Final practice IN

As a manager of a company in Rosarito, Mexico, you need your workers to work every day in December to meet productivity goals. However, the union representatives inform you that workers will not attend work on December 12th and 13th due to Catholic celebrations. You try to offer more money, but the workers refuse, preferring to spend time with their families and uphold their traditions. What key element of culture is in conflict in this example?

• Behaviors and Institutions

• Leadership styles

• Values, beliefs, and norms

• Conflict resolution styles

Answer explanation

The conflict in this situation arises due to a difference in values, beliefs, and norms. The workers value their religious traditions and family time, which conflicts with the manager's goal of meeting productivity targets. The workers prioritize their cultural and family values over monetary incentives, highlighting the importance of understanding and respecting these values in intercultural negotiation.

You will start a new job in Indonesia, and your boss is Chinese. What kind of approach to his leadership will work best according to Erin Meyer's Model?

• Respecting hierarchies, following instructions, and letting him make important decisions

• Communicating in an informal manner, as peers so he can see you're as professional as he is.

• Making decisions as fast as possible and just keeping him informed of your activities after you've done them.

• Speaking in all the meetings and constantly intervening in the meetings to raise your voice and be noticed.

Answer explanation

According to Erin Meyer's Model, Chinese culture tends to have high power distance and high context communication. Therefore, respecting hierarchies, following instructions, and letting your Chinese boss make important decisions will likely be the most effective approach. This approach demonstrates your understanding and respect for the cultural norms associated with leadership in Chinese culture

"I am joining a new company in a foreign country. I read up on the history of the country I am discovering and familiarize myself with the local customs. A few weeks after my settling down, I realize that despite my understanding of the national culture, I am at a complete loss when it comes to figuring out how my colleagues work." What have I missed?

• I have underestimated the importance of the particular corporate culture and the professional cultures of my colleagues, beneath the national one.

• Actually, it does not matter to try and understand others.

• I should have read more about this country's culture.

• This nation's culture is actually impossible to understand.

Answer explanation

In this case, the person has missed the importance of understanding the specific corporate culture and the professional cultures of their colleagues. National culture is only one aspect of the cultural context, and it is crucial to recognize that corporate and professional cultures can vary significantly within a country. By understanding and adapting to these additional layers of culture, one can more effectively navigate the workplace and build better relationships with colleagues

 In 2012, LDJC Associates, a Mexican-owned company, attempted to enter the American market by building relationships with Republican local authorities in El Paso, Texas, to secure public works contracts. However, once the Republican Mayor won the election, he terminated all contracts with foreign companies for public works due to the surge of nationalism within the party, even though he personally disagreed with the view. Which model would help me understand better the problem in this case?

• Cultural Intelligence

• Erin Meyer's Model

• Hofstede's 6 cultural dimensions

• Culture in a 2-party negotiation model

Answer explanation

The Culture in a 2-party negotiation model is the most appropriate for understanding this situation because it focuses on the interests, positions, and needs of the two parties involved in the negotiation (LDJC Associates and the Republican local authorities). This model takes into account the internal dynamics within each party, as well as the external factors that influence their decision-making process, such as political pressures and party affiliations.

An American marketing executive is working on a campaign for a Brazilian client. She notices that her Brazilian counterparts tend to be more focused on enjoying life, having fun, and appreciating personal freedom. They frequently discuss plans for the upcoming Carnival and emphasize the importance of leisure time. Which dimension of Hofstede's model is most relevant in this scenario?

• Power Distance

• Individualism

• Masculinity

• Indulgence

Answer explanation

The correct answer is Indulgence, which refers to the degree to which a society allows for the gratification of desires and enjoyment of life. In this scenario, the Brazilian colleagues place a strong emphasis on leisure time, fun, and personal freedom, which are characteristics of a culture with high indulgence. Understanding this dimension can help the American executive better navigate her interactions with her Brazilian counterparts and adapt her marketing strategies accordingly.

A Canadian investor finds it challenging to work in Mexico due to the extensive paperwork required, bureaucratic processes, and the reluctance of local partners to take risks despite the potential for high ROI. How is Mexican culture characterized according to Hofstede?

• Feminine

• Low Power Distance

• High Uncertainty Avoidance

• Restraint

Answer explanation

According to Hofstede's cultural dimensions, Mexican culture exhibits high Uncertainty Avoidance. This dimension refers to the degree to which a society feels threatened by uncertain or unknown situations and tries to minimize risks. In this case, the Mexican partners' reluctance to take risks, insistence on extensive documentation, and strict adherence to bureaucratic processes reflect their preference for avoiding uncertainty. Understanding this aspect of Mexican culture can help the Canadian investor navigate these challenges more effectively.

I am passionate about living in Japan and doing business there. I have spent years studying the language and have become practically fluent, in addition to being well-versed in Japanese history and traditions. I have also developed various market strategies that might work in different scenarios. However, I struggle to build networks because every time I am in front of a Japanese decision-maker, I get nervous and revert to my own cultural behavior, preventing me from connecting with my counterpart. What kind of cultural intelligence do I still need to develop?

• Knowledge

• Action

• Strategy

• Drive

Answer explanation

In this situation, the cultural intelligence component that still needs to be developed is Action. Being knowledgeable about Japanese culture and language is essential, but the ability to adapt one's behavior to the local cultural context when interacting with Japanese decision-makers is crucial for building networks and connections. Developing the Action component of cultural intelligence will help bridge the gap between understanding and effectively engaging in the Japanese business environment.

After analyzing the dairy market in Ireland, I realize that entering this market might be complicated, difficult, and with a low ROI because it is controlled by a single large buyer (a monopsony), which will be a disadvantage in any negotiation. What factor of the immediate context am I referring to in this example?

• Political and legal pluralism

• Immediate stakeholders

• Culture

• Relative bargaining power

Answer explanation

In this example, the factor of the immediate context being referred to is the Relative bargaining power. The presence of a monopsony in the Irish dairy market gives the single large buyer significant power in negotiations, making it difficult for new entrants to compete and negotiate favorable terms. Understanding the dynamics of relative bargaining power is crucial when assessing the feasibility of entering a market and developing negotiation strategies.

In the early 2000s, a generation of new politicians arrived in the ruling party in India. They were called "technocrats" because they had studied in American and European universities and were convinced of the benefits of globalization. It made it easier for foreign investors to enter the Indian market and encouraged India to engage in more international trade negotiations. What factor of the environmental context are we referring to in this example?

• Instability

• Ideology

• Relative bargaining power

• Desired outcome

Answer explanation

In this example, the factor of the environmental context being referred to is Ideology. The new generation of politicians, known as "technocrats," brought in a different set of beliefs and values, which shaped their policy decisions and opened the door for increased foreign investment and international trade. Understanding the role of ideology in shaping the environmental context is important for anticipating changes in market opportunities and negotiation dynamics.

When negotiating with a tech company in Israel, a US female executive is advised to dress modestly and avoid initiating physical contact during greetings to respect local cultural norms. What kind of cultural response are the Israeli negotiators using?

• Adapt to the Other Negotiator's Approach

• Coordinate Adjustment

• Induce the Other Negotiator to Use Your Approach

• Embrace the Other Negotiator's Approach

Answer explanation

In this scenario, the Israeli negotiators are using the "Adapt to the Other Negotiator's Approach" cultural response. They expect the US female executive to adapt her behavior and dress code to respect local cultural norms and be more effective in the negotiation process.