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Chapter 2 – The Cultural Environments Facing Business

Multiple Choice Questions

DEFINE CULTURE

1.      _______________ consists of specific learned norms based on attitudes, values, and beliefs, all of which exist in every nation.

a.     Culture

b.     Morals

c.     Self-efficacy

d.     Self-concepts

2.

23.    An example of a group membership that is usually ascribed would be one based on:

a.       nationality.

b.       religion.

c.       political party.

d.       profession.

24.    An example of an acquired group membership would most likely be one based on:

a.       nationality.

b.       age.

c.       gender

d.      religion.

38.    Cultures such as ones in Northern Europe are called _______________, preferring to work sequentially, such as finishing with one customer before dealing with another.

a.     polychronic

b.     neochronic

c.     monochronic

d.     hyperchronic

39.    _______________ cultures are more comfortable in working simultaneously with all the tasks at hand. For example, they feel uncomfortable when not dealing immediately with all customers who need service.

a.     Monochronic

b.     Neochronic

c.     Hyperchronic

d.             Polychronic

49.    In _____________ organizations, control is decentralized so that “our manager in Rio” is free to conduct business in what the manager  thinks is “the Brazilian way.”

a.     polycentric 

b.     ethnocentric

c.     geocentric

d.     regiocentric

50.   

57.    What are the advantages and shortcomings of using the nation as a proxy for culture?

Answer

The nation provides a workable definition of a culture for international business because basic similarity among people is both a cause and an effect of national boundaries.  The laws governing business operations also apply primarily along national lines. Within the bounds of a nation are people who share essential attributes, such as values, language, and race. However, these shared attributes do not mean that everyone in a country is alike, nor do they suggest that each country is unique in all respects. 

58.   

60.    In a short essay, explain the difference between ascribed and acquired group memberships, and give examples of each.

         Answer

         Every culture values some people higher than others, and this dictates a person’s class or status within that culture.  A person’s ranking is partly determined by individual factors and partly by the person’s affiliation or membership in given groups. Affiliations determined by birth—known as ascribed group memberships—include those based on gender, family, age, caste, and ethnic, racial, or national origin.  Affiliations not determined by birth are called acquired group memberships and include those based on religion, political affiliations, and professional and other associations.

61.   

65.    In a short essay, describe the two cultures and discuss the difference between the two.

         Answer

a.     Low-context cultures – Refers to when most people consider relevant only firsthand information that bears directly on the decision they need to make. In business, they spend little time on “small talk.”

b.     High-context cultures – Refers to when people consider peripheral information valuable to decision making.

c.     When managers from the two types of cultures deal with each other, the low-context individuals may believe the high-context ones are inefficient and time-wasters. The high-context individuals may believe the low-context ones are too aggressive to be trusted.

66.    In a short essay, contrast monochromic versus polychromic cultures.

Answer

Information processing is universal in that all cultures categorize, plan, and quantify.  All cultures also have ordering and classifying systems.  Information processing also includes ordering tasks.  Cultures such as in Northern Europe are called monochromic, preferring to work sequentially, such as finishing with one customer before dealing with another.  Conversely, polychromic Southern Europeans are more comfortable working simultaneously with all the tasks they face.

67.   

70.    In a short essay, discuss culture shock and the sequence of events that takes place during this event.

         Answer

         Culture shock is the frustration from experiencing a new culture and having to learn and cope with a vast array of new cultural cues and expectations. People working in a very different culture may pass through stages. First, like tourists, they are elated with “quaint” differences. Later, they may feel depressed and confused—the culture shock phase—and their usefulness in a foreign assignment may be greatly impaired. Fortunately for most people, culture shock begins to ebb after a month or two as optimism grows and satisfaction improves.

71.

73.    What are the disadvantages of excessive ethnocentrism and excessive polycentrism?

         Answer

         A country that is too polycentric may shy away from certain countries or may avoid transferring home-country practices or resources that may, in fact, work well abroad. Polycentricism may lead to such extensive delegation of decision making or such extensive imitation of proven host-country practices that the company loses it innovative superiority. Furthermore, the company may lose overall control as managers within each country foster local rather than worldwide objectives.

         Excessive ethnocentrism may cause costly business failures if a manager believes his or her own culture is superior to others and is not willing to adapt regardless of the situation.