44 CHAPTER 2 The Cultural Environments Facing Business Multiple Choice Questions ST !" Q EST#$% &' !

e(ine culture an) cultural membership. &* +++++ consists o( speci(ic learne) norms ,ase) on attitu)es- values- an) ,elie(s o( a group o( people* a* Ethnolog. ,* Civili/ation c* Culture 0)e(inition- page 412 )* !octrine Culture ma. ,e )e(ine) as +++++* a* the learne) norms ,ase) on attitu)es- values- an) ,elie(s o( a group o( people 0)e(inition- page 412 ,* the geneticall. )etermine) norms o( a group o( people c* the ,ehavior that separates the upper class (rom those ,elo3 it )* leisure time activit. as oppose) to 3or4 activit. Cultural mem,ership +++++* a* is ,ase) onl. on nationalit. or ethnic ,ac4groun) ,* is usuall. multiple ,ecause people ,elong to )i((erent groups ,ase)- (or e6ample- on nationalit. an) pro(ession 0interpretation- page 412 c* re(ers to mem,ership in organi/ations such as ,oo4 clu,s that promote cultural improvement )* is ascri,e) rather than ac7uire) Because people ,elong to )i((erent groups ,ase)- (or e6ample- on nationalit.- ethnicit.- religion- gen)er- 3or4 organi/ationpro(ession- age- political part.- an) income level- +++++* a* each in)ivi)ual8s mem,ership is uni7ue ,* the stu). o( national cultures can tell us little a,out e6pecte) ,ehaviors c* i)entit. crises ma4e lives chaotic )* people have more than one cultural mem,ership 0interpretation- page 412

2*

5*

4*

ST !" Q EST#$% 2' 9h. is cultural a3areness important in international ,usiness: 9hat are metho)s an) pro,lems in ,uil)ing cultural a3areness: ;* A ma<or pro,lem 3hen cultures colli)e in international ,usiness occurs 3hen +++++* a* a compan.8s emplo.ees encounter )istress ,ecause o( an ina,ilit. to accept or a)<ust to (oreign ,ehaviors 0interpretationpage 412 ,* emplo.ees )isagree on the st.le o( art (or )ecorating the o((ice c* local people have no e6pectation that (oreigners shoul) a)<ust to their culture )* companies un)erstan) an) a)<ust to the national cultures in 3hich the. )o ,usiness #n attempting to ,uil) cultural a3areness- one can sa. that +++++* a* researching )escriptions o( a culture o((ers the most accurate assessment ,* ,usiness people can improve their a3areness an) sensitivit. 0interpretation- page ;>2 c* ,usinesspeople are e6pecte) to memori/e all the cultural variations (or the countr. 3ith 3hich the. are 3or4ing )* all people seem to have the same innate a,ilit. to )o an) sa. the right thing or not in another culture Researchers have (airl. recentl. conclu)e) milestone stu)ies to )etermine national norms in attitu)es an) pre(erences on a large num,er o( issues that concern ,usiness managers* Businesspeople shoul)- nevertheless- ,e cautious in ho3 the. use this in(ormation ,ecause +++++* a* the stu)ies 3ere con)ucte) unscienti(icall.* ,* changes in attitu)es an) pre(erences ten) to occur ver. rapi)l. c* a)ults 3ere the onl. people surve.e)- thus the stu)ies )i) not consi)er the opinions o( the ne3 generation )* responses are reporte) in averages an) ,usinesspeople can overloo4 variations 3ithin countries 0interpretation- page ;>2 All o( the (ollo3ing are pro,lems o( ,uil)ing national cultural a3areness e6cept +++++*

=*

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a* ,* c* )*

man. pu,lishe) )escriptions present un3arrante) stereot.pes or an assessment o( onl. a segment o( a population cultures evolve- thus stu)ies an) )escriptions ma. ,e out)ate) s.stematic comparative stu)ies have covere) onl. highAincome countries 0interpretation- page ;>2 the 3a. people respon) to 7uestions a,out attitu)es an) pre(erences ma.- themselves- ,e a((ecte) ,. culture

ST !" Q EST#$% 5' 9hat are the a)vantages an) shortcomings o( using the nation as a pro6. (or a culture: 1* The nation state o((ers a 3or4a,le re(erence (or stu).ing cultural )i((erences ,ecause +++++* a* a nation state contains onl. one )istinct culture ,* similarit. among people is ,oth a cause an) e((ect o( national ,oun)aries 0interpretation- page ;&2 c* the commonalit. o( language 3ithin a nation state eases the process o( con)ucting surve.s )* )i((erent groups 3ithin the same countr. al3a.s have more in common 3ith each other than 3ith groups in other countries

&>* A pro,lem o( using the nation state as a re(erence or pro6. (or a societ. is that +++++* a* nation states (ail to me)iate the )i((erent interests 3ithin their ,oun)aries ,* sel(Astereot.pes ten) to (all along national lines c* such an approach ten)s to ,e pol.centric )* variations ma. ,e great 3ithin a countr. 0interpretation- page ;&2 &&* The nation state o((ers a 3or4a,le re(erence (or stu).ing cultural )i((erences ,ecause +++++* a* the la3s governing ,usiness operations appl. primaril. along national lines 0interpretation- page ;&2 ,* a nation state contains onl. one )istinct culture c* the commonalit. o( language 3ithin a nation state eases the process o( con)ucting surve.s )* )i((erent groups 3ithin the same countr. al3a.s have more in common 3ith each other than 3ith groups in other countries &2* The nation state legitimi/es itsel( ,. +++++* a* )isallo3ing su,cultures that transcen) national ,oun)aries ,* accomo)ating )iversit. o( cultural mem,erships an) me)iating their )i((erent interests 0interpretation- page ;&2 c* privati/ing the preservation o( national sites )* restricting (oreign travel o( its citi/ens ST !" Q EST#$% 4' 9hat (eatures in(luence cultural sta,ilit. an) cultural change: &5* Most people8s ,asic value s.stem is +++++* a* in,orn ,* change) in a)ulthoo) through imposition c* a((ecte) primaril. ,. teenage peer pressure )* (airl. (irml. in place at a .oung age 0interpretation- page ;22

4;

&4* +++++ ten)s to sta,ili/e a cultureB +++++ ten)s to create cultural change* a* %ormativismB relativism ,* HighApo3er )istanceB lo3Apo3er )istance c* #solationB contact 0interpretation- page ;22 )* %atural selectionB changes in gene (re7uenc. &;* Creolization or indigenization re(ers to +++++* a* government e((orts to maintain a separate cultural i)entit. ,* the process o( a))ing elements o( an outsi)e culture 0)e(inition- page ;52 c* the use o( stereot.pes to )escri,e a culture )* changes in the gene pool &=* #n 3hich o( the (ollo3ing situations 3oul) culture sprea) more easil. ,et3een countr. A an) countr. B: a* People (rom A an) B spea4 )i((erent languages* ,* People (rom A an) B spea4 the same language* 0interpretation- page ;42 c* Both A an) B lac4 signi(icant ethnic su,cultures* )* Both A an) B have several signi(icant su,cultures* ST !" Q EST#$% ;' 9hat are ma<or 3a.s that societies ran4 people: 9hat social strati(ication s.stems e6ist: 9h. is an un)erstan)ing important in international ,usiness: &?* #nternational ,usinesspersons nee) to un)erstan) social strati(ication s.stems 3here the. )o ,usiness ,ecause +++++* a* the. re(lect the 3illingness o( the local societ. to accept pro)uct innovations the international compan. 3oul) li4e to intro)uce ,* the. re(lect 3ho people in a societ. 3ill respect more 0interpretation- page ;@2 c* the high similarit. among countries is in)icative that companies can ,e e((ective ,. using uni(orm hiring an) promotion practices glo,all. )* 3hat is an ascri,e) group mem,ership in one countr. is an ac7uire) one in another &@* Among the ascri,e) group mem,erships is +++++* a* national origin 0interpretation- page ;@2 ,* political a((iliation c* religion )* pro(ession &1* #nternationall.- ho3 )oes per(ormance capa,ilit. 0competence2 a((ect the acceptance o( people (or <o,s an) promotion: a* Competence is generall. more important (or hiring than (or promotion* ,* Competence is more important in (amil.Ao3ne) companies* c* %ational norms )i((er* 0interpretation- page ;@2 )* nless M%Es hire an) promote a,roa) on the ,asis o( competence- the. meet resistance to the intro)uction o( ne3 management practices* 2>* $l) age is +++++* a* a ,arrier in the 3or4place regar)less o( occupation ,* consi)ere) to ,e a)vantageous in clim,ing the corporate la))er in the nite) States c* a greater ,arrier to emplo.ment than gen)er universall. )* positive (or organi/ational a)vancement in some societies ,ecause the. e7uate age 3ith 3is)om 0interpretation- page ;12 ST !" Q EST#$% =' !escri,e the ma<or theories that e6plain 3h. 3or4 motivation ma. )i((er (rom one countr. to another* 2&* Maslo38s nee) hierarch. an) 9e,er8s Protestant ethic theories are e6amples o( +++++* a* 3or4 motivation theories 0interpretation- pages =>- =22 ,* ,u.er ,ehavior mo)els c* religious e6planations o( cultural )i((usion )* )ualA)evelopment theories 22* Accor)ing to the theor. o( success an) re3ar) e6pectation- 3hich o( the (ollo3ing shoul) result in the greatest enthusiasm (or 3or4: Re3ar)s (rom success 4=

Success li4elihoo) a* high ,* high c* lo3 )* lo3

relative to (ailure high lo3 high 0interpretation- page =&2 lo3

25* #n appl.ing the hierarch. o( nee)s theor.- one shoul) e6pect lo3erAor)er nee)s to ,e a ,etter motivator in +++++* a* 3ealth. countries ,* collectivist countries c* countries 3ith conservative religious ,elie(s )* poor countries 0interpretation- page =22 24* There is a strong correlation ,et3een the intensit. o( religious ,elie( 0regar)less o( 3hether one is Protestant- CatholicCe3ish- Bu))hist- Hin)u- or Muslim2 an) +++++* a* the )esire to ta4e pro)uctivit. gains in the (orm o( more income rather than leisure ,* attri,utes that lea) to economic gro3th- such as o,e.ing la3s an) ,eing thri(t. 0interpretation- pages =>D=&2 c* high collectivism rather than in)ivi)ualism )* the )egree o( ethnocentrism ST !" Q EST#$% ?' !escri,e the relationship pre(erences e6plaine) ,. po3er )istance an) in)ivi)ualism versus collectivism* 2;* Attri,utes o( +++++ are lo3 )epen)ence on the organi/ation an) are a )esire (or personal time- (ree)om- an) challenge* a* collectivism ,* )emocrac. c* in)ivi)ualism 0interpretation- page =42 )* anarch. 2=* #n societies 3ith lo3 po3er )istance- most emplo.ees pre(er a management st.le that +++++* a* is autocratic ,* is paternalistic c* permits nepotism )* is consultative 0interpretation- page =52 2?* Sa(e 3or4 environments motivate +++++B challenges motivate +++++* a* in)ivi)ualistsB collectivists ,* collectivistsB in)ivi)ualists 0interpretation- page =42 c* non(atalistsB (atalists )* communistsB )emocrats 2@* People generall. pre(er little consultation ,et3een superiors an) su,or)inates 3here +++++* a* po3er )istance is high 0interpretation- page =52 ,* (atalism is high c* collectivism is high )* masculinit. is high ST !" Q EST#$% @' 9hat cultural (actors help to e6plain ris4Ata4ing ,ehavior: Ho3 )o )i((erences a((ect ,usiness: 21* #( emplo.ees pre(er set rules that are not to ,e ,ro4en even i( ,rea4ing them is sometimes in the compan.8s ,est interesttheir pre(erence is e6plaine) ,. high +++++* a* (emininit. ,* (atalism c* collectivism )* uncertaint. avoi)ance 0interpretation- page =42 5>* #n societies 3here trust is high- +++++* a* people are naEve ,* there ten)s to ,e a lo3er cost o( )oing ,usiness 0interpretation- page =;2 c* people ten) to ,e (atalistic )* (amil. ,usinesses are )ominant 4?

5&* #n societies 3here people are more 3illing to 3or4 har) an) to ,lame an) re3ar) themselves (or outcomes- the societies are characteri/e) ,. a ,elie( in +++++* a* sel(A)etermination 0interpretation- page =;2 ,* (atalism c* in)ivi)ualism as oppose) to collectivism )* lo3 po3er )istance as oppose) to high po3er )istance 52* Companies ma. ,e a,le to ,etter motivate 3or4ers through )ela.e) compensation- such as retirement programs- in a societ. characteri/e) ,. +++++* a* lo3 uncertaint. avoi)ance ,* high trust c* high (uture orientation 0interpretation- page =;2 )* high sel(A)etermination ST !" Q EST#$% 1' E6plain the concepts o( lo3Aconte6t versus highAconte6t cultures- monochronic versus pol.chronic cultures- an) i)ealistic versus pragmatist cultures* 55* A societ. characteri/e) ,. consi)ering relevant onl. (irsthan) in(ormation that ,ears )irectl. on the )ecision the. nee) to ma4e is a0n2 +++++ culture* a* monochronic ,* pragmatist c* i)ealist )* lo3Aconte6t 0)e(inition- page ==2 54* A societ. characteri/e) ,. pro,lemAsolving that (irst settles principles rather than speci(ic )eman)s is a0n2 +++++ culture* a* i)ealist 0)e(inition- page ==2 ,* pol.chronic c* highAconte6t )* pragmatist 5;* A societ. characteri/e) ,. pre(erring to (inish one tas4 ,e(ore starting another is a0n2 +++++ culture* a* lo3Aconte6t ,* monochromic 0)e(inition- page ==2 c* pragmatist )* high po3erA)istance 5=* The attempt to resolve small issues ,e(ore principles is an e6ample o( +++++* a* relativism ,* monochromic ,ehavior c* pragmatism 0interpretation- page ==2 )* uncertaint. avoi)ance ST !" Q EST#$% &>' 9hat pro,lems occur 3hen moving either (rom one language to another or (rom one countr. to another that share the same o((icial language: 9hat are suggestions to )eal 3ith these pro,lems: 5?* All o( the (ollo3ing are international ,usiness translation pro,lems e6cept +++++* a* some countries man)ate that all )ocuments coming (rom a,roa) remain onl. in their original language- thus people 3ithin those countries ma. not (ull. un)erstan) them 0interpretation- page =?2 ,* ,ecause languages an) the common meaning o( 3or)s are constantl. evolving- the inten)e) meaning o( a 3or) ma. ,e )i((erent (rom 3hat the listener or rea)er un)erstan)s c* some 3or)s in one language simpl. )on8t have a )irect translation into another language )* 3or)s mean )i((erent things in )i((erent conte6ts- thus the 3rong conte6t ma. ,e translate) 5@* The term silent language re(ers to +++++* a* metho)s use) to communicate 3ith hearingAimpaire) people ,* messages communicate) through such means as color- )istance- time- an) ,o). movements 0)e(inition- page =@2 c* )i((erent local conte6ts (or the same 3or)s- such as summer meaning )i((erent months in )i((erent countries )* 3ritten as oppose) to oral communications 4@

51* 9hen a compan. )oes ,usiness in another countr. 3hose o((icial language is the same as in its home countr.- +++++* a* it can assume that communications 3ill go smoothl. ,* it shoul) use ,ac4Atranslation on 3ritten )ocuments c* it ma. encounter )i((erences in meanings o( the same 3or)s 0interpretation- page =@2 )* it can assume that although some spellings are )i((erent that 3or)s 3ill mean the same thing 4>* 9hen ,usinesspeople communicate 3ith people 3hose language is )i((erent (rom theirs- the. shoul) +++++* a* tell a <o4e to put ever.one at ease ,* use slang to create an am,iance o( in(ormalit. c* use long 3or)s to impress counterparts a,out their intelligence )* ,u)get e6tra time (or translation an) clari(ication 0interpretation- page =?2 ST !" Q EST#$% &&' 9hat in(luences ho3 much a)<ustment companies an) managers must ma4e 3hen operating in )i((erent cultures: 4&* #n spite o( cultural )i((erences- people 3or4ing a,roa) are o(ten a,le to )o ,usiness success(ull. 3hile still retaining their o3n cultural ha,its ,ecause +++++* a* other cultures have al3a.s a)mire) (oreign values ,* host countr. nationals are a3are o( )i((erences an) are 3illing to tolerate them (rom (oreigners 0interpretation- page ?>2 c* the ,usiness 3orl) has ,ecome culturall. homogeneous )* host countr. nationals en<o. the humor o( ri)iculing these )i((erences privatel. 42* The term cultural distance re(ers to +++++* a* the normal space ,et3een people in a societ. 3hen communicating ,* the time it ta4es people to a)<ust to a )i((erent culture c* the )egree that countries8 cultures are similar- usuall. ,ecause the. share attri,utes such as language an) religion 0)e(inition- page ?&2 )* the pre(erre) relationship ,et3een superiors an) su,or)inates in a given culture 45* 9hen the cultural )istance is ver. close ,et3een t3o countries- +++++* a* communications ,et3een them nee) not ,e translate) ,* the population in each countr. 3elcomes investments (rom the other more rea)il. than investments (rom culturall. )istant countries c* the gen)erA,ase) roles an) ,ehaviors are ver. similar in each )* a compan. ma. ,e lulle) into complacenc. that overloo4s important su,tleties 0interpretation- page ?22 44* The (rustration people encounter 3hen having to learn an) cope 3ith a vast arra. a ne3 cultural cues an) e6pectations is +++++* a* culture shoc4 0)e(inition- page ?22 ,* pol.centrism c* cultural )istance )* highAconte6t culture ST !" Q EST#$% &2' 9hat are ethnocentrism- pol.centrism- an) geocentrism- an) 3hat are the pro,lems an)For a)vantages o( each: 4;* Ethnocentrism in international ,usiness re(ers to the +++++* a* stu). o( group ethics ,* comparison o( the Protestant ethic 3ith other religious vie3s c* ,elie( that 3hat 3or4s ,est at home shoul) 3or4 ,est ever.3here 0)e(inition- page ?42 )* stu). o( ethnic groups 3ithin countries 4=* The process ,. 3hich a compan. ,ases (oreign operations on an in(orme) 4no3le)ge o( its organi/ational culture along 3ith homeA an) hostAcountr. nee)s- capa,ilities- an) constraints is +++++* a* pol.centrism ,* ,estApractices management c* sel(A)etermination )* geocentrism 0)e(inition- page ?;2 4?* $ne o( the potential pro,lems (or an M%E that practices too much pol.centrism is +++++* 41

a* ,* c* )*

)uplication o( e((orts 0interpretation- page ?42 in)i((erence to cultural )i((erences )i((icult. o( hiring local personnel 3ho 3ant to ,e up3ar)l. mo,ile e6cessive )epen)ence on homeAcountr. control

4@* A potential pro,lem o( pol.centrism in international ,usiness is +++++* a* location o( operations in areas o( rapi)l. rising costs ,* (ailure to intro)uce innovative superiorit. 0interpretation- page ?42 c* lac4 o( cooperation among ethnic groups 3ithin a countr.8s operations )* the )eparture o( emplo.ees to set up their o3n ,usinesses ST !" Q EST#$% &5' 9hat (actors shoul) companies consi)er in or)er to minimi/e resistance to changes the. might intro)uce in (oreign societies: 41* 9hen a compan. 3ishes to intro)uce change in a (oreign countr.- its li4elihoo) o( success can ,e improve) ,. +++++* a* intro)ucing man. changes simultaneousl. ,* consi)ering 3ellAtime) changes an) the support o( opinion lea)ers interpretation- page ?=2 c* agreeing to ma4e some homeAcountr. changes in return )* in(orming local people that it 3oul) not ,e there i( it )i) not 4no3 3hat 3as ,est ;>* Attempts to organi/e 3or4 )i((erentl. to improve pro)uctivit. 3ill li4el. (ail +++++* a* i( the 3or4 (orce has a lo3 tolerance (or authoritarianism ,* unless 3or4ers are compensate) 3ith ,onuses c* unless the changes are compati,le 3ith 3hat competitors are alrea). )oing )* i( changes inter(ere 3ith strongl. hel) values 0interpretation- page ?;2 ;&* An M%E ma. promote participation in the )ecision on 3hether an) ho3 to ma4e organi/ational changes* Such participation +++++* a* can ,e critical in countries 3ith ,oth high an) lo3 levels o( emplo.ee e)ucation 0interpretation- page ?=2 ,* 3or4a,le onl. 3hen the 3or4 (orce has a goo) e)ucational ,ac4groun) c* is (easi,le onl. i( po3er )istance an) uncertaint. avoi)ance are lo3 )* 3or4s ,est 3hen the M%E is ethnocentric ;2* Participation in )ecisionAma4ing an) support o( opinion lea)ers are +++++* a* re7uirements (or all international ,usiness un)erta4ings* ,* )istinguishing characteristics o( 9estern ,usiness practices c* strategies (or (irms to consi)er 3hen intro)ucing change in their (oreign operations 0interpretation- page ?=2 )* )ecreasingl. important (or international ,usiness success ST !" Q EST#$% &4' 9hat are the ma<or scenarios a,out the (uture o( national cultures: Ho3 )oes cultural imperialism (it into these scenarios: ;5* The gro3th o( people 3ith )ual citi/enship an) people 3ho maintain close contact 3ith their original countries o( citi/enship even though living a,roa) is evi)ence that national cultures in the (uture 3ill +++++* a* ,e su,<ect more to cultural imperialism ,* strengthen to maintain their separate i)entities c* cause ,or)ers to change to accommo)ate separate cultures )* )evelop into ne3 h.,ri)s that accept an) trans(er culture ,oth in an) out o( national ,oun)aries 0interpretation- page ??2 ;4* The e6ample o( a Capanese tourist listening to a Filipino group sing a *S* song in a British hotel chain in #n)onesia is evi)ence that +++++* a* ne3 h.,ri) cultures are )eveloping 0interpretation- page ??2 ,* people8s ,asic values are changing c* national regulations are attempting to slo3 the process o( cultural evolvement )* cultural change is negative (or the ,est interest o( smaller- poorer countries ;;* *S* companies largel. control the international entertainment me)ia- 3hich largel. portra.s glamorous an) appealing* This situation is use) to support the argument that +++++* a* ne3 h.,ri) cultures are )eveloping *S* pro)ucts an) li(est.les as

;>

,* c* )*

although- visi,le e6pressions o( culture are ,ecoming homogeni/e)- ,asic )i((erences in societal values are remaining strong cultures are ,ecoming more (ragmente) the portra.al causes cultural imperialism in the peripher. 0smaller- poorer2 countries 0interpretation- page ?52

;=* American ham,urgers- Capanese sushi- #talian pi//a- Me6ican tacos- an) Mi))le Eastern pita ,rea) are no3 commonl. (oun) in most countries* This occurrence is use) to support the argument that +++++* a* although- visi,le e6pressions o( culture are ,ecoming homogeni/e)- ,asic )i((erences in societal values are remaining strong ,* ne3 h.,ri) cultures are )eveloping 0interpretation- page ??2 c* cultural imperialism is ta4ing place )* glo,ali/ation is helping to (ul(ill lo3er or)er nee)s in Maslo38s hierarch.

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