Emphasizing Institutions, Cultures, and Ethics Quiz-4

The Foreign Corrupt Practices Act (FCPA) bans:

• bribery to American officials by companies based in other countries.

• bribery to foreign officials by companies based in the United States.

• bribery to all officials everywhere by companies based anywhere.

• bribery to foreign officials by companies based overseas.

The norms, principles and standards of conduct that govern behavior:

• are an important part of national culture but not organizational culture.

• are private matters and not issues for formal institutions.

• have a substantial overlap with what is illegal.

• are expressed by institutions in a written code of conduct.

Which tends to be true of masculine cultures?

• Managers rely more on rules and procedures.

• Managers rely more on experience and training.

• Stereotypical manager is decisive.

• Stereotypical manager is accustomed to seeking consensus.

Which of the following best defines institutions?

• Humanly devised constraints that structure human interaction

• Government-driven constraints that structure human interaction

• Governance of individual and firm behavior

• Formal establishment of rules to guide interaction

Managers who strive to show respect for institutional context:

• can ignore codes of conduct when outside the culture where they apply.

• can work to find guidelines that accommodate cultural differences.

• cannot accept gifts from business associates.

• cannot make exceptions to codes of conduct that ban bribery.

How does bounded rationality affect strategic decision making?

• Managers pursue their interests and make choices within the formal and informal constraints in a given institutional framework.

• Relying on informal connections as a strategy is only relevant for firms in emerging economies.

• Only with prior experience can managers of multinationals make rational strategy decisions.

• Bounded rationality has no effect on decision making.

Individualism is best defined as:

• the degree of social inequality existent in the person's attributes.

• the identity of a person not being based on the attributes of the person's collective

• the degree of independence a person has from the group.

• the level of personal achievement and success.

Which of the following is descriptive of ethical relativism?

• Ethical and unethical behaviors are universally agreed upon for the most part.

• Ethical standards vary significantly around the world.

• It contradicts the cliché “When in Rome, do as the Romans do.”

• Ethics is an instrument to impose the values of the elite on the masses.

Strategists who are sensitive to cultural differences in making strategic decisions will find that:

• a long-term orientation is always more helpful when it comes to strategy.

• they are almost guaranteed a higher level of success.

• it is not especially helpful in avoiding strategic blunders.

• they better understand business situations in other parts of the world.

When it comes to taking action, a savvy strategist should:

• follow the advice “when in Rome, do as the Romans do.”

• do “homework” to understand the formal and informal institutions that govern firm behavior.

• seek to share the values held by others of that country.

• focus on culture as the primary variable affecting global strategy.