International Management Culture Strategy and Behavior 10th Edition by Luthans – Test Bank

$20.00

Pay And Download
Complete Test Bank With Answers
 
 
Sample Questions Posted Below

 

 

 

 

Chapter 05

Managing Across Cultures

 

True/False Questions

 

  1. At Xiaomi, individual achievement is highly regarded.

Answer: False

Feedback: Collectivism and group achievement permeate Xiaomi’s corporate culture. From initial design to final production, collaboration between employees and the public is more celebrated than individual creativity.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 1 Easy

Topic: Introduction

 

  1. Firms with a polycentric predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.

Answer: True

Feedback: Firms with a polycentric predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 1 Easy

Topic: The Strategy for Managing across Cultures

 

  1. An ethnocentric predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis.

Answer: False

Feedback: A company with an ethnocentric predisposition allows the values and interests of the parent company to guide strategic decisions. A regiocentric predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 1 Easy

Topic: The Strategy for Managing across Cultures

 

  1. A company with a geocentric predisposition tries to integrate a global systems approach to decision making.

Answer: True

Feedback: A company with a geocentric predisposition tries to integrate a global systems approach to decision making.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 1 Easy

Topic: The Strategy for Managing across Cultures

 

  1. A firm with an ethnocentric predisposition may find it difficult to implement a geocentric strategy because it is unaccustomed to using global integration.

Answer: True

Feedback: A firm with an ethnocentric predisposition may find it difficult to implement a geocentric strategy because it is unaccustomed to using global integration.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 2 Medium

Topic: The Strategy for Managing across Cultures

 

  1. The difficulty of managing global organizations, as in the case of some local subsidiaries that want more decentralization and others that want less, is one of the factors that are moving companies to facilitate the development of unique strategies for different cultures.

Answer: True

Feedback: A number of factors are moving companies to facilitate the development of unique strategies for different cultures. One of these factors is the difficulty of managing global organizations, as in the case of some local subsidiaries that want more decentralization and others that want less.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 1 Easy

Topic: The Strategy for Managing across Cultures

 

  1. In a low-context culture, insiders and outsiders are readily distinguished.

Answer: False

Feedback: In a low-context culture, insiders and outsiders are not readily distinguished. The latter are encouraged to join the inner circle.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 1 Easy

Topic: Cross-Cultural Differences and Similarities

 

  1. In a high-context culture, relationships between individuals are relatively short in duration.

Answer: False

Feedback: In a high-context culture, relationships between people are relatively long lasting. Individuals feel deep personal involvement with each other.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 1 Easy

Topic: Cross-Cultural Differences and Similarities

 

  1. In America, authority is diffused throughout the bureaucratic system and personal responsibility is hard to pin down.

Answer: True

Feedback: In the United States, authority is diffused throughout the bureaucratic system and personal responsibility is hard to pin down.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 1 Easy

Topic: Cross-Cultural Differences and Similarities

 

  1. In Japan, compensation levels are determined by using skill, ability, and performance.

Answer: False

Feedback: In Japan, compensation levels are determined by using the objective factors of age, length of service, and educational background rather than skill, ability, and performance. Performance does not count until after an employee reaches age 45.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 1 Easy

Topic: Cross-Cultural Differences and Similarities

 

  1. In Japan, people often are hired based on what they can do for the firm in the short run because many of them eventually will quit or be downsized.

Answer: False

Feedback: Recruitment and selection in Japanese firms often are designed to help identify those individuals who will do the best job over the long run. In the United States, people often are hired based on what they can do for the firm in the short run because many of them eventually will quit or be downsized.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 1 Easy

Topic: Cross-Cultural Differences and Similarities

 

  1. In Japan, management and unions view each other in a much more adversarial way, and in the United States, unions are regarded as partners.

Answer: False

Feedback: In Japan, unions are regarded as partners. In the United States, management and unions view each other in a much more adversarial way.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 1 Easy

Topic: Cross-Cultural Differences and Similarities

 

  1. When conducting business in China, one must realize that individualism is highly prized.

Answer: False

Feedback: When conducting business in China, one must realize that the Chinese are a collective society in which people pride themselves on being members of a group. Chinese people are very proud of their collective economic accomplishments and want to share these feelings with outsiders.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. When conducting business in Russia, it is important to build personal relationships with partners.

Answer: True

Feedback: When conducting business in Russia, it is important to build personal relationships with partners. Business laws and contracts do not mean as much in Russia as they do in the West.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. In the workplace, many French people are motivated by competition and the desire to emulate fellow workers.

Answer: False

Feedback: In the workplace, many French people are not motivated by competition or the desire to emulate fellow workers. They often are accused of not having as intense a work ethic as, for example, Americans or Asians.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. In general, French employees give utmost importance to quality of life and do not derive much motivation from professional accomplishment.

Answer: True

Feedback: In general, French employees give utmost importance to quality of life and do not derive much motivation from professional accomplishment. As a result, they attach a great deal of importance to leisure time, and many are unwilling to sacrifice the enjoyment of life for dedication to work.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. Indians are very tolerant of outsiders and understand that many are unfamiliar with local customs and procedures.

Answer: True

Feedback: Indians are very tolerant of outsiders and understand that many are unfamiliar with local customs and procedures. Therefore, there is no need to make a phony attempt to conform to Indian cultural traditions; making an effort to be polite and courteous is sufficient.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. Chinese culture tends to value punctuality, so it is important that those who do business with them arrive on time.

Answer: True

Feedback: Chinese culture tends to value punctuality, so it is important that those who do business with them arrive on time. The issue of time is a major cultural difference between China and many Western countries.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. In Arab countries, initial meetings typically are used to get to know the other party.

Answer: True

Feedback: In Arab countries, initial meetings typically are used to get to know the other party. Business-related discussions may not occur until the third or fourth meeting.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. When doing business in Arab countries, it is mandatory for the other party to bring an expensive gift for the Arab businesspeople.

Answer: False

Feedback: In contrast to the common perception among many Western businesspeople who have never been to an Arab country, it is not necessary to bring the other party a gift. If this is done, however, it should be a modest gift; a good example is a novelty or souvenir item from the visitor’s home country.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

 

Multiple Choice Questions

 

  1. In the context of the smartphone industry, which of the following helps Apple differentiate itself from its competitors?
  2. Product innovation
  3. Low-cost strategy
  4. Group achievement
  5. Collective approach to design

Answer: A

Feedback: Product innovation helps Apple differentiate itself from its competitors. Having spent millions in research and development for new technology and improved designs, Apple has accused companies of essentially stealing patent-protected technology, and it has sued numerous companies to protect its intellectual property.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 2 Medium

Topic: Taking a Bite Out of Apple: Corporate Culture and an Unlikely Chinese Start-Up

 

  1. In the context of Xiaomi’s unconventional approach to design, which of the following is used as a key element of its strategy?
  2. Personal excellence
  3. Patent-protected technology
  4. Long-term inventory holding
  5. Crowd-sourcing

Answer: D

Feedback: In the context of Xiaomi’s unconventional approach to design, crowd-sourcing is used as a key element of its strategy. End users provide input and feedback continuously to Xiaomi, shaping the direction in which Xiaomi takes it products.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 2 Medium

Topic: Taking a Bite Out of Apple: Corporate Culture and an Unlikely Chinese Start-Up

 

  1. In the context of product focus in the smartphone industry, which of the following approaches is used by Apple to achieve success?
  2. Maintaining first-mover advantage
  3. Celebrating collaboration between employees and the public
  4. Adjusting production to meet demand
  5. Imitating patent-protected technology

Answer: A

Feedback: In the context of product focus in the smartphone industry, maintaining first-mover advantage is an approach used by Apple to achieve success. As a result, Apple focuses narrowly on a few key products, with little variation in features and price.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 2 Medium

Topic: Taking a Bite Out of Apple: Corporate Culture and an Unlikely Chinese Start-Up

 

  1. A company with a(n) _____ predisposition tries to integrate a global systems approach to decision making.
  2. ethnocentric
  3. polycentric
  4. geocentric
  5. regiocentric

Answer: C

Feedback: Most multinational corporations have a cultural strategic predisposition toward doing things in a particular way, and four distinct predispositions have been identified: ethnocentric, polycentric, regiocentric, and geocentric. A company with a geocentric predisposition tries to integrate a global systems approach to decision making.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 1 Easy

Topic: The Strategy for Managing across Cultures

 

  1. A company with a(n) _____ predisposition allows the values and interests of the parent company to guide strategic decisions.
  2. polycentric
  3. geocentric
  4. ethnocentric
  5. regiocentric

Answer: C

Feedback: A company with an ethnocentric predisposition allows the values and interests of the parent company to guide strategic decisions.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 1 Easy

Topic: The Strategy for Managing across Cultures

 

  1. Firms with a(n) _____ predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.
  2. polycentric
  3. ethnocentric
  4. regiocentric
  5. geocentric

Answer: A

Feedback: Firms with a polycentric predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 1 Easy

Topic: The Strategy for Managing across Cultures

 

  1. A(n) _____ predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis.
  2. geocentric
  3. polycentric
  4. ethnocentric
  5. regiocentric

Answer: D

Feedback: A regiocentric predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 1 Easy

Topic: The Strategy for Managing across Cultures

 

  1. _____ is a belief that one worldwide approach to doing business is the key to both efficiency and effectiveness.
  2. International complacency
  3. Globalization imperative
  4. Worldwide indifference
  5. Cross-cultural contentment

Answer: B

Feedback: Despite the need for and, in general, the tendency of MNCs to address regional differentiation issues, many MNCs remain committed to a globalization imperative, which is a belief that one worldwide approach to doing business is the key to both efficiency and effectiveness.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 1 Easy

Topic: The Strategy for Managing across Cultures

 

  1. Firms with a polycentric predisposition have a strategy of _____.
  2. global integration and national responsiveness
  3. national responsiveness
  4. global integration
  5. regional integration and national responsiveness

Answer: B

Feedback: Firms with a polycentric predisposition have a strategy of national responsiveness.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 2 Medium

Topic: The Strategy for Managing across Cultures

 

  1. Firms with a geocentric predisposition have a _____ culture.
  2. home country
  3. global
  4. host country
  5. regional

Answer: B

Feedback: Firms with a geocentric predisposition have a global culture.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 1 Easy

Topic: The Strategy for Managing across Cultures

 

  1. A firm with an ethnocentric orientation:
  2. redistributes profits globally.
  3. redistributes profits within region.
  4. repatriates profits to home country.
  5. retains profits in host country.

Answer: C

Feedback: A company with an ethnocentric predisposition allows the values and interests of the parent company to guide strategic decisions. A firm with an ethnocentric orientation repatriates profits to home country.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 1 Easy

Topic: The Strategy for Managing across Cultures

 

  1. Which of the following predispositions is most likely to have a top-down governance?
  2. Regiocentric predisposition
  3. Polycentric predisposition
  4. Ethnocentric predisposition
  5. Geocentric predisposition

Answer: C

Feedback: Ethnocentric predisposition is most likely to have a top-down governance.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 1 Easy

Topic: The Strategy for Managing across Cultures

 

  1. Advertising in _____ is predominantly emotional, dramatic, and symbolic.
  2. Japan
  3. China
  4. Germany
  5. France

Answer: D

Feedback: The French avoid reasoning or logic. Their advertising is predominantly emotional, dramatic, and symbolic.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 2 Medium

Topic: The Strategy for Managing across Cultures

 

  1. Which of the following countries prefers advertising that is factual and rational?
  2. India
  3. China
  4. Germany
  5. France

Answer: C

Feedback: Germans want advertising that is factual and rational; they fear being manipulated by “the hidden persuader.”

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 1 Easy

Topic: The Strategy for Managing across Cultures

 

  1. The typical broad, self-deprecating _____ commercial amuses by mocking both the advertiser and consumer.
  2. British
  3. Chinese
  4. Japanese
  5. French

Answer: A

Feedback: The British value laughter above all else. The typical broad, self-deprecating British commercial amuses by mocking both the advertiser and consumer.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 1 Easy

Topic: The Strategy for Managing across Cultures

 

  1. In _____, spots are viewed as cultural events and reviewed as if they were literature or films.
  2. India
  3. China
  4. Germany
  5. France

Answer: D

Feedback: In France, spots are viewed as cultural events—art for the sake of money—and are reviewed as if they were literature or films.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 1 Easy

Topic: The Strategy for Managing across Cultures

 

  1. Which of the following is a characteristic of a high-context culture?
  2. Deep personal involvement with others is not valued greatly.
  3. Individuals are taught from a very early age to say exactly what they mean.
  4. Insiders and outsiders are not readily distinguishable.
  5. Agreements tend to be spoken rather than written.

Answer: D

Feedback: In a high-context culture, agreements tend to be spoken rather than written. Malaysia has what could be called a high-context culture.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 2 Medium

Topic: Cross-Cultural Differences and Similarities

 

  1. Which of the following is a characteristic of low-context cultures?
  2. Authority is diffused throughout the bureaucratic system.
  3. Insiders and outsiders are easily distinguishable.
  4. Relationships between people are relatively long lasting.
  5. People in authority are personally responsible for the actions of their subordinates.

Answer: A

Feedback: In low-context cultures, authority is diffused throughout the bureaucratic system. Personal responsibility is hard to pin down.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 2 Medium

Topic: Cross-Cultural Differences and Similarities

 

  1. Identify an accurate statement about the link between cultural clusters and compensation strategies.
  2. In high-masculinity cultures, high salaries should be paid to senior-level managers.
  3. In Pacific Rim countries, incentive plans should be individual-based.
  4. In countries that have a high individualism index, profit-sharing plans are highly effective.
  5. In Great Britain, managers value collectivism.

Answer: A

Feedback: In the context of the link between cultural clusters and compensation strategies high salaries should be paid to senior-level managers in high-masculinity cultures. Japan, Hong Kong, Malaysia, the Philippines, and Singapore have high-masculinity cultures.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 2 Medium

Topic: Cross-Cultural Differences and Similarities

 

  1. _____ is the tendency to view the world through one’s own eyes and perspectives.
  2. Parochialism
  3. Symbolism
  4. Nationalism
  5. Simplification

Answer: A

Feedback: Parochialism is the tendency to view the world through one’s own eyes and perspectives.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 1 Easy

Topic: Cross-Cultural Differences and Similarities

 

  1. In the context of human resource management (HRM) practices, unlike Americans, Japanese _____.
  2. tend to favor specialized training
  3. hire people based on what they can do for a firm in the short run
  4. use group performance appraisal
  5. view unions in an adversarial manner

Answer: C

Feedback: Unlike Americans, Japanese use group performance appraisal and reward people as a group. Traditionally, Americans use manager-subordinate performance appraisal and reward people as individuals.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 2 Medium

Topic: Cross-Cultural Differences and Similarities

 

  1. Which of the following is already being used by the Japanese and is currently being employed by the Americans?
  2. Manager-subordinate performance appraisal
  3. Cross-training and formal authority
  4. Hiring process designed to help identify individuals who will do the best job over the long run
  5. Participative management and autonomous work teams

Answer: D

Feedback: In the area of job design, the Japanese use a great deal of participative management and autonomous work teams. Also, the Americans are beginning to employ a similar approach.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 2 Medium

Topic: Cross-Cultural Differences and Similarities

 

  1. The way in which a manager working in the country of Batangonia interacts with a manager working in the country of Octavia is the same way in which he or she behaves when doing business with an executive working in the country of Cordia. This scenario exemplifies _____.
  2. simplification
  3. parochialism
  4. ethnocentrism
  5. symbolism

Answer: A

Feedback: The scenario exemplifies simplification. It is the process of exhibiting the same orientation toward different cultural groups.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 2 Medium

Topic: Cross-Cultural Differences and Similarities

 

  1. Malaysia has what could be called a _____.
  2. moderate-context culture
  3. low-context culture
  4. variable-context culture
  5. high-context culture

Answer: D

Feedback: Malaysia has what could be called a high-context culture.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 1 Easy

Topic: Cross-Cultural Differences and Similarities

 

  1. The United States has a _____.
  2. moderate-context culture
  3. low-context culture
  4. variable-context culture
  5. high-context culture

Answer: B

Feedback: The United States has a low-context culture.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 1 Easy

Topic: Cross-Cultural Differences and Similarities

 

  1. The five criteria in the acronym HAIRL stood for _____.
  2. helicopter, analysis, imagination, reality, and leadership
  3. hierarchy, awareness, ingenuity, reverie, and leadership
  4. helicopter, action, interest, reality, and leadership
  5. hierarchy, action, ingenuity, reverie, and leadership

Answer: A

Feedback: The five criteria in the HAIRL acronym stood for helicopter, analysis, imagination, reality, and leadership.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 1 Easy

Topic: Cross-Cultural Differences and Similarities

 

  1. Identify the country in which Shell’s operating company prioritized the HAIRL appraisal system by putting leadership at the top of the list and helicopter at the bottom.
  2. The Netherlands
  3. Germany
  4. France
  5. Britain

Answer: B

Feedback: The country in which Shell’s operating company prioritized the HAIRL appraisal system by putting leadership at the top of the list and helicopter at the bottom was Germany.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 2 Medium

Topic: Cross-Cultural Differences and Similarities

 

  1. In Great Britain, Ireland, and the United States, managers value their individualism and are motivated by all of the following opportunities except _____.
  2. earnings
  3. profit-sharing plans
  4. advancement
  5. recognition

Answer: B

Feedback: In Great Britain, Ireland, and the United States, managers value their individualism and are motivated by the opportunity for earnings, recognition, advancement, and challenge.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 2 Medium

Topic: Cross-Cultural Differences and Similarities

 

  1. A partially completed contingency matrix for international human resource management shows that recruitment and selection processes in Japan should_____.
  2. encourage use of sophisticated selection procedures based on recent public policy shifts
  3. use expatriates sparingly and recruit home country nationals at U.S. colleges
  4. obtain skilled labor from government subsidized apprenticeship program
  5. develop trusting relationship with recruit

Answer: D

Feedback: Recruitment and selection in Japanese firms often are designed to help identify those individuals who will do the best job over the long run. A partially completed contingency matrix for international human resource management shows that recruitment and selection in Japan prepare for the long process, ensure that the firm is “here to stay,” and develop trusting relationship with a recruit.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 2 Medium

Topic: Cross-Cultural Differences and Similarities

 

  1. A partially completed contingency matrix for international human resource management shows that recruitment and selection processes in Mexico should _____.
  2. encourage use of sophisticated selection procedures based on recent public policy shifts
  3. use expatriates sparingly and recruit home country nationals at U.S. colleges
  4. obtain skilled labor from government subsidized apprenticeship program
  5. prepare for a long process; ensure that your firm is “here to stay”; and develop trusting relationship with recruits

Answer: B

Feedback: A partially completed contingency matrix for international human resource management shows that recruitment and selection processes in Mexico use expatriates sparingly and recruit Mexican nationals at U.S. colleges.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 2 Medium

Topic: Cross-Cultural Differences and Similarities

 

  1. A partially completed contingency matrix for international human resource management for labor relations shows that firms doing business in China should _____.
  2. treat unions as partners and allow time for negotiations
  3. tap large pool of labor cities and be prepared that lax labor laws may become more stringent
  4. understand changing Chinese labor law and prepare for increasing unionization of labor
  5. be prepared for high wages and short workweek and expect high productivity from unionized workers

Answer: B

Feedback: A partially completed contingency matrix for international human resource management for labor relations shows that firms doing business in China should tap large pool of labor cities and be prepared that lax labor laws may become more stringent.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 2 Medium

Topic: Cross-Cultural Differences and Similarities

 

  1. A partially completed contingency matrix for international human resource management for labor relations shows that firms doing business in Germany should _____.
  2. treat unions as partners and allow time for negotiations.
  3. tap large pool of labor cities and be prepared that lax labor laws may become more stringent.
  4. be prepared for high wages and short workweek and expect high productivity from unionized workers.
  5. understand changing German labor law and prepare for increasing unionization of labor.

Answer: C

Feedback: A partially completed contingency matrix for international human resource management for labor relations shows that firms doing business in Germany should be prepared for high wages and short workweek and expect high productivity from unionized workers.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 2 Medium

Topic: Cross-Cultural Differences and Similarities

 

  1. A partially completed contingency matrix for international human resource management for compensation shows that firms doing business in China should _____.
  2. use technical training as reward, recognize egalitarian values, and use “more work more pay” with caution
  3. consider all aspects of labor costs
  4. note high labor costs for manufacturing
  5. use recognition and praise as motivator and avoid pay for performance

Answer: A

Feedback: A partially completed contingency matrix for international human resource management for compensation shows that firms doing business in China should use technical training as reward, recognize egalitarian values, and use “more work more pay” with caution.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 2 Medium

Topic: Cross-Cultural Differences and Similarities

 

  1. If businesspeople in ______ commit themselves to a date in the future and fail to show up, they may feel no guilt or concern because they believe they have no control over time in the first place.
  2. Great Britain
  3. Arab countries
  4. France
  5. China

Answer: B

Feedback: If Arabs commit themselves to a date in the future and fail to show up, they feel no guilt or concern because they believe they have no control over time in the first place. Arabs believe that Allah controls time.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. Which of the following statements is true about French workers?
  2. They are known to have an intense work ethic.
  3. They have a reputation for high productivity.
  4. They are willing to sacrifice their leisure time.
  5. They derive motivation from professional accomplishment.

Answer: B

Feedback: French workers have a reputation for high productivity. Also, they work extremely hard in their regularly scheduled time.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 2 Medium

Topic: Cultural Differences in Selected Countries and Regions

 

  1. Which of the following is critical to doing business in India?
  2. Shaking hands while greeting
  3. Communicating in local languages
  4. Adopting local dress codes
  5. Understanding Indian values and beliefs

Answer: D

Feedback: Understanding Indian values and beliefs is critical to doing business in India. Although most Indian businesspeople speak English, many of their values and beliefs are markedly different from those in the West.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 2 Medium

Topic: Cultural Differences in Selected Countries and Regions

 

  1. The People’s Republic of China had a long tradition of isolation until Deng Xiaoping opened his country to the world in _____.
  2. 1947
  3. 1989
  4. 1932
  5. 1979

Answer: D

Feedback: The People’s Republic of China (PRC or China, for short) has had a long tradition of isolation. In 1979, Deng Xiaoping opened this country to the world.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. Experienced travelers report that the primary criterion for doing business in China is _____.
  2. a persuasive top management
  3. savvy marketing
  4. technical competence
  5. hard currency

Answer: C

Feedback: Experienced executives report that the primary criterion for doing business in China is technical competence.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. An important dimension of Chinese culture is guanxi, which means _____.
  2. technical competence
  3. good connections
  4. punctuality
  5. business partnership

Answer: B

Feedback: An important dimension of Chinese culture is guanxi, which means “good connections.”

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. In practice, guanxi resembles _____.
  2. nepotism
  3. individualism
  4. commercialism
  5. parochialism

Answer: A

Feedback: In practice, guanxi resembles nepotism, where individuals in authority make decisions on the basis of family ties or social connections rather than objective indices.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. Statistics show that on average, _____ workers have the longest vacations in the world, four to five weeks annually.
  2. Indian
  3. French
  4. Chinese
  5. Arabian

Answer: B

Feedback: Statistics show that on average, French workers have the longest vacations in the world, four to five weeks annually. They often are accused of not having as intense a work ethic as, for example, Americans or Asians, and many French workers frown on overtime.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. Guanxi is an important dimension of the _____ culture.
  2. Arabian
  3. Russian
  4. Brazilian
  5. Chinese

Answer: D

Feedback: Guanxi is an important dimension of the Chinese culture. It means “good connections.”

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. Which of the following cultures is characterized by a universal method of greeting an equal by pressing one’s palms together in front of the chest and saying, “namaste”?
  2. The Russian culture
  3. The Indian culture
  4. The Arabian culture
  5. The Brazilian culture

Answer: B

Feedback: The Indian culture is characterized by a universal method of greeting an equal by pressing one’s palms together in front of the chest and saying, “namaste.” This means “greetings to you.”

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. In which of the following cultures punctuality is a strong suit?
  2. The Chinese culture
  3. The Brazilian culture
  4. The Arabian culture
  5. The Indian culture

Answer: A

Feedback: Chinese culture tends to value punctuality, so it is important that those who do business with them arrive on time. The issue of time is a major cultural difference between China and many Western countries.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. In the context of Arab countries, what is meant by the expression Bukra insha Allah?
  2. Time is money
  3. Tomorrow if God wills
  4. Good connections
  5. Greetings to you

Answer: B

Feedback: In Arab countries, a favorite expression is Bukra insha Allah, which means “Tomorrow if God wills.” This expression explains the fatalistic approach to time common to many Arab cultures.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. Many in the United States believe that it is more difficult to get along with the _____ than with other Europeans.
  2. Germans
  3. Austrians
  4. Spanish
  5. French

Answer: D

Feedback: Many in the United States believe that it is more difficult to get along with the French than with other Europeans.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. In _____, one’s social class is very important and these classes include the aristocracy, the upper bourgeoisie, the upper-middle bourgeoisie, the middle, the lower middle, and the lower.
  2. India
  3. Great Britain
  4. France
  5. The United States

Answer: C

Feedback: In France, one’s social class is very important, and these classes include the aristocracy, the upper bourgeoisie, the upper-middle bourgeoisie, the middle, the lower middle, and the lower.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. Which of the following cultural characteristics should be kept in mind when doing business in Arab countries?
  2. Mutual respect is required at all times.
  3. It is necessary to bring an expensive gift for Arab businesspeople.
  4. Destiny depends on the behavior of individuals.
  5. Social status is largely determined by accomplishments.

Answer: A

Feedback: When doing business in Arab countries, one should keep in mind that mutual respect is required at all times. It is important never to criticize or berate anyone publicly; this causes the individual to lose face, and the same is true for the person who makes these comments.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 2 Medium

Topic: Cultural Differences in Selected Countries and Regions

 

  1. Most French organizations tend to be _____.
  2. highly centralized and have rigid structures
  3. highly decentralized and have lose structures
  4. highly centralized and have lose structures
  5. highly decentralized and have rigid structures

Answer: A

Feedback: Most French organizations tend to be highly centralized and have rigid structures.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 1 Easy

Topic: Cultural Differences in Selected Countries and Regions

 

  1. Which of the following cultural characteristics should be kept in mind when conducting business in Russia?
  2. Building personal relationships with partners is important.
  3. Giving gifts to those with whom one wants to transact business is regarded as bribery.
  4. Russian expatriates score high on business practices.
  5. Businesspeople should try and settle business deals quickly.

Answer: A

Feedback: When conducting business in Russia, it is important to build personal relationships with partners. Business laws and contracts do not mean as much in Russia as they do in the West.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 2 Medium

Topic: Cultural Differences in Selected Countries and Regions

 

 

Essay Questions

 

  1. Describe the four different strategic dispositions.

Answer: Most MNCs have a cultural strategic predisposition toward doing things in a particular way. Four distinct predispositions have been identified: ethnocentric, polycentric, regiocentric, and geocentric.

A company with an ethnocentric predisposition allows the values and interests of the parent company to guide strategic decisions. Firms with a polycentric predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates. A regiocentric predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis. A company with a geocentric predisposition tries to integrate a global systems approach to decision making.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-01 EXAMINE the strategic dispositions that characterize responses to different cultures.

Level of Difficulty: 2 Medium

Topic: The Strategy for Managing across Cultures

 

  1. List the characteristics of a high-context culture.

Answer: A high-context culture possesses characteristics such as: (1) Relationships between people are relatively long lasting, and individuals feel deep personal involvement with each other; (2) Communication often is implicit, and individuals are taught from an early age to interpret these messages accurately; (3) People in authority are personally responsible for the actions of their subordinates, and this places a premium on loyalty to both superiors and subordinates; (4) Agreements tend to be spoken rather than written; and (5) Insiders and outsiders are easily distinguishable, and outsiders typically do not gain entrance to the inner group.

AACSB: Analytic

Bloom’s: Remember

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 2 Medium

Topic: Cross-Cultural Differences and Similarities

 

  1. Drawing on the work of Hofstede, describe how it is possible to link cultural clusters and compensation strategies.

Answer: Drawing on the work of Hofstede, it is possible to link cultural clusters and compensation strategies. Each cluster requires a different approach to formulating an effective compensation strategy: (1) In Pacific Rim countries, incentive plans should be group-based. In high-masculinity cultures (Japan, Hong Kong, Malaysia, the Philippines, Singapore), high salaries should be paid to senior-level managers; (2) In EU nations such as France, Spain, Italy, and Belgium, compensation strategies should be similar. In the latter two nations, however, significantly higher salaries should be paid to local senior-level managers because of the high masculinity index. In Portugal and Greece, both of which have a low individualism index, profit-sharing plans would be more effective than individual incentive plans, while in Denmark, the Netherlands, and Germany, personal-incentive plans would be highly useful because of the high individualism in these cultures; and (3) In Great Britain, Ireland, and the United States, managers value their individualism and are motivated by the opportunity for earnings, recognition, advancement, and challenge. Compensation plans should reflect these needs.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-02 DISCUSS cross-cultural differences and similarities.

Level of Difficulty: 2 Medium

Topic: Cross-Cultural Differences and Similarities

 

  1. Discuss the general cultural characteristics of Brazil?

Answer: Brazil was originally colonized by Portugal and remained affiliated with its parent country until 1865. Even though today Brazil is extremely multicultural, the country still demonstrates many attributes derived from its Portuguese heritage, including its official language. Brazilian businesspeople tend to have a relaxed work ethic, often respecting those who inherit wealth and have strong familial roots over those seeking entrepreneurial opportunities. They view time in a very relaxed manner, so punctuality is not a strong suit in this country. Overall, the people are very good-natured and tend to avoid confrontation, yet they seek out risky endeavors.

In Brazil, physical contact is acceptable as a form of communication. Additionally, face-to-face interaction is preferred as a way to communicate, so avoid simply e-mailing or calling. Appearance can be very important to Brazilian culture, as it will reflect both you and your company. When conducting business, men should wear conservative dark suits, shirts, and ties. Women should dress nicely but avoid too conservative or formal attire. Patience is key when managing business in Brazil. Expressing frustration or impatience and attempting to speed up procedures may lose the deal. Presentations should be informative and expressive, and consistency is important. It is common for Brazilian businesspeople to bring a lot of people to attend negotiations, mostly to observe and learn. Subsequent meetings may include members of higher management, requiring a rehashing of information.

AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 2 Medium

Topic: Cultural Differences in Selected Countries and Regions

 

  1. Discuss the cultural highlights to be kept in mind when doing business in Arab countries.

Answer: Europeans and Americans often find it extremely hard to do business in Arab countries, and a number of Arab cultural characteristics can be cited for this difficulty. One is the Arab view of time. In Arab countries, a favorite expression is Bukra insha Allah, which means “Tomorrow if God wills,” an expression that explains the fatalistic approach to time common to many Arab cultures. As a result, if Arab businesspeople commit themselves to a date in the future and fail to show up, they may feel no guilt or concern because they believe they have no control over time in the first place. When conducting business in an Arab country, it is important to understand that culture generally holds that destiny depends more on the will of a supreme being than on the behavior of individuals. Social status is largely determined by family position and connections, not necessarily by accomplishments. Initial meetings typically are used to get to know the other party. Business-related discussions may not occur until the third or fourth meeting. It is not necessary to bring the other party a gift. If this is done, however, it should be a modest gift. Also, Arab businesspeople tend to attach a great deal of importance to status and rank. When meeting with them, one should pay deference to the senior person first. It also is important never to criticize or berate anyone publicly. Mutual respect is required at all times. AACSB: Analytic

Bloom’s: Understand

Learning Objective: 05-03 REVIEW cultural differences in select countries and regions, and note some of the important strategic guidelines for doing business in each.

Level of Difficulty: 2 Medium

Topic: Cultural Differences in Selected Countries and Regions

There are no reviews yet.

Add a review

Be the first to review “International Management Culture Strategy and Behavior 10th Edition by Luthans – Test Bank”

Your email address will not be published. Required fields are marked *

Category:
Updating…
  • No products in the cart.