Chapter 5: Global Management and Cultural Diversity

The reasons why businesses go international include gaining new markets, finding investment capital, and reducing ________________.

• Political risk

• Protectionism

• Labor Costs

• Most favored nation status

When shoe maker Rocky Brands decided to buy full ownership of a manufacturing company in the Dominican Republic, Rocky was engaging in which form of international business?

• Import/export

• Licensing

• Foreign subsidiary

• Joint Venture

A form of international business that falls into the category of a direct investment strategy is ______________________.

• Exporting

• Joint venture

• Licensing

• Global sourcing

Business complaints about copyright protection and intellectual property rights in some countries illustrate how differences in _______________ can impact international operations.

• Legal environments

• Political stability

• Sustainable developments

• Economic systems

In _____ cultures, members tend to do one thing at a time; in ____ cultures, members tend to do many things at once.

• Monochronic, polychronic

• Polycentric, geocentric

• Collectivist, individualist

• Neutral, affective

A culture that places great value on expressing meaning in the written or spoken word is described as _______ by Hall.

• Monochromic

• Proxemic

• Collectivist

• Low-context

It is common in Malaysian culture for people to value teamwork and to display great respect for authority. Hofstede would describe this culture as high in both ________________.

• Uncertainty avoidance and feminism

• Universalism and particularism

• Collectivism and power distance

• Long-term orientation and masculinity

In Hofstedes study of national cultures, America was found to be the most _________________ compared with other countries in his sample.

• Individualistic

• Collectivist

• Feminine

• Long-term oriented

It is ________ when a foreign visitor takes offense at a local custom such as dining with one's fingers, considering it inferior to practices of his or her own culture.

• Universalistic

• Prescriptive

• Monochromic

• Ethnocentric

When Limited Brands buys cotton in Egypt, Has tops sewn from it in Sri Lanka according to design made in Italy, and then offers the garments for sale in the United States, this form of international business is known as __________.

• Licensing

• Importing

• Joint Venture

• Global sourcing