Ch.5 – Complete Test Bank – Culture, Management Style, and

International Marketing, 18e (Cateora)

Chapter 5 Culture, Management Style, and Business Systems

1) Adaptation requires business executives to forsake their ways and change to local customs.

2) Kyle recently transferred to Norway and is working with Britt on a marketing idea, but their different approaches have created a quandary. If Kyle doesn't understand Britt's customs, he is more likely to evaluate Britt's behavior by relying on what is familiar to her.

3) Electives are business customs to which adaptation is helpful but not necessary.

4) In order to be successful, a business should recognize and accommodate any cultural imperatives associated with a foreign entity.

5) The majority of business customs fit into the cultural elective category.

6) The "master of destiny" philosophy is based on the idea that individuals are not in control of their own futures but are at the mercy of decisions made by business and government.

7) The acceptance of the independent enterprise as an instrument of social action is a fundamental concept of U.S. corporations.

8) The notion that competition is crucial for efficiency, improvement, and regeneration is fundamental to Western management practices.

9) High Power Distance Index countries are more egalitarian than low Power Distance Index countries.

10) The three typical decision-making patterns are top-level management decisions, decentralized decisions, and committee or group decisions.

11) Family-run businesses are more likely to follow the pattern of top-level management decision making.

12) In the committee decision setup, every committee member must be convinced of the merits of the proposition or product in question.

13) Workers in countries higher in individualism and lower in power distance show more commitment to their companies than workers in countries with lower individualism and higher power distance.

14) High-context cultures place great importance on the verbal aspects of communication.

15) Businesspeople in low-context cultures use e-mail more often than those in high-context cultures.

16) Most North Americans operate on monochronic time.

17) Polychronic time is characterized by "a great involvement with people."

18) Being direct and wanting to get to the point are characteristics of a business person who operates in polychronic time.

19) Currently in most international businesses, women represent a small percentage of the employees who are chosen for an international assignment.

20) The business community's defense against payoffs was that they were a way of life throughout the world.

21) The distinction between bribery and extortion depends on whether the activity resulted from an offer or from a demand for payment.

22) Subornation payments accompany requests for a person to do a job more rapidly or more efficiently.

23) The form of bribery known as lubrication is common in some countries and involves giving a small sum of cash or a gift to a low-ranking public official.

24) Utilitarian ethics is the ethical principle that focuses on the optimization of the "common good."

25) When comparing performance of American, German, and Japanese firms, in less individualistic cultures, labor and management generally do not get along.

26) A distinguishing characteristic of the type of capitalism common in Chinese culture is the emphasis on guanxi as the coordinating principle among firms.

27) Chinese cultures are high on Power Distance Index and low on Individualism/Collective Index.

28) High-context cultures score high on power distance and low on individualism.

29) The most managerially useful aspect of the synthesis of cultural differences is that it allows us to make predictions about unfamiliar cultures.

30) Japan is considered a relationship-oriented culture because it achieves efficiency through competition and is linguistically direct.

31) What is a criterion for adaptation when dealing with individuals, firms, or authorities in foreign countries?

A) ability to resist varying tempos

B) zero tolerance

C) hypersensitivity

D) flexibility

E) lack of curiosity

32) Marilee understands that if she wants her U.S.-based company to flourish in Italy, she must be tolerant of Italian customs and norms that might differ from what she deals with in the United States and also be humble and not assume that her current way of doing business is the only way to do business. What characteristic is Marilee demonstrating?

A) adaptation

B) dissonance

C) distancing

D) concession

E) empathy

33) What are the three categories of business customs?

A) rigid, flexible, and negotiables

B) internals, externals, and consensual customs

C) imperatives, electives, and exclusives

D) national, foreign, and international

E) unilateral, bilateral, and multilateral

34) Reggie owns a small stationery company in Tennessee and plans to enter the French market to sell his line of fine linen papers. He realizes that there are many business customs he will need to understand and conform to in order to succeed in France. What type of business custom is Reggie concerned with?

A) cultural exclusives

B) business truism

C) global protocols

D) business axioms

E) cultural imperatives

35) Business customs that must be recognized and accommodated are called

A) imperatives.

B) electives.

C) exclusives.

D) exceptional.

E) constraints.

36) Jenna does not drink alcohol and when she meets clients for dinner she knows that while the client might enjoy a glass of wine with the meal, she is not required to. What type of business custom does this illustrate?

A) imperatives

B) electives

C) exclusives

D) individualistic axioms

E) standardized axioms

37) Business customs in which an outsider must not participate are called

A) imperatives.

B) electives.

C) exclusives.

D) absolutes.

E) statutes.

38) ________ would most likely be characterized as being an imperative business custom in many cultures.

A) Establishing friendships

B) Knowing to speak and write the native language

C) Adhering to local food habits

D) Conforming to the native religions

E) Having knowledge of the local sport

39) Manuel Tores, a senior manager at Crawford Export Logistics, goes to France to negotiate a deal with the company's French partners. He dresses casually in a t-shirt and jeans. His French counterparts call off the meeting and accuse him of taking a casual attitude toward negotiations. In this scenario, dressing formally during business meetings is probably a cultural ________ for the French.

A) imperative

B) elective

C) exclusive

D) oddity

E) rarity

40) Nina McRidder became an embarrassment to her company when she joked about the ruling monarchy in England in front of a group of visiting English businesspeople. She should have known that political ridicule by a foreigner is rarely accepted. Ms. McRidder has violated what is known as a cultural

A) imperative.

B) elective.

C) exclusive.

D) intelligence.

E) standard.

41) While bowing to another person is a ritual among the Japanese, it is not expected for a Westerner to bow or to understand this ritual. In other words, bowing would be considered a cultural

A) elective.

B) stereotype.

C) imperative.

D) rest.

E) exclusive.

42) The management team selected Sarah to attend the meeting with the new foreign-based company because she demonstrates tolerance, can easily adjust to changes in work tempos, and always promotes justice and fairness. Sarah has the qualities necessary for

A) dissonance.

B) ethnocentrism.

C) dominance.

D) adaptation.

E) stereotyping.

43) Which philosophical view of U.S. management recognizes that people influence the future to a large extent and that they control their own fates?

A) independent enterprise as the instrument of social action

B) wide sharing in decision making

C) "master of destiny" viewpoint

D) natural selection theory

E) competition producing efficiency

44) According to the "master of destiny" viewpoint, what is one thing that determines a person's destiny?

A) luck

B) society

C) hard work

D) family background

E) a higher order, such as God

45) Which of the following is consistent with the American view of the independent enterprise?

A) A corporation should fall under the control of the state government.

B) A corporation is an entity that has rules and continuity of existence.

C) The largest proportion of a corporation's profits must go to the personal funds of the stakeholders.

D) A corporation's employees must be selected on the basis of seniority and not merit.

E) Personal relationships are more important in daily life than work and the company.

46) In many companies in the United States, people feel that individuals control their own destinies and because of this companies should select and reward employees based on

A) merit.

B) efficiency.

C) payment.

D) nepotism.

E) family background.

47) Adam Smith in his The Wealth of Nations stated, "By pursuing his own interest he frequently promotes that of the society more effectually than when he really intended to promote it." What behavior does this notion attempt to justify?

A) collectivism

B) loyalty

C) welfare mentality

D) competitiveness

E) cooperation

48) The notion that ________ is crucial for efficiency, improvement, and regeneration is fundamental to Western management practices.

A) insolvency

B) procrastination

C) liquidation

D) competition

E) complacency

49) The Jensen family has owned Jensen's Country Furnishings since 1987 and Delores and Frank Jensen, grandparents and founders, make all of the business decisions. What type of decision-making pattern does this reflect?

A) committee

B) diffused management

C) decentralized management

D) nonhierarchical

E) top-level management

50) As businesses grow and professional management develops, there is a shift toward what form of decision making?

A) authoritarian decision making

B) decentralized management decision making

C) hit-or-miss decision making

D) tentative decision making

E) experimental decision making

51) A characteristic of committee decision making is that

A) it is only found in small businesses.

B) the committees always operate on a decentralized basis.

C) it is based on rank and hierarchy.

D) it is rarely employed in Asian countries.

E) it is by group or consensus.

52) Which form of business decision making is predominant in most Asian countries?

A) independent decision making

B) contractual decision making

C) authoritarian decision making

D) group decision making

E) dictatorial decision making

53) In ________ decision making, title or position generally takes precedence over the individual holding the job.

A) committee

B) decentralized

C) top-level management

D) integrated

E) dictatorial

54) Companies in the more hierarchical countries of France and Italy tend to have strong paternalistic orientations, which means that

A) it is assumed a person will work for one company during their lifetime.

B) all employees are family members or close family friends.

C) decisions are made from the top-down.

D) they are monopolies without any competition.

E) they are more heavily influenced by the government.

55) In his study on the personal lives of professionals, David McClelland found that in ancient Greece work was considered

A) more important than family and home.

B) a necessary component to having a happy personal life.

C) equal to and just as important as having a fulfilling personal life.

D) an undesirable factor that got in the way of a good personal life.

E) the ultimate reward.

56) Research has shown that commitment of workers to their companies tended to be higher in countries

A) higher in individualism and lower in power distance.

B) higher in collectivism and lower in individualism.

C) lower in individualism and higher in power distance.

D) higher in power distance and higher in individualism.

E) higher in collectivism and higher in power distance.

57) According to Max Weber, at least part of the standard of living in the United States today can be attributed to the

A) hard-working Protestant ethic.

B) creators of the Constitution.

C) Pearl harbor bombing.

D) African American population.

E) slave labor that formed the basis for early industry.

58) Which form of communication is more important in a low-context culture?

A) explicit

B) nonverbal

C) contextual

D) face-to-face

E) gesture-based

59) According to the high-context/low-context continuum identified by Edward T. Hall, communication in a low-context culture depends on

A) the context.

B) who says it.

C) when it is said.

D) how it is said.

E) the verbal expression.

60) Fredrick Keeble, an American manager, took his Swiss client out for a traditional American dinner. The client did not seem to eat much. After dinner, he asked his client if he had enjoyed the dinner. Which of the following responses would indicate that the client comes from a low-context culture?

A) No, I did not like the food.

B) Yes, but it was a little too oily.

C) No, dinner was good but I have an upset tummy.

D) Yes, it was lovely, thanks.

E) Yes, unfortunately I was not very hungry.

61) It is estimated that 78 percent of today's website content is written in English, yet not every person in the world can read or understand English. What solution does the text suggest to make website content more universal?

A) using minimal to no language on websites instead of using graphics and diagrams to convey messages

B) using language translation software to translate communication in all languages

C) having country-specific websites so that everyone can communicate in their own language

D) using foreign language blocking software to screen international communications

E) training employees to virally communicate in all languages used by foreign customers

62) France is higher on Hofstede's Power Distance Index (PDI) than the United States and formality is evident in French businesses. Which of the following American business practices would be most unacceptable to the French?

A) slipping in colloquial French words during business meetings

B) trying to emulate the French way of business thinking

C) showing enthusiasm at business negotiations

D) using first names in business encounters

E) exhibiting stubbornness while negotiating

63) ________ is probably the most common mistake of North Americans attempting to trade in the Middle East.

A) Accepting drinks when offered

B) Interacting informally

C) Acting hastily

D) Attempting to speak the local language

E) Dressing casually

64) A ________ time system typifies Western cultures like most North Americans, Swiss, Germans, and Scandinavians and causes them to concentrate on one thing at a time.

A) polychronic

B) bimodal

C) dual

D) monochronic

E) collectivistic

65) ________ time is more dominant in high-context cultures and provides time for relationships to build.

A) Polychronic

B) Exponential

C) Polynomial

D) Monochronic

E) Sequence

66) What is a characteristic of a polychronic time schedule?

A) looser standards of being on time

B) get straight to the point

C) more strict scheduling

D) concentrate on one thing at a time

E) promptness at all times

67) People in Brazil describe themselves as late arrivers, allow greater flexibility in defining early and late, are less concerned about being late, and are more likely to blame external factors for their delay. Which system of time do the Brazilian people most likely operate on?

A) polychronic

B) monochromatic

C) monotheismic

D) monochronic

E) sequence

68) When compared to people operating on P-time, people operating on M-time

A) follow looser time schedules.

B) are more deeply involved with individuals.

C) are not bound by deadlines and time schedules.

D) are more likely to blame external factors for their lateness.

E) tend to concentrate on one thing at a time.

69) The marketing orientation at KB Komponents is based on the belief that consumers and businesses alike will not buy enough without some prodding on the part of the company. Which marketing orientation does this demonstrate?

A) distribution

B) buying

C) production

D) time

E) selling

70) At Norton Manufacturing Corporation, it is believed that consumers want products that provide the best quality and have innovative features. Which marketing orientation does this company use?

A) direct orientation

B) product orientation

C) logistics orientation

D) production orientation

E) selling orientation

71) When considering the role of time in business, which of the following is true of P-time and M-time?

A) The American desire to get down to business is a manifestation of a P-time culture as contrary to Japan's M-time approach.

B) The M-time system gives rise to looser time schedules, unlike P-time.

C) M-time is characterized by the simultaneous occurrence of many things, unlike P-time.

D) As global markets expand, more businesspeople from P-time cultures are adapting to M-time.

E) Contrary to P-time businesspeople, interruptions are routine for M-time businesspeople.

72) Which of the following best explains the low percentage of women chosen for international assignments in the United States?

A) The role of women as homemakers and caregivers does not allow for international assignments.

B) Men are generally more interested to take up international assignments than women.

C) Prejudice faced by American women executives in foreign, male-dominated societies is exaggerated.

D) There is a widespread belief that traditional roles of women in male-dominated societies preclude women from being successful in these societies.

E) Expenses involved in sending an unmarried women executive abroad are far higher than the expenses incurred in sending a married man with family.

73) While most European countries are comparable to the United States in terms of the number of women in managerial positions, ________ stands out as the country that is drastically different with only 13 percent of management jobs held by women.

A) Italy

B) France

C) Germany

D) Britain

E) Switzerland

74) Kenneth is a bank executive and when one of his customers offers him box seats to a Chicago Cubs game he knows he cannot accept them because it is not appropriate to do so. However, in some countries of the world this gift would be perfectly acceptable. This reflects a difference in

A) intellectual property laws.

B) grants-in-aid.

C) tariff restrictions.

D) business ethics.

E) ethnocentrism.

75) Which organization conducts an international survey of businesspeople, political analysts, and the general public on corruption and compiles the Corruption Perception Index (CPI)?

A) Organization of American States (OAS).

B) Amnesty International.

C) Oxfam International.

D) Transparency International (TI).

E) CARE International.

76) What is true of the findings of Transparency International's Corruption Perception Index (CPI)?

A) lower levels of bribery have been found in nations with a communist past.

B) higher levels of bribery have been found in low-power distance nations.

C) higher levels of bribery have been found in low-income nations.

D) lower levels of bribery have been found in collectivistic cultures.

E) lower levels of bribery have been found in poor nations.

77) Marcus is the director of a small company in Boston. He is trying to obtain parts from a manufacturer in Taiwan but that company is unwilling to send them because of government regulations limiting exports on small orders. Marcus calls the head of the manufacturing company and says he will pay him an extra $5,000 if he ships them anyway. What practice is Marcus using to obtain the parts?

A) extortion

B) slander

C) barter

D) libel

E) bribery

78) Academic studies of the causes and consequences of bribery, conducted by Transparency International (TI), indicate corruption is greater in

A) high income nations.

B) democratic rather than communist nations.

C) countries with high individualism.

D) countries with low Power Distance Index.

E) collectivistic nations.

79) Which aspect of Japanese culture, predicted by many to favor bribery, makes Japan's success in reducing corruption more remarkable?

A) relationship-orientation

B) mechanistic inclination

C) patriarchal nature

D) information-orientation

E) task orientation

80) ________ occurs when payments are extracted under duress by someone in authority from a person seeking only what he or she is lawfully entitled to.

A) Extortion

B) Subordination

C) Lubrication

D) Perjury

E) Bribery

81) ________ involves a relatively small sum of cash, a gift, or a service that is intended to facilitate or expedite the normal, lawful performance of a duty by an official.

A) Extortion

B) Ransom

C) Lubrication

D) Shakedown

E) Exaction

82) The finance minister of a developing country demands a heavy payment for the approval of a multimillion dollar contract with a foreign company. This demand for the lump sum payment is called

A) extortion.

B) subornation.

C) lubrication.

D) larceny.

E) malfeasance.

83) ________ generally involves giving large sums of money—frequently not properly accounted for—designed to entice an official to commit an illegal act on behalf of the one offering the bribe.

A) Agent charges

B) Lubrication

C) Extortion

D) Subornation

E) Ransom

84) Kim is the director of operations at her company and hires an agent to obtain a license to build a warehouse in an industrial district. The agent gets caught offering a bribe to a government official for issue of the license. Which of the following describes Kim's liabilities?

A) The manager is not liable since the use of an agent absolves her of any responsibility.

B) The manager is liable since the agent used part of her fees for bribery, although the manager was unaware of the agent's intentions.

C) The manager is not liable if the agent can prove that extortion, rather than bribery, took place.

D) The manager is liable if she was aware of the fact that part of the agent's fee will be used as a bribe.

E) The manager is liable only if the act of building the warehouse at the given location is illegal.

85) Which ethical principle tries to optimize the "common good" or benefits of all constituencies?

A) secularism and philanthropy

B) rights of the parties

C) justice or fairness

D) utilitarian ethics

E) self-reference frame

86) Many companies are now practicing strategic philanthropy which means that they

A) make efforts to minimize harmful waste emissions.

B) hire returning veterans.

C) use their expertise or products to sponsor projects in the community.

D) only work with foreign corporations that meet EPA standards.

E) promote products that are made with only natural ingredients.

87) According to Lester Thurow, in the British–American "individualistic" kind of capitalism, relationships among government, management, and labor in business systems are

A) cooperative.

B) commensalistic.

C) synergistic.

D) adversarial.

E) conciliatory.

88) A culture that is low context, individualistic, has a low power distance, and uses monochronic time is

A) information-oriented.

B) relationship-oriented.

C) hierarchy-oriented.

D) an authoritarian culture.

E) a dictatorial culture.

89) A culture that is high context, has collectivism, has a high power distance, and uses polychronic time is

A) information-oriented.

B) relationship-oriented.

C) self-oriented.

D) power-oriented.

E) kinship-oriented.

90) Why is adaptation a necessary element when working with cultural differences? What are the basic criteria to deal with foreign firms?

91) Describe the three types of business customs that an international marketer must be aware of and provide examples of each.

92) Describe the "master of destiny" and "independent enterprise" philosophies and their role in U.S. management.

93) Discuss the three patterns of decision making that are typical in international business.

94) Distinguish between the two time systems in the world, as defined by Edward T. Hall.

95) Discuss how the self-reference criteria plays a role when negotiating with a foreign entity.

96) Why do U.S. multinational companies hesitate to offer women international assignments? Is this prejudice justified?

97) Discuss the difference between bribery and extortion and provide examples.

98) Compare an information-oriented culture like America with a relationship-oriented culture like Japan.