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Cultures where it is possible to begin making business deals only after social relationships are established are referred to as ________ cultures.


A) ethnocentric
B) high-context
C) xenocentric
D) polychronic
E) popular

F) A) and D)
G) A) and E)

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People with cultural intelligence:


A) are flexible in dealing with cultural differences.
B) are uncomfortable with cultural differences.
C) view one's culture as superior to that of others.
D) view one's culture as inferior to that of others.
E) are eager to adopt the values of foreign cultures.

F) A) and E)
G) A) and D)

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Most communication in low-context cultures takes place via the written or spoken word.

A) True
B) False

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________ involves illegal practices to further one's business interests.


A) Corruption
B) Ethnocentrism
C) Polycentrism
D) Proxemics
E) Ecological fallacy

F) A) and B)
G) A) and C)

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Home-country criticisms of global firms include complaints about:


A) interference with the local government.
B) hiring the most talented local personnel at a high cost.
C) failure to transfer advanced technologies.
D) sending capital investments abroad.
E) poor working conditions.

F) B) and E)
G) B) and C)

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Sam,an American national,was sent to India as part of a cultural exchange program in his university.On his arrival in India,he did not respond to his host who greeted him by folding his hands.He also declined the tea that was offered,emphasizing a cultural preference for coffee.Sam displayed ________.


A) polycentrism
B) idealism
C) ethnocentrism
D) feudalism
E) collectivism

F) D) and E)
G) C) and E)

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When Zest Inc.,a pharmaceuticals company,bought the rights of manufacturing and selling Bayman Pharma's vitamin supplement Vita Plus in Cuba,Zest engaged in ________.


A) exporting
B) global sourcing
C) foreign direct investment
D) insourcing
E) licensing

F) A) and E)
G) A) and D)

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Which of the following is a focus of cultural tightness-looseness?


A) The tolerance that exists for any deviations from norms
B) The superiority of home country values
C) The first interaction with a new culture and the anxieties associated with it
D) The time when a new culture becomes the subject of one's criticism
E) The ability to interpret the real message from what is being said

F) B) and C)
G) A) and E)

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Which of the following terms is used to describe local job creation that results from foreign direct investment?


A) Restructuring
B) Franchising
C) Offshoring
D) Insourcing
E) Horizontal integration

F) C) and D)
G) All of the above

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Executives of transnationals view the entire world as their domain for acquiring resources.

A) True
B) False

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Which of the following is true about members of polychronic cultures?


A) They are known to be punctual without exception.
B) They are generally reluctant to accomplish many different things at once.
C) They are flexible toward time.
D) They regard time as the primary focus of business.
E) They prefer following a pre-determined sequence for accomplishing a given task at a given time.

F) B) and D)
G) A) and E)

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The goal of most tariffs is to:


A) improve present working conditions.
B) protect transnational corporations from political risks.
C) diversify existing jobs.
D) protect local firms from foreign competition.
E) create jobs for foreign workers.

F) B) and E)
G) C) and E)

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People in high-power-distance cultures tend to be tolerant of power and are prone to follow orders.

A) True
B) False

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Which of the following is true about culture?


A) Culture is a set of legal codes.
B) Culture occupies a position of peripheral importance in international business.
C) Culture is not common to a group.
D) Culture remains static over time.
E) Cultural miscues can be costly in international business.

F) A) and B)
G) A) and C)

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Barbara shocked all her friends when she arrived at the party wearing a silk kimono,a traditional Japanese outfit.The reaction of her friends is an example of culture shock.

A) True
B) False

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________ has the highest masculinity score in Hofstede's research.


A) Malaysia
B) Japan
C) India
D) France
E) Germany

F) D) and E)
G) B) and C)

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In ________ cultures,what is actually said or written may convey only part,and sometimes a very small part,of the real message.


A) low-context
B) monochronic
C) polychronic
D) popular
E) high-context

F) C) and E)
G) C) and D)

Correct Answer

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A foreign subsidiary is a foreign operation completely owned and controlled by a local firm.

A) True
B) False

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Sigma Inc.conducts for-profit transactions of goods and services across national boundaries.Sigma Inc.is an example of an international business.

A) True
B) False

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Which of the following is true about loose cultures?


A) A high degree of conformity to social norms is present
B) Tolerance for deviation is absent
C) The goal is to fit in
D) Social norms are narrow and unambiguous
E) Non-criminal deviations from norms tend to be tolerated

F) A) and E)
G) D) and E)

Correct Answer

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