Chap 4 MindTap

Item 1 - Score: 100% (1 of 1)
c=2 {"score":1,"rejoin
Which of the following is an example of cross-cultural ignorance?
Thinking that relationship-building is a waste of time
Listening carefully to the needs of the other party
Having a long-term orientation
Learning about the culture of another country
Feedback: Correct
Item 2 - Score: 100% (1 of 1)
What is the best advice for negotiating a business deal in a cross-cultural setting?
Conduct transactions in the same way as in the U.S.
Move quickly from topic to topic during negotiations.
Avoid a win/lose outcome.
Avoid a win/win outcome.
Feedback: Correct.
Item 3 - Score: 100% (1 of 1)
A good cross-cultural manager does all of the following except
Not remain open to compromise
Show empathy
Focus on people's needs
Appreciate different points of view
Feedback: Correct
Item 1 - Score: 100% (1 of 1)
Karen is a new manager in a department that has several people from different countries and cultures (including
Africa, Australia, and India). Which of the following behaviors would help Karen work effectively with such a diverse
group of cultures?
Karen understands and appreciates religious beliefs of other cultures.
If someone does not understand what Karen is saying, she repeats it louder for clarity purposes.
Karen encourages her team to take notes during meetings, in order to not miss any details.
In every meeting, Karen cites a company policy as a means of support for her time-off from work policy.
Feedback: Correct. Understanding and appreciating religious beliefs of other cultures are traits associated with
working well with diverse cultures in the workplace.
Item 2 - Score: 100% (1 of 1)
Which of the following is not a trait of high cultural intelligence?
Taking pleasure in talking with someone who has limited English.
Finding work on a multicultural team to be very satisfying.
Shaking hands when meeting with someone from another culture for the first time.
Regularly associating with people from different cultures with relative ease.
Feedback: Correct. Shaking hands when meeting someone from another culture for the first time is not a trait
associated with high cultural intelligence.
Item 3 - Score: 100% (1 of 1)
Alfonso is a new manager and several of his employees are from different countries, having recently moved to the
U.S. within the last 6 months. Specifically, he has team members from France, India, and Japan, to go along with
several U.S. citizens on his team. Which of the following actions would be considered to be an example of high
cultural intelligence?
Alfonso should share his views on international politics openly and consistently, in order to let his team know where
he stands on such issues.
Alfonso should be open to changing the way he behaves during a cross-culture situation.
Alfonso should communicate the same way with everyone in order to maintain consistency.
Alfonso should take his employees to his favorite Chinese restaurant every time they celebrate a team-mate's
birthday.
Feedback: Correct. Being open to changing the way he behaves when a cross-culture situation seems to require it
is a trait associated with high levels of cultural intelligence.
1. Globalization (Connect)
Use your understanding of the current international business environment to complete the sentence.
A result of globalization is increasing interdependence of
countries, businesses, and people.
Points:
1/1
Close Explanation
Explanation:
With the marked increase in globalization, countries, businesses, and people have experienced increasing
interdependence. Trade and investments, information, social and cultural ideas, and political cooperation flow more
freely across national boundaries. An organization may have suppliers, employees, and customers in multiple
countries.
Which of the following are examples of companies operating in a globalized world? Check all that apply.
San Franciscobased Airbnb used #OneLessStranger to spark an international social media campaign in which it
asked its community of customers to perform random acts of hospitality for strangers, then share a video or photo of
themselves with the person they helped.
Esurance, a subsidiary of Allstate, sells car insurance online and over the phone to consumers in 40 U.S. states,
and it advertises in conjunction with the Super Bowl and Major League Baseball.
Dunkin Donuts serves dry pork and seaweed donuts in China and grapefruit donuts in Korea.
Austrias Red Bull sponsors extreme sports events across Europe, North and South America, and Asia, making its
drinks feel like a local presence while the company maintains a European look to its packaging.
Points:
0.75 / 1
Close Explanation
Explanation:
The examples of Red Bull, Airbnb, and Dunkin Donuts show companies that are fluent in the exchange of ideas across
national boundaries and cultures. These are globalized companies. Esurance operates entirely in the domestic U.S.
market. (Source: Fleishman, H. (2014, July 29). 13 businesses with brilliant global marketing strategies. Retrieved
from http://blog.hubspot.com/blog/tabid/6307/bid/33857/10-Businesses-We-Admire-for-Brilliant-Global-
Marketing.aspx)
Globalization has dramatically shifted the environment for managers, with a decreasing number of large international
corporations located in the United States
Points:
1/1
Close Explanation
Explanation:
Globalization and an increasing interdependence have dramatically shifted the environment for managers, with a
decreasing number of large international corporations in the United States. Looking at the geographical locations of
Fortune Global 500 companies, you can see that the number of companies in the Americas has declined while the
number of companies in Europe and Asia are increasing.
Great Place to Work Institute named Microsoft as the best globalized company to work for. What characteristics could
have qualified the company as a global company? Check all that apply.
Microsofts corporate headquarters is in Redmond, Washington, and it employs many people there.
Microsoft has employees in many countries.
Microsoft sells its products and services around the world.
Microsofts supply chains for its products include shipping raw materials, parts, and finished manufactured goods
across national borders.

Points:
1/1
Close Explanation
Explanation:
Microsoft has employees all over the world. In fact, one of the policies that made Microsoft number one on this list
was the fact that the company modifies its parental leave policies to be generous relative to the standards of the
many countries in which it operates. In Norway, for example, where parental leave policies are already mandated to
be generous, Microsoft hosts lunches for parents on leave and their children, allowing them to reconnect with their
colleagues. Microsoft also sources raw materials and parts and manufactures finished goods in many countries, and
Microsoft sells its software and services around the globe. (Source: Leahey, C. (2011, October 28). 25 best global
companies to work for. Fortune. Retrieved from
http://archive.fortune.com/galleries/2011/fortune/1110/gallery.best_companies_global.fortune/)
Technology, especially the Internet, and international trade agreements have facilitated globalization
, which includes the flow of trade and ideas across national borders.
Points:
1/1
Close Explanation
Explanation:
Globalization refers to the extent to which trade and investments, information, social and cultural ideas, and political
cooperation flow between countries. This has been greatly facilitated by technology and international trade
agreements. Managers need to have a global mindset to work effectively in the diverse environment of globalization.
Franchising, or licensing the organizations brand name and systems to others, is one way to enter both domestic and
international markets.
Which of the following are ways in which globalization impacts companies? Check all that apply.
Divisional headquarters may be in more than one country.
A company can take advantage of an expanding foreign market when its domestic market is not growing.
Coworkers in the same office or on the same team tend to be from the same country.
Products can be manufactured in countries where labor costs are less and then sold at a more competitive price.
Points:
0.75 / 1
Close Explanation
Explanation:
Due to globalization, companies may have headquarters in multiple countries, and they can take advantage of market
opportunities and lower-cost supplies in various countries. Also because of globalization, people are crossing borders
more than ever, and ones immediate coworkers are more likely to be from other countries.
2. Global mindset (Connect, Perform)
Read the scenario and then answer the questions that follow.
Carly is applying for a position at a multinational corporation that will require her to work with people in other
countries. Fortunately, she has experience doing this. To prepare for her interview, she is reviewing instances when
she demonstrated a global mindset at her previous job. She knows that she will show the interviewer she has a global
mindset by telling about times she has appreciated and influenced individuals, groups, organizations, and systems
with different social, cultural, political, institutional, intellectual, and psychological characteristics.
Carly is eager to tell the interviewer about the team she led of product managers from the United States, Latin
America, and Europe. At first, team members were unsure of how to relate to each other, but she was able to find
common ground and relate in a culturally sensitive way with each one. Which dimension of her global mindset would
this experience show the interviewer?
Cognitive dimension
Social dimension
Psychological dimension
Points:
1/1
Close Explanation
Explanation:
Carlys story about leading an international team would demonstrate the social dimension of her global mindset,
because it would show that she can build trusting relationships with people of other cultures. The psychological
dimension relates to how much someone enjoys culturally diverse situations, and the cognitive dimension concerns
how much someone knows about other business environments and cultures.
Carlys friend Brian says that he admires her ability to interact confidently with people in other countries, and he asks
for her advice. How could Brian improve his global mindset? Check all that apply.
Attending cultural events, such as with musical groups and guest speakers from other countries, that attract a
diverse audience
Studying how the most successful U.S. companies became successful
Interacting on social media with people he can communicate easily with because they share a common
background and language
Learning another language and practicing it regularly with native speakers

Points:
1/1
Close Explanation
Explanation:
One can develop a global mindset by learning and by doing. Both are easier when one has had exposure to different
cultures and languages.
Examples of learning include the following:

Having a genuine curiosity about other people and cultures
Studying world affairs and international business
Keeping an open mind about different viewpoints
Examples of learning by doing include these activities:
Cultivating relationships with people across cultural and national boundaries
Participating in social media exchanges with people around the world
Traveling and studying in other countries
Learning a foreign language
The following activities will not help someone develop their global mindset:
Assuming that ones own cultures or countrys viewpoint is more correct than others views
Communicating in ones own language
Learning more about ones home country
Interacting with other people like oneself
Traveling only within ones own country

3. Changing international landscape (Connect, Perform)
Recently, foreign companies have invested more in business in China
than they spent anywhere else in the world.
Points:
1/1
Close Explanation
Explanation:
For the past several years, foreign companies have spent more in China than they have spent anywhere else in the
world. Chinas large population makes it a prime market for a variety of products and services.
As a manager for a company that is looking to expand to India, what should your company focus on? Check all that
apply.
Employing translators to help break down the language barrier
Information technology
Research and development opportunities
Manufacturing processes
Points:
0.5 / 1
Close Explanation
Explanation:
India is quickly becoming a leader in information technology, software design, services, and precision engineering.
India is home to scientifically trained, highly skilled workers which has attracted companies research and
development centers. The large population of English speaking people is encouraging for companies to outsource
service-related parts of their business there.
In the table below, read the description and determine if it is referring to China or India.
Indi
Description China
a
The medical diagnostics and device manufacturing sectors, as well as the pharmaceutical sector, are growing rapidly.
This country is home to the fastest-growing middle class in history, which makes it a huge market for a variety of
products and services.
Points:
1/1
Close Explanation
Explanation:
China
India
China
This country is home to the fastest-growing middle class in history, which makes it a huge market for a variety of
products and services.
Explanation
China has the fastest-growing middle class in history and is the largest or second-largest market for many products
and services. China is a frequent site for the offshoring of manufacturing. Foreign companies must contend with a
sometimes hostile regulatory environment, so actively building positive relationships with the public and local officials
is important. Companies doing business in China sometimes have trouble getting paid and increasingly encounter
competition from domestic Chinese companies.
India
has the second largest population in the world and is a major source of technological and scientific brainpower.
Points:
1/1
Close Explanation
Explanation:
India has the second largest population in the world behind China. Its strong educational system provides exceptional
training in science and technological areas.
As a manager for a company that is looking to expand to China, what should your company focus on? Check all that
apply.
Building relationships with suppliers and business partners
Marketing products to the Chinese elite and upper class
Ensuring that contracts are signed before any business partnerships begin
Points:
1/1
Close Explanation
Explanation:
In China, relationship building is an important part of doing business. It is not uncommon for Chinese business people
to begin business before any contracts are signed. In the Chinese culture, the relationship is the contract. Additionally,
China is strong in manufacturing. Their manufacturing processes are so efficient that some Chinese brands are
becoming market leaders. China is home to the fastest-growing middle class. Products geared towards this group will
perform well.
Indi
Description China
a
Foreign companies often offshore their manufacturing here.
The large English-speaking population makes it ideal for outsourcing from U.S. companies.
Points:
1/1
Close Explanation
Explanation:
China
India
China
Foreign companies often offshore their manufacturing here.
Explanation
India
has the second largest population in the world and is a major source of technological and scientific brainpower.
Points:
1/1
Close Explanation
Explanation:
India has the second largest population in the world behind China. Its strong educational system provides exceptional
training in science and technological areas.
As a manager for a company that is looking to expand to India, what should your company focus on? Check all that
apply.
Research and development opportunities
Information technology
Employing translators to help break down the language barrier

Points:
1/1
Close Explanation
Explanation:
India is quickly becoming a leader in information technology, software design, services, and precision engineering.
India is home to scientifically trained, highly skilled workers which has attracted companies research and
development centers. The large population of English speaking people is encouraging for companies to outsource
service-related parts of their business there.
Indi
Description China
a
Foreign companies selling their products and services increasingly encounter tough competition from local businesses.
This country is becoming a rising power in software design, services, and precision engineering.
Points:
1/1
Close Explanation
Explanation:
China
India
China
Foreign companies selling their products and services increasingly encounter tough competition from local businesses.
Explanation
4. Multinational corporations (Connect, Perform)
Use your knowledge of multinational corporations (MNCs) to complete the following sentence.
Because they can move assets and jobs from country to country, MNCs typically have influence
over the economies, politics, and culture of the countries in which they do business.
Points:
1/1
Close Explanation
Explanation:
MNCs are conduits of foreign cultures to the countries in which they do business. They also have the power to move
cash and other investments, jobs, and skilled workers from country to country, potentially giving them clout with the
countries in which they do business.
Talia lives in Houston, Texas. She has traveled to India several times and is interested in working for a multinational
corporation (MNC) with a presence there. She hopes that by working for such a company, shell first have an
opportunity to transfer to a position in India and live there for an extended time and then be able to parlay that
international experience into opportunities in other countries. Her research shows that MNCs with a significant
presence in India include Nestl, headquartered in Switzerland; PepsiCo, headquartered in the United States; Sony,
headquartered in Japan; and Sun Pharmaceutical Industries, headquartered in India itself. Talia wants to do a lot
more research on how these companies operate in India and on the nature of MNCs in general.
As Talia researches MNCs, she will find that they: Check all that apply.
Expect their executives to look at the business environment globallyas one market for strategy, sourcing,
production, and sales and marketing
Transfer capital, technology, and people among their affiliates in various countries
Ultimately integrate their diverse activities in a centralized headquarters function, which may be physically
located in one or more countries
Expect their executives to look at each of the business environments they operate in separatelywith knowledge
on each as a separate market for strategy, sourcing, production, and sales and marketing
Points:
1/1
Close Explanation
Explanation:
In an MNC, capital, technology, and people are transferred among country affiliates. The activities of these affiliates
are ultimately integrated in a centralized headquarters function, where managers view the companys operations from
a global perspective. Finally, managers must exercise a global perspective by look at the entire world as one market
for strategic decisions, resource acquisition, location of production, advertising, and marketing efficiency.
Researchers have found that multinational corporations can be characterized based on their orientation to the
different countries in which they do business. Complete the following sentence with the correct term.
A company that treats its resources, products, and people as transcending national boundaries is a geocentric
company, and it will hire and transfer people for key positions without regard to nationality.
Points:
1/1
Close Explanation
Explanation:
Multinationals can be described in three ways:
Ethnocentric companies emphasize their home country culture. Even as they do business worldwide, they are still identifiably an American,
British, German, etc. company, and their home market may take priority.
Polycentric companies are oriented toward the cultures and markets of the individual countries in which they do business, so their operations
have different characteristics from country to country.
Geocentric companies have a truly global orientation and do not prioritize individual national cultures or markets. The number of such companies
is growing.
5. Bottom of the pyramid (Connect, Perform)
Management in the News
In India, the Swiss pharmaceutical company Novartis International AG is using its Arogya Parivar initiative to increase
trust in conventional medicine among the very poor, thereby cultivating a market for its products. Novartis employs
health educators to teach laypeople about disease, treatment, and prevention, and it also sends supervisors to assess
each local areas needs and provide education to health care providers. Novartis has accompanied this education effort
with a different pricing structure and selling medications in smaller packages with smaller price tags. By cultivating
this untapped market in a socially entrepreneurial way, Novartis seeks to increase its profits. The effort has been
successful enough in India that the company has started similar programs in Kenya and Vietnam and has plans for
Indonesia.
Source: Clinton, L. (2014, May 12). Building new marketplaces at the bottom of the pyramid. The Guardian. Retrieved
from http://www.theguardian.com/sustainable-business/novartis-cemex-sustainability-microensure-pyramid
Which concept is Novartiss marketing initiative based on?
Bottom of the pyramid (BOP)
Multinationalism
Direct investing
Points:
1/1
Close Explanation
Explanation:
Novartiss Arogya Parivar initiative is based on the bottom of the pyramid (BOP) concept, which proposes that
corporations can make significant profits while simultaneously alleviating poverty and other social ills by selling to the
worlds 4 billion poorest people. By seeing these people as potential consumers, not just recipients of charity,
companies can tailor their products to the needs of this historically underserved market.
6. Outsourcing and market entry strategies (Connect, Perform)
Place the letter next to each description in the space next to the market entry strategy described.
Answer Market Entry Description

Strategy
A Exporting A. A German company finds that they can save money by hiring a Japanese company to handle
B
their employees technical support issues.
B
A
Outsourcing B. The owner of an athletic clothing retailer would like to sell her products in Europe. She has
A
created websites in several languages which allow for online ordering.
C
Partnership C. General Mills would like to sell their cereals in China. They realize they may need to adjust the
C
flavors to suit local tastes. The easiest and quickest way for General Mills to do this would be to
work with a local company, Bright Foods, to develop flavors and distribute the products.
Points:
1/1
Close Explanation
Explanation:
Exporting
Outsourcing
Partnership
B: Exporting
The owner of an athletic clothing retailer would like to sell her products in Europe. She has created websites in several
languages which allow for online ordering.
Explanation
Exporting involves a company selling a product in a foreign country while maintaining the production facilities in their
home country. Exporting is a low risk and relatively low cost way for companies to sell their products abroad. The
owner of the athletic clothing store is participating in exporting because she will accept online orders from other
countries.
A: Outsourcing
A German company finds that they can save money by hiring a Japanese company to handle their employees
technical support issues.
Explanation
Outsourcing or offshoring occurs when a company moves a division of labor to another country. Many companies
choose to outsource manufacturing to China where labor is less expensive. The internet and lower telecommunications
costs have allowed companies to outsource higher levels of work, such as software development, as well. Technology
support is another department that often gets outsourced to other countries.
C: Partnership
General Mills would like to sell their cereals in China. They realize they may need to adjust the flavors to suit local
tastes. The easiest and quickest way for General Mills to do this would be to work with a local company, Bright Foods,
to develop flavors and distribute the products.
Explanation
A partnership is often the fastest, least risky, and cheapest way to sell products internationally. A joint venture is a
type of partnership in which a company shares costs and risks with another company in the host country. General
Mills would likely engage in a joint venture where costs and profits are shared.
Suppose you are a manager for an athletic shoe manufacturer, Kutsu. Your company was founded two years ago, by a
young entrepreneur from Japan, Shinzo Bannai. His family moved to the United States when he was a young teenager
and earned a degree in design from a college in California. Shinzo, with a loan from his father, purchased
manufacturing equipment and rented a factory space in San Francisco. Kutsus products sell moderately well in the
U.S, with just under $2 million in sales last year. Shinzo was able to pay back his father for the loan and hire an
additional designer to help with new products for next year. Kutsu has a high concentration of sales in Los Angeles,
New York City, and Hawaii which, coincidentally, have large populations of Japanese-Americans. As a result, Shinzo
would like to sell Kutsu shoes in Japan and has asked you to determine the best market entry strategy.
Given the information above, what is the best market entry strategy for this company?
Partnership
Outsourcing
Exporting
Points:
0/1
Close Explanation
Explanation:
Many companies first get involved internationally by exporting. This is the best option for Kutsu at this point for
several reasons. Although Kutsu products sell well with Japanese-Americans, there is no guarantee that consumers in
Japan will react as favorably. Exporting is a low risk way to sell Kutsu products in Japan and test the market instead
of making a large investment in a Japanese factory or distribution system. In addition, exporting requires little
financial investment and it seems from the scenario that Kutsus financial situation would not allow for a significant
investment at this time. The scenario gives no mention of companies or investors that may be interested in a
partnership or joint venture and without proven sales in Japan, this is not an attractive option.

Strategy
A Exporting A. A California winery produces seven varieties of wine at their vineyard and sells them in 20
A
countries across the globe.
A
C
Outsourcing B. Coca Cola manufactures and sells concentrates and syrups to bottling companies in many
C
countries. The bottling companies then manufacture, package and distribute the Coca Cola
branded products to customers and vendors.

B
Partnership C. Many U.S. companies base their call centers in India where there is a high English speaking
B
population.
Points:
1/1
Close Explanation
Explanation:
Exporting
Outsourcing
Partnership
A: Exporting
A California winery produces seven varieties of wine at their vineyard and sells them in 20 countries across the globe.
Explanation
home country. Exporting is a low risk and relatively low cost way for companies to sell their products abroad. The
California winery produces the wine in California and exports the final product to 20 countries.
C: Outsourcing
Many U.S. companies base their call centers in India where there is a high English speaking population.
Explanation
costs have allowed companies to outsource higher levels of work, such as software development, as well. India is a
popular country for companies to outsource call centers.
B: Partnership
Coca Cola manufactures and sells concentrates and syrups to bottling companies in many countries. The bottling
companies then manufacture, package and distribute the Coca Cola branded products to customers and vendors.
Explanation
type of partnership in which a company shares costs and risks with another company in the host country. Coca Cola
relies on these partnerships to distribute their product globally.
Suppose you are a manager for a multinational company that produces a variety of beauty products. Heartland
Company was founded in 1942 and began making shampoo and soap products. Heartland, headquartered in St. Louis,
Missouri, now sells hair care, soap, and makeup products in 22 countries across the globe. Heartland holds the
majority market share in the U.S. and is largely regarded as a trend-leader in hair and beauty products. As the Global
Brand Vice President, you have been tasked with taking the brand to Brazil, considered to be a large cosmetics market
in the next few years. The Brazilian cosmetics and hair care market is largely dominated by Belleza who currently
holds a 60% market share. Belleza is marketed toward young, fashion-forward women. The second largest company,
Botnico, holds just a 20% share of the market. Your research suggests that while Botnico has efficient
manufacturing and distribution, young consumers see them as being a brand for their mothers and grandmothers.
Outsourcing
Partnership
Exporting
Points:
1/1
Close Explanation
Explanation:
A partnership with Botnico is the best option for Heartland Company. Companies often form partnerships when one
company has an advantage in an area such as manufacturing or distribution. We know that Botnico has this
advantage in Brazil. Heartlands strength are their products and knowledge of the younger market that Botnico does
not appeal to. Although exporting is an option for Heartland, they will not be able to gain significant market share with
this strategy. A partnership gives Heartland Company and Botnico an opportunity to compete with Belleza for market
share among the young women of Brazil. This task would be significantly more difficult without a partnership.

Strategy
A Exporting A. Jaguar Land Rover entered the Chinese market with the help of Chery Automotive, a Chinese
C
automaker. Chery will help Jaguar Land Rover develop models tailored to the Chinese market.
C
B
Outsourcing B. Nike products are sold in many countries throughout the world. Nike manufactures their shoes
B
in China and Vietnam.
A
Partnership C. An artisanal chocolate company in Boston has a large number of Irish customers who purchase
A
the chocolates to send to family and friends in Ireland. One of the customers has a brother in
Dublin, Ireland that would like to sell the chocolates in his small gift shop.
Points:
1/1
Close Explanation
Explanation:
Exporting
Outsourcing
Partnership
C: Exporting
An artisanal chocolate company in Boston has a large number of Irish customers who purchase the chocolates to send
to family and friends in Ireland. One of the customers has a brother in Dublin, Ireland that would like to sell the
chocolates in his small gift shop.
Explanation
home country. Exporting is a low risk and relatively low cost way for companies to sell their products abroad. This
artisanal chocolate company is exporting their products to Ireland.
B: Outsourcing
Nike products are sold in many countries throughout the world. Nike manufactures their shoes in China and Vietnam.
Explanation
costs have allowed companies to outsource higher levels of work, such as software development, as well. Nike
outsources their manufacturing to other countries.
A: Partnership
Jaguar Land Rover entered the Chinese market with the help of Chery Automotive, a Chinese automaker. Chery will
help Jaguar Land Rover develop models tailored to the Chinese market.
Explanation
type of partnership in which a company shares costs and risks with another company in the host country. Jaguar Land
Rover and Chery Automotive formed a joint venture which shows Jaguar Land Rovers commitment to selling cars in
the Chinese market.
Suppose you are a manager for a multinational company that produces a variety of beauty products. Heartland
Company was founded in 1942 and began making shampoo and soap products. Heartland, headquartered in St. Louis,
Missouri, now sells hair care, soap, and makeup products in 22 countries across the globe. Heartland holds the
majority market share in the U.S. and is largely regarded as a trend-leader in hair and beauty products. As the Global
Brand Vice President, you have been tasked with taking the brand to Brazil, considered to be a large cosmetics market
in the next few years. The Brazilian cosmetics and hair care market is largely dominated by Belleza who currently
holds a 60% market share. Belleza is marketed toward young, fashion-forward women. The second largest company,
Botnico, holds just a 20% share of the market. Your research suggests that while Botnico has efficient
manufacturing and distribution, young consumers see them as being a brand for their mothers and grandmothers.
Exporting
Outsourcing
Partnership
Points:
1/1
Close Explanation
Explanation:
A partnership with Botnico is the best option for Heartland Company. Companies often form partnerships when one
company has an advantage in an area such as manufacturing or distribution. We know that Botnico has this
advantage in Brazil. Heartlands strength are their products and knowledge of the younger market that Botnico does
not appeal to. Although exporting is an option for Heartland, they will not be able to gain significant market share with
this strategy. A partnership gives Heartland Company and Botnico an opportunity to compete with Belleza for market
share among the young women of Brazil. This task would be significantly more difficult without a partnership.
7. Sociocultural and legal-political differences (Connect, Perform)
Under President Hugo Chvez, who held power from 1999 until his death in 2013, the government of Venezuela
nationalized numerous petroleum industry facilities. Companies operating there faced political risk
, because the government could have tried to force them to accept minority stakes in assets that they built.
Points:
1/1
Close Explanation
Explanation:
Political risk is the probability that a company will lose assets, earning power, or managerial control due to politically
based events in other countries or actions by those countries governments. The nationalization of assets, or the
government takeover of those assets, is a major political risk. Political instability includes riots, revolutions, civil
disorders, and frequent changes in government. (Source: Daniel, F. J. (10, June 24). Venezuela to nationalize U.S.
firms oil rigs. Reuters. Retrieved from http://www.reuters.com/article/2010/06/24/us-venezuela-nationalizations-

idUSTRE65N0UM20100624/)
Which of the following companies has high individualism?
Dave Douglas, the CEO of Intrane, LLC, routinely walks through the office, stopping to chat with his employees.
He encourages them to speak freely, and he gives them credit for their good ideas. His employees all say that Dave is
one of the few bosses whose open door policy is just that: an open door.
Ivanas Images has a reputation for being the best in the business. Sure, Ivana is difficult to work withyou
wouldnt want her on your teambut she can do layout and design faster and better than anyone else. Ivana likes to
work by herself, and she is happiest when she can prove that she is better than everyone.
Mylar Mechanics is a global organization, so it is important to make sure that employees are able to communicate
with each other on a regular basis. Last week, managers used the World Clock Meeting Planner to find the best time
for a meeting between the Amsterdam, Austin, Delhi, and Orlando offices.
Points:
1/1
Close Explanation
Explanation:
Ivanas Images is an example of a company with individualist values. In an individualist culture, people act on their
own, and individual achievements are rewarded. This is in contrast with a collectivist society, such as that of Japan. In
Japan, children are taught, The nail that sticks out gets hammered down. Compare this message with the more
individualistic U.S. saying, The squeaky wheel gets the grease.
Which of the following companies has high power distance?
In Allegra Systems, all of the managers wear suits and ties, while all of the employees wear casual dress.
Managers are asked to speak first in every meeting, and employees rarely contradict what they say.
Dave Douglas, the CEO of Intrane, LLC, routinely walks through the office, stopping to chat with his employees.
He encourages them to speak freely, and he gives them credit for their good ideas. His employees all say that Dave is
one of the few bosses whose open door policy is just that: an open door.
At Andersons Autos, compensation is based on how much you sell, not on what your job title is. Sales figures and
overall profitability results are shared freely throughout the company, and managers and employees routinely get
together to brainstorm about new ways to increase revenues.

Points:
1/1
Close Explanation
Explanation:
Sabine Industries is a company with high power distance. In high power-distance cultures, there is a distinct
difference between the people in charge and the people who follow them. One indicator of a high power-distance
culture is the use of titles, particularly if they are used for one level of employees and not another. Another indicator
is whether or not people expect to be asked for their opinions: In high power-distance cultures, decisions are made by
those in charge, and lower-level employees are not consulted.
Which of the following companies has high uncertainty avoidance?
It seems like Lucasa Lighting has a new organizational chart every few months. People dont seem to mind.
Lucasa is growing rapidly, and change is expected and even welcomed. Employees enjoy working with new people on
a regular basisit helps them to learn new skills and see the organization differently.
At Sipria Insurance, little has changed since the 1960s. Few employees even know how to use e-mail, and most
business is conducted by telephone or in person with a simple handshake. Since Sipria caters exclusively to older
people who are less likely to use the Internet, its practices work well for the company.
Mary has been in real estate for 30 years and loves it because theres always something new to learn. Last year,
she attended a class on feng shui, the Chinese practice of harmonizing the arrangement of home furnishings, and this
year she signed up to take several classes on how to handle home foreclosure sales. The changing trends and laws
are what keeps real estate exciting for Mary.

Points:
1/1
Close Explanation
Explanation:
Sipria Insurance is exhibiting high uncertainty avoidance. People and companies who avoid uncertainty do not like
change, and they are likely to do what they can to create a structured and predictable environment. Cultures with
high uncertainty avoidance often have strict rules for behavior, and people are less likely to question the established
order or make efforts to learn new things.
8. Communication challenges (Connect, Perform)
Read the scenario and determine if the situation is describing a high or low context culture.
High Low
Scenario
context context
A multinational companys website design for a German country features a lot of text and information on the
products in addition to pictures of a person engaged in a solitary activity.
In China, it is important to build personal relationships before embarking on a business relationship. The
Chinese value relationships and trust more than business.
Points:
1/1
Close Explanation
Explanation:
Low context cultures generally use communication to exchange facts and information rather than to build personal
relationships. Meaning is derived from words and business transactions are more important than building relationships
and trust. Low context cultures also focus on individual welfare and achievement rather than the welfare of the group.
In high context cultures, people use communication to build personal social relationships. Meaning is derived from
context--setting, status, and nonverbal behavior--more than from words. Relationships and trust are more important
than business and the welfare and harmony of the group are valued rather than individual achievement.
Like the global mindset, which can be thought of as having cognitive, psychological, and social dimensions, CQ can be
thought of as having three dimensions: cognitive, physical, and emotional.
Determine which dimension of CQ each example of behavior represents.
Example Dimension of CQ
Seeking out new ethnic restaurants and trying new dishes with unknown ingredients
Emotional
Learning Spanish or Chinese to communicate more effectively with colleagues and customers
Physical
Points:
0.5 / 1
Close Explanation
Explanation:
Example Dimension Explanation

of CQ
Seeking out new ethnic Emotional Trying new ethnic restaurants and foods is an example of the emotional dimension of cultural
restaurants and trying new intelligence, which reflects the confidence and pleasure someone feels when interacting with
dishes with unknown another culture. To have a high CQ, you must be comfortable with the ambiguity of not always
ingredients being sure what other people mean or whether they are interpreting your communication the
way you intend. Sometimes people will have unexpected responses to things you do and say.
The manager with a high CQ can adapt quickly and does not feel stressed out by the demands
of the situation.
Learning Spanish or Cognitive Learning another language is an example of the cognitive dimension of cultural intelligence,
Chinese to communicate which concerns knowing and understanding cultural differences. These can include whether a
more effectively with culture or subculture is high context or low context, religious beliefs, patterns of verbal and
colleagues and customers nonverbal communication, expectations of gender roles, food and music preferences, and much
more.
8. Communication challenges (Connect, Perform)
Read the scenario and determine if the situation is describing a high or low context culture.
High Low
Scenario
context context
At Testing Resources Inc., most employees are seasonal workers hired to grade standardized tests for several states.
Employees work independently and conversation only occurs if someone needs clarification on an answer.
Employee performance metrics are posted daily, and the highest performing individuals receive a $20 bonus.
Every Sunday, Carlys family, including her aunts, uncles, and cousins, gathers at her grandparents house for
dinner. They all sit on the patio and talk and play croquet.
Points:
1/1
Close Explanation
Explanation:
Low context cultures generally use communication to exchange facts and information rather than to build personal
relationships. Meaning is derived from words and business transactions are more important than building relationships
and trust. Low context cultures also focus on individual welfare and achievement rather than the welfare of the group.
In high context cultures, people use communication to build personal social relationships. Meaning is derived from
context--setting, status, and nonverbal behavior--more than from words. Relationships and trust are more important
than business and the welfare and harmony of the group are valued rather than individual achievement.
Like the global mindset, which can be thought of as having cognitive, psychological, and social dimensions, CQ can be
thought of as having three dimensions: cognitive, physical, and emotional.
Determine which dimension of CQ each example of behavior represents.
Example Dimension of CQ
Reading several British newspapers to understand the perspectives of ones UK counterparts on world events and popular
Cognitive
culture
Making eye contact because this conveys honesty in the other culture
Emotional
Points:
0.5 / 1
Close Explanation
Explanation:
Example Dimension Explanation

of CQ
Reading several British Cognitive Reading foreign newspapers is an example of the cognitive dimension of cultural
newspapers to understand the intelligence, which concerns knowing and understanding cultural differences. These can
perspectives of ones UK include whether a culture or subculture is high context or low context, religious beliefs,
counterparts on world events and patterns of verbal and nonverbal communication, expectations of gender roles, food and
popular culture music preferences, and much more.
Making eye contact because this Physical Making eye contact is an example of the physical dimension of cultural intelligence. The
conveys honesty in the other physical dimension has to do with ones ability to adapt components of nonverbal
culture communication to operate more effectively in a cross-cultural situation. These
components include facial expressions, gestures, tone of voice, and other physical
behaviors.

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Item 1 - Score: 100% (1 of 1)

Which of the following is an example of cross-cultural ignorance?

Thinking that relationship-building is a waste of time

Listening carefully to the needs of the other party

Having a long-term orientation

Learning about the culture of another country

Conduct transactions in the same way as in the U.S.

Move quickly from topic to topic during negotiations.

Avoid a win/lose outcome.

Avoid a win/win outcome.

A good cross-cultural manager does all of the following except

Not remain open to compromise

Focus on people's needs

Appreciate different points of view

Karen understands and appreciates religious beliefs of other cultures.

Which of the following is not a trait of high cultural intelligence?

Taking pleasure in talking with someone who has limited English.

Finding work on a multicultural team to be very satisfying.

A result of globalization is increasing interdependence of

countries, businesses, and people.

themselves with the person they helped.

corporations located in the United States

Microsoft has employees in many countries.

Microsoft sells its products and services around the world.

across national borders.

Divisional headquarters may be in more than one country.

Studying how the most successful U.S. companies became successful

background and language

Learning another language and practicing it regularly with native speakers

Examples of learning include the following:

Studying world affairs and international business

Keeping an open mind about different viewpoints

Examples of learning by doing include these activities:

Cultivating relationships with people across cultural and national boundaries

Participating in social media exchanges with people around the world

Traveling and studying in other countries

Learning a foreign language

Communicating in ones own language

Learning more about ones home country

Interacting with other people like oneself

Traveling only within ones own country

Recently, foreign companies have invested more in business in China

than they spent anywhere else in the world.

Employing translators to help break down the language barrier

Research and development opportunities

products and services.

Building relationships with suppliers and business partners

Marketing products to the Chinese elite and upper class

Foreign companies often offshore their manufacturing here.

Foreign companies often offshore their manufacturing here.

Research and development opportunities

Employing translators to help break down the language barrier

production, and sales and marketing

located in one or more countries

have different characteristics from country to country.

Which concept is Novartiss marketing initiative based on?

Bottom of the pyramid (BOP)

Answer Market Entry Description

Answer Market Entry Description

branded products to customers and vendors.

Answer Market Entry Description

firms oil rigs. Reuters. Retrieved from http://www.reuters.com/article/2010/06/24/us-venezuela-nationalizations-

Which of the following companies has high individualism?