exactly at the pre-determined time for appointments. D) People in young countries like Australia, Canada, and the United States are relatively focused on schedules, punctuality, and time as a resource. Answer: C Diff: 1: Easy Skill: Concept Objective: 3-2: Learn the dimensions of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 20) Values in a culture ________. A) represent the symbolic, material, and creative productions unique to a society B) are rigidly held attitudes, usually unfavorable and usually aimed at particular groups of people C) represent a person's judgments about what is good or bad, acceptable or unacceptable, important or unimportant, and normal or abnormal D) are similar to opinions but are often unconsciously held and may not have a rational basis Answer: C Diff: 1: Easy Skill: Concept Objective: 3-2: Learn the dimensions of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 21) Prejudices in a culture ________. A) represent the symbolic, material, and creative productions unique to a society B) are rigidly held attitudes, usually unfavorable, and usually aimed at particular groups of people C) guide the development of our attitudes and preferences D) represent a person's judgment about what is important and what is not Answer: B Diff: 1: Easy Skill: Concept Objective: 3-2: Learn the dimensions of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 22) In polychronic cultures, ________. A) members are easily distracted and are inclined to do many tasks at once B) people view time as linear and punctuality as a virtue C) managers make commitments, set deadlines, and adhere to a strict schedule of meetings and activities D) managers and investors are impatient and want quick returns Answer: A Diff: 1: Easy Skill: Concept Objective: 3-2: Learn the dimensions of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 23) The culture of which of the following countries has a close conversational distance? A) Russia B) Sweden C) Brazil D) United States Answer: C Diff: 2: Moderate Skill: Concept Objective: 3-2: Learn the dimensions of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 24) The purpose of material productions in a society is to ________. A) enable people to cope with their environments B) help unite people C) distinguish the dominant culture from minority cultures D) segregate people based on race and ethnicity Answer: A Diff: 1: Easy Skill: Concept Objective: 3-2: Learn the dimensions of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 25) ________ are letters, figures, colors, or other characters that communicate a meaning. A) Rituals B) Symbols C) Norms D) Customs Answer: B Diff: 1: Easy Skill: Concept Objective: 3-2: Learn the dimensions of culture AACSB: Written and Oral Communication; Analytical Thinking; Diverse and Multicultural Work 26) In cultures with a monochronic view of time, people view time as linear, managers make commitments, set deadlines, and adhere to a strict schedule of meetings and activities. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 3-2: Learn the dimensions of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 27) Company logos, trademarks, national flags, and historical monuments are considered symbolic productions. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 3-2: Learn the dimensions of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 28) How is culture like an iceberg? In a short essay, explain the relationship between the iceberg theory and international business relationships. Answer: Anthropologists use the iceberg metaphor to call attention to the many dimensions of culture-some obvious and some not so obvious. Above the surface, certain characteristics are visible, but below, unseen to the observer, is a massive base of assumptions, attitudes, and values that strongly influence decision making, relationships, conflict, and other dimensions of international business. We are usually unaware of the nine-tenths of our cultural makeup that exists below the surface. In fact, we are often not aware of our own culture unless we come in contact with another one. In cross-border business, we step into different cultural environments characterized by unfamiliar languages, and unique value systems, beliefs, and behaviors. We encounter customers and business partners who display differing lifestyles, norms, consumption behavior, shopping, and use patterns. These differences influence all dimensions of international business. Understanding cultural differences is necessary in the creation and maintenance of international business relationships. Diff: 3: Hard Skill: Concept Objective: 3-2: Learn the dimensions of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 29) How do cultural perceptions of time relate to international business? In a short essay, provide examples of contrasting cultural time perceptions. Answer: Time has a strong influence on business. It affects people's expectations about planning, scheduling, profit flows, and promptness in arriving for work and meetings. Japanese managers tend to prepare strategic plans for long periods, such as a decade. The planning horizon for Western companies is much shorter, typically a few years. Some societies are more oriented to the past, others to the present, and still others to the future. People in past-oriented cultures believe plans should be evaluated in terms of their fit with established traditions, customs, and wisdom. Innovation and change do not occur very often and are justified to the extent they fit with past experience. Europeans are relatively past-oriented, and prefer to conserve traditional ways to doing things. Young countries like Australia, Canada, and the United States are relatively focused on the present. They tend to have a monochronic orientation to time-a rigid orientation in which people are focused on schedules, punctuality, and time as a resource. They view time as linear, like a river flowing into the future, carrying workers from one activity to the next. In such cultures, where people are highly focused on the clock, managers make commitments, set deadlines, and follow a strict schedule in meetings. Punctuality is a virtue and time is money. Throughout the day, workers glance at their watches, their computer's clock, or the clock on the wall. Investors are impatient and want quick returns. Managers have a relatively short-term perspective when it comes to investments and making money. Company profitability is measured on a quarterly basis. In this way, people in the United States have acquired a reputation for being hurried and impatient. Indeed, the word business was originally spelled busyness. Some cultures have a polychronic perspective on time. In such societies, instead of performing single tasks serially, people are inclined to do many things at once. In this way, members of polychronic cultures are easily distracted. They can change plans often and easily, and long delays are sometimes needed before taking action. Punctuality per se is relatively unimportant, and managers consider time commitments flexible. They do not strictly follow the clock and schedules. They put more value on relationships and spending time with people. Diff: 3: Hard Skill: Concept Objective: 3-2: Learn the dimensions of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 30) An idiom ________. A) refers to the objective analysis of a situation B) refers to the perception about someone or something that may or may not be true C) is a highly ambiguous rhetoric device used in high-context cultures D) is an expression whose symbolic meaning is different from its literal meaning Answer: D Diff: 2: Moderate Skill: Concept Objective: 3-3: Appreciate the role of language and religion in culture AACSB: Analytical Thinking; Diverse and Multicultural Work 31) Which of the following is true about language? A) Language does not entail facial expressions and gestures. B) National languages, dialects, and translation facilitate straightforward communication. C) Language has both verbal and nonverbal characteristics. D) Business jargons are common across cultures. Answer: C Diff: 1: Easy Skill: Concept Objective: 3-3: Appreciate the role of language and religion in culture AACSB: Analytical Thinking; Diverse and Multicultural Work 32) Advertising themes often convey unfavorable and embarrassing interpretations. This is most likely because ________. A) popular slogans used in international advertising do not use idiomatic expressions B) advertising themes often lose their original meaning in translation or give the wrong impression C) language is rarely subtle D) colloquial expressions are more likely than not to puzzle native speakers Answer: B Diff: 1: Easy Skill: Concept Objective: 3-3: Appreciate the role of language and religion in culture AACSB: Analytical Thinking; Diverse and Multicultural Work 33) ________ is the most common primary language in the world. A) Chinese B) Arabic C) Spanish D) English Answer: A Diff: 1: Easy Skill: Concept Objective: 3-3: Appreciate the role of language and religion in culture AACSB: Analytical Thinking; Diverse and Multicultural Work 34) ________ is the most populous Muslim country in the world. A) Saudi Arabia B) Iran C) Egypt D) Indonesia Answer: D Diff: 2: Moderate Skill: Concept Objective: 3-3: Appreciate the role of language and religion in culture AACSB: Analytical Thinking; Diverse and Multicultural Work 35) In which of the following countries would alcoholic drinks be prohibited? A) Saudi Arabia B) Mexico C) Spain D) Italy Answer: A Diff: 1: Easy Skill: Concept Objective: 3-3: Appreciate the role of language and religion in culture AACSB: Analytical Thinking; Diverse and Multicultural Work 36) Which of the following religions has the largest number of adherents? A) Islam B) Christianity C) Hinduism D) Judaism Answer: B Diff: 1: Easy Skill: Application Objective: 3-3: Appreciate the role of language and religion in culture AACSB: Analytical Thinking; Diverse and Multicultural Work 37) Which of the following is NOT true about Islam? A) Islam prohibits gambling. B) Islam condemns charging interest for money loaned. C) Islam discourages free trade. D) Islam prohibits drinking alcoholic drinks . Answer: C Diff: 2: Moderate Skill: Concept Objective: 3-3: Appreciate the role of language and religion in culture AACSB: Analytical Thinking; Diverse and Multicultural Work Restaurant Chain Internationalization (Scenario) Harold Meyer is the vice president of a successful U.S. restaurant chain. He is getting ready to transfer to the Gulf Arab region to help establish the restaurant chain in Saudi Arabia. He is in the process of gathering information to learn about Saudi culture. 38) Which type of religious practices will Harold most likely have to study? A) Christian B) Jewish C) Confucian D) Islamic Answer: D Diff: 2: Moderate Skill: Critical Thinking Objective: 3-3: Appreciate the role of language and religion in culture AACSB: Analytical Thinking; Diverse and Multicultural Work; Environments and Reflective Thinking 39) Harold decides to drop alcoholic drinks from the restaurant chain menu in Saudi Arabia. Which of the following might have led to his decision? A) Alcoholic drinks are not allowed in Saudi Arabia. B) Saudi consumers prefer local alcoholic drinks. C) Imported alcoholic drinks are more expensive than local drinks. D) Saudi consumers prefer European alcoholic drinks . Answer: A Diff: 2: Moderate Skill: Critical Thinking Objective: 3-3: Appreciate the role of language and religion in culture AACSB: Analytical Thinking; Diverse and Multicultural Work; Environments and Reflective Thinking 40) English is the most common primary language in the world. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 3-3: Appreciate the role of language and religion in culture AACSB: Analytical Thinking; Diverse and Multicultural Work 41) Language has both verbal and nonverbal characteristics. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 3-3: Appreciate the role of language and religion in culture AACSB: Analytical Thinking; Diverse and Multicultural Work 42) Business jargon unique to a culture can impede communication. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 3-3: Appreciate the role of language and religion in culture AACSB: Analytical Thinking; Diverse and Multicultural Work 43) In a short essay, describe some of the subtleties of language. Provide examples that relate to international business situations. Answer: Language is a major differentiator between cultural groups and castes and provides an essential means for business leaders to effectively communicate with employees, suppliers and customers. Language can be classified as verbal and non-verbal. National languages, dialects, and translation tend to complicate verbal communication. It is sometimes difficult to find words to convey the same meaning in a different language. For example, a one-word equivalent to "aftertaste" does not exist in many languages. Even when a word can be translated well into other languages, its concept and meaning may not be universal. For example, the Japanese word muzukashii can be variously translated as "difficult," "delicate," or "I don't want to discuss it," but in business negotiations it usually means "out of the question." Advertising themes often lose their original meaning in translation or give the wrong impression. Diff: 3: Hard Skill: Concept Objective: 3-3: Appreciate the role of language and religion in culture AACSB: Analytical Thinking; Diverse and Multicultural Work 44) Discuss the economic and business implications of religion. Answer: Religion appears to have an effect on economic and business activities. For instance, Islam encourages free trade through rules that prohibit restraints on market-based exchange, such as monopolies and price fixing. Islam encourages the free flow of information that facilitates efficient demand and supply. The Qur'an condemns charging interest for money loaned. Thus, banks in Islamic countries have devised methods for financing debt without violating Sharia law. The Qur'an prohibits drinking alcohol, gambling, and showing too much skin. These restrictions affect firms that deal in alcoholic beverages, resorts, entertainment, and women's clothing. Many multinational firms are reaching out to Muslim communities. Nokia launched a mobile phone application that shows Muslims the direction toward Mecca, Islam's holiest site, when they pray. Heineken, the Dutch brewing giant, rolled out the nonalcoholic malt drink Fayrouz for the Islamic market. In general, MNEs are allowed to operate as long as they abide by Sharia law, do not exploit people, and earn profits fairly Religious affiliations help create bonds of trust and shared commitment, which facilitate lending and trade. Religion can boost GDP in a country by reducing corruption, and by increasing respect for law and order. Religion that promotes moral values should help foster successful economic systems. Conversely, a lack of ethical values tends to coincide with economic decay. A lawless society cannot sustain normal business activities for long. It is noteworthy, however, that some societies with strong religious values-for example, most Middle Eastern countries and their embrace of Islam, or southern Africa and in many Christian devotees-have not produced high living standards for their citizens. This implies religion alone is insufficient to support economic development. Other factors, such as strong private property rights, political and economic freedom, and an entrepreneurial spirit, are also important. Diff: 3: Hard Skill: Concept Objective: 3-3: Appreciate the role of language and religion in culture AACSB: Analytical Thinking; Diverse and Multicultural Work 45) The Internet and other communications technologies imply greater likelihood of cross-cultural miscommunications and blunder. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 3-4: Appreciate culture's effect in international business AACSB: Analytical Thinking; Diverse and Multicultural Work 46) Communications, information, and transportation technologies have decreased people's ability to learn about and connect with unfamiliar cultures. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 3-4: Appreciate culture's effect in international business AACSB: Analytical Thinking; Diverse and Multicultural Work 47) Differences in language and national character have similar effects as trade barriers. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 3-4: Appreciate culture's effect in international business AACSB: Analytical Thinking; Diverse and Multicultural Work 48) In the advanced economies, firms that engage in services such as lodging and retailing account for a much lesser share of FDI than firms that manufacture products. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 3-4: Appreciate culture's effect in international business AACSB: Analytical Thinking; Diverse and Multicultural Work 49) Cultural differences necessitate adapting marketing activities to suit the specific needs of target markets. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 3-4: Appreciate culture's effect in international business AACSB: Analytical Thinking; Diverse and Multicultural Work 50) In companies with decentralized organizational structure, power is concentrated at the regional or corporate headquarters. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 3-4: Appreciate culture's effect in international business AACSB: Analytical Thinking; Diverse and Multicultural Work 51) In China and Japan, a person's age is the most important determinant of employee promotion. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 3-4: Appreciate culture's effect in international business AACSB: Analytical Thinking; Diverse and Multicultural Work 52) In a short essay, explain how a "pay-for-performance system" and "lifetime employment" complicate company activities. Explain how these two cross-cultural differences reflect Hofstede's long-term versus short-term orientation. Answer: Effective handling of the cross-cultural interface is a critical source of firms' competitive advantage. Managers not only need to develop empathy and tolerance toward cultural differences but also must acquire a sufficient degree of factual knowledge about the beliefs and values of foreign counterparts. Pay-for-performance system: In some countries, merit is not the main basis for promoting employees. In China and Japan, a person's age is the most important determinant. But how do such workers perform when Western firms evaluate them using performance-based measures? Lifetime employment: In some Asian countries, firms are very protective of their employees who may work for the same company all their lives. The expectations that arise from such devoted relationships can complicate dealings with outside firms. Western managers may struggle to motivate employees who expect they will always have the same job. These cross-cultural challenges reflect Hofstede's cultural dimensions of long-term versus short-term orientation. Long-term versus short-term orientation refers to the degree to which people and organizations defer pleasure or gratification to achieve long-term success. Firms and people in cultures with a long-term orientation tend to take the long view to planning and living. They focus on years and decades. The long-term dimension is best illustrated by the so-called Asian values-traditional cultural orientations of several Asian societies, including China, Japan, and Singapore. These values are partly based on the teachings of the Chinese philosopher Confucius. They include discipline, loyalty, hard work, regard for education, respect for family, focus on group harmony, and control over one's desires. Scholars credit these values for the East Asian miracle, the remarkable economic growth and modernization of East Asian nations during the last several decades. By contrast, the United States and most other Western countries emphasize a short-term orientation. Diff: 3: Hard Skill: Synthesis Objective: 3-4, 3-6: Appreciate culture's effect in international business, Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 53) Low-context cultures tend to ________. A) emphasize nonverbal messages B) conduct negotiations as efficiently as possible C) view communication as a means to promote smooth, harmonious relationships D) prefer an indirect and polite face-saving style of communication Answer: B Diff: 1: Easy Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Written and Oral Communication; Analytical Thinking; Diverse and Multicultural Work 54) Which of the following is characteristic of collectivist societies? A) In collectivist societies, each person tends to focus on his or her own self-interest. B) In collectivist societies, compromise and conformity help maintain group harmony. C) In collectivist societies, ties among people are relatively loose. D) In collectivist societies, those who compete best are rewarded financially. Answer: B Diff: 2: Moderate Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 55) Which of the following countries is an example of a strongly collectivist society? A) Ireland B) Canada C) Australia D) China Answer: D Diff: 2: Moderate Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 56) High power-distance countries are characterized by ________. A) organizations that grant a high degree of autonomy to lower-level employees B) a strong desire to minimize gaps between the powerful and the weak C) a relative indifference toward social inequalities D) a relative equality in terms of income and power Answer: C Diff: 1: Easy Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 57) Firms with high power distance are most likely to be characterized by ________. A) concentrated power among executives and little autonomy for subordinates B) an equal distribution of power among executives, managers, and lower-level employees C) a minimal gap between the powerful and the weak D) a highly flexible work environment Answer: A Diff: 1: Easy Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 58) Which of the following is true about low-context cultures? A) People belonging to low-context cultures do not prefer explicit communications. B) Low-context cultures emphasize an indirect and polite face-saving style of communication. C) Low-context cultures rely on elaborate verbal explanations, putting much emphasis on spoken words. D) People belonging to low-context cultures view communication as a means to promote smooth, harmonious relationships. Answer: C Diff: 1: Easy Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Written and Oral Communication; Analytical Thinking; Diverse and Multicultural Work 59) Which of the following countries exhibit a high-context culture? A) Japan B) Germany C) The United States of America D) Switzerland Answer: A Diff: 2: Moderate Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 60) Titania is a country characterized by a high-context culture. This implies that ________. A) the people of Titania tend to conduct negotiations as efficiently as possible B) the people of Titania tend to use legalistic contracts to conclude agreements C) business is primarily deal-oriented in Titania D) personal relations and goodwill are valued in Titania Answer: D Diff: 2: Moderate Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 61) Business dealings in low-context cultures are characterized by ________. A) a high degree of sensitivity to the context B) a high degree of mutual respect C) efficient negotiations D) complex rituals Answer: C Diff: 1: Easy Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 62) Which of the following refers to the extent to which people can tolerate risk in their lives? A) uncertainty avoidance B) long-term versus short-term orientation C) power distance D) individualism Answer: A Diff: 1: Easy Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 63) Which of the following managers portrays high uncertainty avoidance? A) Greg manages the market development fund team for a leading computer manufacturing firm. He is entrepreneurial and makes decisions quickly under tough situations. B) James is the business head of marketing in a leading automobile manufacturing company. He coaches his team members to become accustomed to risk and organizational change. C) Henry is the managing editor at Paes publications. He emphasizes careful evaluation of all options and ensuring they are consistent with company policies, which often slows down the progress. D) David manages the technical team at TR Solutions. He is open to different opinions from team members and is not threatened by differing opinions. Answer: C Diff: 2: Moderate Skill: Application Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 64) Feminine cultures tend to emphasize ________. A) interdependence among people B) accumulation of wealth C) ambition D) competitiveness Answer: A Diff: 1: Easy Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 65) ________ refers to a distinctive tradition or institution strongly associated with a particular society. A) Cultural metaphor B) Totem C) Moiety D) Cultural pluralism Answer: A Diff: 1: Easy Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 66) In a deal-oriented culture, managers ________. A) focus on the task at hand and prefer getting down to business B) hold rigid attitudes, usually unfavorable and usually aimed at particular groups of people C) emphasize affiliations with people D) seek to build trust and rapport and get to know the other party in business interactions Answer: A Diff: 1: Easy Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work Subjective dimensions of culture (Scenario) In the last two years, the sales of consumer electronics in China have risen by 9.4 percent. Moreover, the market is becoming increasingly competitive since a large number of Japanese, European, and American manufacturers are building factories to face the competition from low-cost Chinese manufacturers. Grande Co. is a U.S.-based consumer electronics manufacturer that has been negotiating with Chinese authorities for eight years to open a factory in the country. Since Grande has spent significant time and energy on negotiation in the past eight years, they should quit and set up a factory in a more responsive society. 67) Which of the following, if true, strengthens the conclusion of the above passage? A) In China, companies belonging to deal-oriented cultures have been the most successful. B) American companies best thrive in cultures that are deal-oriented. C) For the Chinese, relationship is less important than business deals. D) The management of Grande is characterized by a host country mind-set. Answer: B Diff: 2: Moderate Skill: Critical Thinking Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work; Environments and Reflective Thinking 68) Which of the following can be inferred from the above passage? A) The Chinese culture is more likely than not to be deal-oriented. B) The Chinese culture is more likely than not to be relationship-oriented. C) The American culture is more likely than not to be relationship-oriented. D) The American culture is less likely to take an impersonal approach to business. Answer: B Diff: 2: Moderate Skill: Critical Thinking Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work; Environments and Reflective Thinking Restaurant Chain Internationalization (Scenario) Harold Meyer is the vice president of a successful U.S. restaurant chain. He is getting ready to transfer to the Gulf Arab region to help establish the restaurant chain in Saudi Arabia. He is in the process of gathering information to learn about Saudi culture. 69) Harold learned that organizations in Saudi Arabia emphasizes loyalty to the family and tribe and that ties among individuals are highly valued. Based on Harold's observation, Saudi Arabia is ________. A) a collectivist culture B) an individualistic culture C) characterized by low power distance D) a feminine culture Answer: A Diff: 1: Easy Skill: Critical Thinking Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work; Environments and Reflective Thinking 70) Japan and China are examples of low-context cultures. Answer: FALSE Diff: 2: Moderate Skill: Application Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 71) In collectivist societies, competition for resources is the norm, and those who compete best are rewarded financially. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 72) A cultural metaphor is a generalization about a group of people that may or may not be factual. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 73) In societies with low uncertainty-avoidance, companies emphasize stable careers and produce many rules to regulate worker actions and minimize ambiguity. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 74) In deal-oriented cultures, managers focus on the task at hand and prefer getting down to business. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 75) What are some of the criticisms of Hofstede's study? In a short essay, discuss the limitations of the study. Answer: While useful, the Hofstede framework has its weaknesses. The original research was based on data collected around 1970. Much has changed since then, including successive phases of globalization, widespread exposure to global media, technological advances, and changes in the role of women in the workforce. In addition, Hofstede's findings are based on the employees of a single company-IBM-in a single industry, making it difficult to generalize. Hofstede's data were collected using questionnaires, which is not effective for probing some of the deep issues that surround culture. Finally, Hofstede did not capture all potential dimensions of culture. Nevertheless, Hofstede's framework is useful as a general guide and for gaining deeper understanding in cross-national interactions with business partners, customers, and value-chain members. Diff: 3: Hard Skill: Concept Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 76) In a short essay, discuss the three cultures into which employees are socialized-national culture, professional culture, and corporate culture. Answer: Employees are socialized into three cultures: national culture, professional culture, and corporate culture. Working effectively within these overlapping cultures is challenging. The influence of professional and corporate culture tends to grow as people are socialized into a profession and workplace. Most companies have a distinctive set of norms, values, and modes of behavior that distinguish them from other organizations. Such differences are often as distinctive as national culture, so that two firms from the same country can have vastly different organizational cultures. For example, Standard Chartered (www. ), a time-honored British bank, has a conservative culture that may be slow to change. By contrast, Virgin (), the much younger British music and travel provider, has an experimental, risk-taking culture. These cultural layers present yet another challenge for the manager: To what extent is a particular behavior caused by national culture? In companies with a strong organizational culture, it is hard to determine where the corporate influence begins and the national influence ends. In the French cosmetics firm L'Oreal (), the distinction between national and corporate cultures is not always clear. The French have a great deal of experience in the cosmetics and fashion industries, but L'Oreal is a global firm staffed by managers from around the world. Their influence, combined with management's receptiveness to world culture, has shaped L'Oreal into a unique organization, distinctive within French culture. Diff: 3: Hard Skill: Synthesis Objective: 3-5: Learn models and explanations of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 77) Polycentric orientation refers to ________. A) a host-country mind-set in which the manager develops a strong affinity with the country in which she or he conducts business B) the use of one's own culture as the standard for judging other cultures C) a collectivist mind-set, which emphasizes conformity, duty, prescribed roles, and sacrifice for the greater good D) the tendency to rely on elaborate verbal explanations, putting much emphasis on spoken words Answer: A Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 78) Using one's own culture as a standard for judging other cultures is known as ________. A) anthropocentric orientation B) ethnocentric orientation C) geocentric orientation D) polycentric orientation Answer: B Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 79) As part of opening manufacturing units abroad, a U.S. apparel firm decided to send its apparel production coordinator Chris to Bangladesh. Chris is distressed that people don't come to meetings on time and finds it disrespectful when his team members stand too close to him. Chris may trigger a cross-cultural risk by a(n) ________. A) ethnocentric orientation B) anthropocentric orientation C) polycentric orientation D) geocentric orientation Answer: A Diff: 2: Moderate Skill: Application Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 80) Which of the following situations is an example of geocentric orientation? A) Marsha, CEO of QST Solutions, believes that top level executives at her company should be Americans to avoid any communication gaps. B) The Gram Group of retail stores decided to open branches in China and focus on changing their policies to suit the Chinese population to maximize profits. C) Derek, the VP of Banner Technologies, wants managers from the firm's India office to visit the U.S. branch to provide training to American officials visiting India. D) Chill & Break Inc., an American global coffee company, is used to judging other cultures by the standards of its own culture. Answer: C Diff: 2: Moderate Skill: Application Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work Japanese Supercenter (Scenario) The Tag-Mart chain of discount superstores is nearing completion of its new supercenter in Tokyo. The Tokyo store is the first foreign store for the large U.S.-based company. Tag-Mart offers a large variety of products at virtually unbeatable prices. A group of Tag-Mart representatives has traveled to Tokyo to inspect the new store and hire a store manager. The top two contenders for the position are Hisako Aoki and Takematsu Sato. Aoki has 25 years of experience managing a local department store renowned for its customer service. Sato, born and raised in Japan, earned a college degree in the U.S. before working six years as a manager at a Texas Tag-Mart. 81) Which of the following best supports the selection of Sato over Aoki? A) Sato is familiar with both Tag-Mart operations as well as the local customs in Japan. B) Sato is no more skilled in employee training techniques than Aoki. C) Sato is clearly more relationship-oriented than Aoki. D) Sato is likely to discourage homogenization of cultures. Answer: A Diff: 2: Moderate Skill: Critical Thinking Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work; Environments and Reflective Thinking 82) Which of the following, if true, most supports the decision to operate the Tokyo store in a manner similar to Tag-Mart stores in the U.S.? A) Customer service is of utmost importance to local shoppers. B) Finding efficient and knowledgeable employees in Tokyo is difficult. C) Other supercenter stores in Tokyo have gone out of business in the last year. D) Local shoppers desire both efficiency and low prices. Answer: D Diff: 2: Moderate Skill: Critical Thinking Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work; Environments and Reflective Thinking 83) Which of the following is most important for Tag-Mart's top management to determine while making a choice between Sato and Aoki as the new store manager? A) How many shoppers are expected at the Tokyo Tag-Mart grand opening sale? B) How many locally owned stores will Tokyo Tag-Mart compete against? C) Would customers at the Tokyo Tag-Mart prefer strong customer service or a U.S.-style shopping experience? D) What is the average age and annual income of Tokyo Tag-Mart shoppers? Answer: C Diff: 2: Moderate Skill: Critical Thinking Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work; Environments and Reflective Thinking 84) Which of the following is a cultural barrier inherent to service firms that internationalize via FDI? A) Service firms are unable to infiltrate international markets due to language issues. B) The source of a firm's funding determines the location of its international subsidiaries. C) A firm's corporate culture is overly influenced by its national culture. D) Firms that internationalize via FDI usually make large spending cuts on advertising campaigns. Answer: C Diff: 2: Moderate Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 85) Managers can achieve effective cross-cultural interaction by ________. A) resisting cultural homogeneity B) keeping an open mind and being inquisitive C) rushing into conclusions about other's behaviors D) using business jargons to facilitate communication Answer: B Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 86) Which of the following types of assumptions is the cause of most problems between business managers and foreign employees? A) geocentric assumptions B) ethnocentric assumptions C) polycentric assumptions D) religious assumptions Answer: B Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 87) Self-reference criterion is ________. A) the tendency to assume that all people from one culture are the same B) the tendency to understand a culture without regard to country boundaries C) the propensity to view other cultures through the lens of one's own culture D) the propensity to understand culture as an inherited trait Answer: C Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 88) In cross-border business, successful managers ________. A) adhere to a self-reference criterion B) are empathetic to cultural differences C) overly emphasize the importance of business jargons in facilitating effective cross-cultural communication D) ritually avoid analyzing awkward situations in cross-cultural encounters Answer: B Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 89) Cultural intelligence is defined as ________. A) a person's ability to function effectively in situations characterized by cultural diversity B) the method of analyzing awkward situations in cross-cultural encounters by developing objectivity and empathy for other points of view C) the measurement of the inequalities in power that exist among people D) the information gathered by local firms about those entering foreign markets Answer: A Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 90) Cross-cultural proficiency is characterized by all of the following EXCEPT ________. A) perceptiveness B) flexibility and adaptability C) valuing personal relationships D) tolerance for ambiguity Answer: D Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 91) Managers with a geocentric view of the world ________. A) are generally better at understanding and accommodating similarities and differences among cultures B) ritually avoid analyzing awkward situations in cross-cultural encounters C) have a strong preference for ambiguity D) tend to view other cultures through the lens of his/her own culture Answer: A Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 92) Cross-cultural risk is often intensified by managers with geocentric tendencies. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 93) An ethnocentric orientation positively impacts the ability of managers to manage business projects and new business practices abroad. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 94) Ethnocentric orientation refers to a host-country mind-set in which the manager develops a strong affinity with the country in which she or he conducts business. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 95) Most companies have a distinctive set of norms, values, and modes of behavior that distinguish them from other organizations. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 96) Ethnocentric assumptions lead to poor business strategies in both planning and execution. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 97) Managers with an ethnocentric view of the world are generally better at understanding and dealing with similarities and differences among cultures. Answer: FALSE Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 98) Cross-cultural proficiency is characterized by four key personality traits: tolerance for ambiguity, perceptiveness, valuing personal relationships, and flexibility and adaptability. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 99) Cultural intelligence focuses on specific capabilities important for high-quality personal relationships and effectiveness in culturally diverse settings and work groups. Answer: TRUE Diff: 1: Easy Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 100) Company employees are socialized by three cultures: national culture, professional culture, and corporate culture. In a short essay, explain corporate culture. Provide examples of companies that have distinctive corporate cultures. Answer: Most companies have a distinctive set of norms, values, and modes of behavior that distinguish them from other organizations. Such differences are often as distinctive as national culture, so that two firms from the same country can have vastly different organizational cultures. For ex-ample, Standard Chartered (www. ), a time-honored British bank, has a conservative culture that may be slow to change. By contrast, Virgin (), the much younger British music and travel provider, has an experimental, risk-taking culture. Diff: 3: Hard Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work 101) In a short essay, describe three guidelines that managers should follow to achieve cross-cultural success. Answer: GUIDELINE 1: Acquire factual knowledge about the other culture, and try to speak the language. Successful managers acquire a base of knowledge about the values, attitudes, and lifestyles of the cultures that they encounter. Managers study the political and economic background of target countries-their history, current national affairs, and perceptions about other cultures. Such knowledge increases understanding about the partner's mindset, organization, and objectives. Sincere interest in the target culture helps establish trust and respect. It helps lay the foundation for open and productive relationships. Even modest attempts to speak the local language are welcome. Superior language skills help ensure international business success. In the long run, managers who can converse in multiple languages are more likely to negotiate successfully and have positive business meetings. GUIDELINE 2: Avoid cultural bias. Problems arise when managers simply assume that foreigners think and behave just like the folks back home. Such ethnocentric assumptions lead to poor business strategies in both planning and execution. Managers new to international business can find the behavior of a foreigner odd and perhaps improper. For example, it is easy to be offended when a foreigner does not appreciate our food, history, entertainment, or everyday traditions. In this way, cultural bias can be a significant barrier to successful interpersonal communication. Ethnocentric assumptions lead to poor business strategies in both planning and execution. Managers new to international business often find the behavior of a foreigner hard to explain. For example, it is easy to be offended when our foreign counterpart does not appreciate our food, history, sports, or entertainment or is otherwise inconsiderate. This situation may interfere with the manager's ability to interact effectively with the foreigner, even leading to communication breakdown. In this way, culture can be a significant barrier to successful cross-cultural communication. GUIDELINE 3: Develop cross-cultural skills. Working effectively with counterparts from other cultures requires managers to make an investment in their professional development. Each culture has its own ways of conducting business and negotiations, and solving disputes. Managers are exposed to high levels of uncertainty. Concepts and relationships can be understood in a variety of ways. To be successful in international business, managers should strive for cross-cultural proficiency. Diff: 3: Hard Skill: Concept Objective: 3-6: Understand managerial implications of culture AACSB: Analytical Thinking; Diverse and Multicultural Work