Chapter 5: The Cultural Environment Exam Study Guide - Latest Updated 2024/2025, Exams of Business Economics

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TRUE/FALSE

1. Research studies find that culture is not learned; rather it is inherited.

ANS: F PTS: 1 DIF: Difficulty: Easy REF: p. 118 OBJ: LO: 05-01 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Knowledge

2. Verbal and non-verbal communication are the two primary types of language.

ANS: T PTS: 1 DIF: Difficulty: Easy REF: p. 118 OBJ: LO: 05-02 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Knowledge

3. The primary reason why language mistakes occur in global business is that organizations tend to use backward translation.

ANS: F PTS: 1 DIF: Difficulty: Moderate REF: p. 119 OBJ: LO: 05 - 02 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Analysis

4. In Kuwait, weekends are Monday and Tuesday, not Saturday and Sunday as they are in most Western nations.

ANS: F PTS: 1 DIF: Difficulty: Moderate REF: p. 120 OBJ: LO: 05-02 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Knowledge

5. In Arab countries, business executives will often digress from the primary purpose of the meeting, then eventually return to the topic initially discussed.

ANS: T PTS: 1 DIF: Difficulty: Moderate REF: p. 121 OBJ: LO: 05-02 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Comprehension

6. Mexican negotiators will frequently engage in long periods of silence, or may have peripheral discussions among one another while ignoring foreign business people in the room.

ANS: F PTS: 1 DIF: Difficulty: Challenging REF: p. 121 OBJ: LO: 05-02 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Comprehension

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ANS: F PTS: 1 DIF: Difficulty: Challenging

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REF: p. 128 OBJ: LO: 05-05 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Comprehension

14. Guanxi refers to the relationship between subordinates and superiors. It denotes friendship among unequals involving unlimited exchanges of favors; thus, it is not based upon sentiment.

ANS: T PTS: 1 DIF: Difficulty: Moderate REF: p. 129 OBJ: LO: 05-05 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Comprehension

15. Latin Americans are not as conscious about time as are North Americans.

ANS: T PTS: 1 DIF: Difficulty: Moderate REF: p. 131 OBJ: LO: 05 - 05 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Comprehension

MULTIPLE CHOICE

1. Which of the following statements about culture is NOT true? a. It is a concept that is relaively easy to define. b. There are many different components of culture. c. Culture involves how a group of people behave, what they value and appreciate, and many other aspects. d. There are four charecteristics of culture. e. Culture is learned, not inherited.

ANS: A PTS: 1 DIF: Difficulty: Moderate REF: p. 118 OBJ: LO: 05-01 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Analysis

2. Of the following, which is NOT a charcteristic of culture that is important for global companies to recognize? a. Culture is learned, not inherited. b. It is nearly impossible to change an entire country’s culture. c. It is the responsibility of the global firm to ascertain the level of importance of various aspects of culture in the foreign markets it serves. d. Companies’ operations, cheifly marketing and management, need to recognize and adjust to the cultural environment existing in the countries the global company serves. e. Culture can be imposed from home country to host country. ANS: E PTS: 1 DIF: Difficulty: Moderate REF: p. 118 OBJ: LO: 05-01 NAT: BUSPROG: Diversity

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3. Mexican business executives who buy business-to-business products from U.S. suppliers indicate that “knowledge of the mexican culture” and “enthusiasm” were the most important cutural variables determining from which supplier they purchased. this example of which of the four charecteristics of culture which is important for global companies to recognize? a. Culture is larned, not inherited. b. It is nearly impossible to change an entire county’s culture. c. It is the responsibility of the global firm to ascertain the level of importance of various aspects of culture in the foreign markets it serves. d. Companies’ operations, chiefly marketing and management, need to recognize and adjust to the cultural environment existing in the countries the global company serves. e. Culture is inherited, not learned.

ANS: C PTS: 1 DIF: Difficulty: Challenging REF: p. 118 OBJ: LO: 05-01 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Application

4. communication refers to tone of voice, gestures, eye contact, body positions, facial grimaces, and other body language that accompanies verbal communication. a. Verbal b. Nonverbal c. Informal d. Formal e. Backward

ANS: B PTS: 1 DIF: Difficulty: Easy REF: p. 118 OBJ: LO: 05 - 02 NAT: BUSPROG: Communication STA: DISC: Environmental Influence KEY: Bloom's: Knowledge

5. In translation, a message is translated from English to another language, then someone skilled in that foreign language translates it back into English; this second translation can then be compared to the original English version. a. vertical b. horizontal c. forward d. backward e. diagonal

ANS: D PTS: 1 DIF: Difficulty: Moderate REF: p. 119 OBJ: LO: 05-02 NAT: BUSPROG: Communication STA: DISC: Environmental Influence KEY: Bloom's: Knowledge

6. Of the following, which is NOT true reguarding religion as a cultural aspect? a. In Muslim countries, American companies cannot antcipate employing women because they are not encouraged to work outside the home.

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b. Different religions observe different holidays. c. Jews observe a number of annual holidays, including Purim, Passover, and

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meeting, then eventually return to the topic initially discussed. This is an example of a cultural. a. value

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b. attitude c. manners and customs d. stance e. outlook

ANS: C PTS: 1 DIF: Difficulty: Challenging REF: p. 121 OBJ: LO: 05-02 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Application

11. In China, consumers drink soup, which usually contains rice, and do not use a spoon. In Muslim countries, it would be inappropriate to bring a gift for another man’s wife. These are example of cultural _. a. value b. attitude c. manners and customs d. stance e. outlook

ANS: C PTS: 1 DIF: Difficulty: Challenging REF: p. 121 OBJ: LO: 05-02 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Application

12. infrastructure refers to housing, medical services, and educational institutions. a. Material b. Technological c. Social d. Financial e. Economic

ANS: C PTS: 1 DIF: Difficulty: Easy REF: p. 121 OBJ: LO: 05-02 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Knowledge

13. The color black in the United States indicates mourning, but in Japan white is the color of mourning. Green is an acceptable color in Muslim countries; all flags of those countries contain green. These are examples of which of the following? a. Material culture b. Aesthetics c. Social institutions d. Stratification e. Intangible culture

ANS: B PTS: 1 DIF: Difficulty: Challenging REF: p. 122 OBJ: LO: 05-02 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Application

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b. Aesthetics c. Social institution d. Stratification e. Intangible culture

ANS: C PTS: 1 DIF: Difficulty: Easy REF: p. 122 OBJ: LO: 05-02 NAT: BUSPROG: Diversity STA: DISC: Group Dynamics KEY: Bloom's: Knowledge

15. The extent to which groups at the top of the social pyramid exert control over others at the lower levers of the pyramid is referred to as. a. material culture b. aesthetics c. a social institution d. social stratification e. intangible culture

ANS: D PTS: 1 DIF: Difficulty: Easy REF: p. 122 OBJ: LO: 05-02 NAT: BUSPROG: Diversity STA: DISC: Group Dynamics KEY: Bloom's: Knowledge

16. Of the following, which is NOT a cultural level identified by Hofstede? a. Individualism vs. collectivism b. Power distance c. Masculine vs. feminine d. Uncertainty avoidance e. Internal control vs. external control

ANS: E PTS: 1 DIF: Difficulty: Moderate REF: p. 123 OBJ: LO: 05-03 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Analysis

17. Of the following, which dimension identified by Hofstede refers to the extent to which societies tolerate risk or are risk averse? a. Individualism vs. collectivism b. Power distance c. Masculine vs. feminine d. Uncertainty avoidance e. Internal control vs. external control

ANS: D PTS: 1 DIF: Difficulty: Easy REF: p. 123 OBJ: LO: 05-03 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Knowledge

18. Of the following, which dimension identified by Hofstede refers to the level of

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egalitarianism in a society? a. Individualism vs. collectivism b. Power distance

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b. Southern Asia c. Eastern Europe d. the Arabic group

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e. Latin Europe

ANS: A PTS: 1 DIF: Difficulty: Challenging REF: p. 124 OBJ: LO: 05-03 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Knowledge

23. Of the following, which is NOT a primary or secondary source that can be used to learn about foreign countries’ cultures? a. The U.S. Department of Commerce Commercial Guide b. The Economist’s Intelligence Unit c. Culture Grams d. Craigshead’s International Business, Travel and Relocation Guide to 84 Countries e. Forbes’s Countries of the World

ANS: E PTS: 1 DIF: Difficulty: Challenging REF: p. 127 OBJ: LO: 05-04 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Knowledge

24. Of the following, which provides cultural information for 133 countries? a. The U.S. Department of Commerce Commercial Guide b. The Economist’s Intelligence Unit c. Culture Grams d. Craigshead’s International Business, Travel and Relocation Guide to 84 Countries e. Forbes’s Countries of the World

ANS: A PTS: 1 DIF: Difficulty: Challenging REF: p. 127 OBJ: LO: 05-04 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Knowledge

25. Of the following, which is NOT a cultural aspect of doing business in Korea? a. The number 1 is good, whereas the number 4 signifies death. b. Business card etiquette is the most important aspect of closing the deal. c. Younger brothers and sisters are not allowed to use the names of their older siblings. d. “Yangban” refers to the noble class. e. Children are not supposed to say their parents’ names, even when used with a title.

ANS: B PTS: 1 DIF: Difficulty: Moderate REF: p. 128 OBJ: LO: 05-05 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Analysis

26. Of the following, which is NOT a cultural aspect of doing business in Korea? a. The number 1 is good, whereas the number 4 signifies death. b. Avoid sitting so that the sole of one’s shoe is shown. c. Younger brothers and sisters are not allowed to use the names of their older

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ANS: B PTS: 1 DIF: Difficulty: Moderate REF: p. 129 OBJ: LO: 05-05 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Analysis

27. refers to a Chinese philosophy examining the relationship between subordinates and supervisors. It denotes friendship among unequals involving unlimited exchanges of favors. a. Guanxi b. Inwa c. Yangban d. Stratification e. Aesthetics

ANS: A PTS: 1 DIF: Difficulty: Moderate REF: p. 129 OBJ: LO: 05-05 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Knowledge

28. In , teachers are so revered that walking in their shadows is viewed as impolite. a. Latin America b. Korea c. Russia d. Arab countries e. India

ANS: B PTS: 1 DIF: Difficulty: Moderate REF: p. 129 OBJ: LO: 05-05 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Knowledge

29. refers to a Korean philosophy stressing harmony among unequals, loyalty to parents and authority figures, and superiors being responsible for the well-being of subordinates. a. Guanxi b. Inwa c. Yangban d. Stratification e. Aesthetics

ANS: B PTS: 1 DIF: Difficulty: Easy REF: p. 129 OBJ: LO: 05-05 NAT: BUSPROG: Diversity STA: DISC: Environmental Influence KEY: Bloom's: Knowledge

30. When doing business in , it is important to understand that potential customers want to develop a personal relationship before doing business with foreign executives. Dinner exchanges and lunch meetings provide a good time for executives to get to know one another better. Dinners most often occur in the late evening, at 9 or 10pm. a. China

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b. Japan c. Korea d. Latin America