International Business Chapter 3 - Sociocultural Forces Mini Test Task 1 - Choose The Correct Answer

International Business
Chapter 3 – Sociocultural Forces

Mini Test
Task 1 – Choose the correct answer.
1. The first step international business managers can take in order to learn to live with
other cultures is:
A) to learn the language.
B) to visit the country.
C) to realize that other cultures exist which are different from their own.
D) make friends with natives of the country.
2. Strategic technology leveraging is

A) the concept of using external technology to complement rather than substitute for
internal technology.
B) obtaining more efficiency from technology by increasing capital investment.
C) using technology to improve a firm's strategy.
D) forming blocs to prevent the poaching of technological ideas and innovations.
3. _____ may be the result of the host government's insistence that foreign investors
import only the most modern machinery.
A) Technological dualism
B) High import duties
C) High underemployment
D) Low labor costs
4. Which of the following is not one of the six rules of thumb for going business across
cultures?
A) establish trust.
B) be prepared.
C) do things quickly.
D) understand the importance of language.
5. Culture is the sum total of beliefs, rules, techniques, institutions and artifacts that
characterize human populations. Culture is:
A) innate.
B) independent of various aspects of a society.
C) shared.
D) unique.
6. The belief in the superiority of one's own ethnic group is referred to as:
A) ethnocentricity.
B) egotism.
C) biocentricity.
D) culturalism.
7. In order to learn to live with other cultures, an international business manager's first
step is to:
A) visit the country as a tourist.
B) learn the language.
C) do extensive research.
D) realize that other cultures exist and are often different from one's own.
8. A key determinate in the evaluation of managers is:

A) who one knows in the United States.
B) the school one attends and family background in Great Britain.
C) performance in France.
D) family ties in Italy.
9. One reason for Disney's financial problems in Paris was:

A) poor balance sheet and income statement presentation
B) the European attitude towards trust in business relationships.
C) the arrogant and insensitive attitude of Disney executives to European business
culture.
D) all of the above.
10. Aesthetics is a culture's sense of:

A) religion.
B) beauty and good taste.
C) man-made objects.
D) human interaction.
11. The cultural characteristic that probably presents more adaptation problems for
Americans overseas than does any other is attitudes toward:
A) time.
B) religion.
C) authority.
D) money.
12. American preoccupation with _____________ is a formidable barrier to the

establishment of successful business relationships with Asian and Middle Eastern
executives.
A) power.
B) long-term goals.
C) monthly profit and loss statements.
D) authority.
13. Probably one of the most vexing problems for the newcomer to Latin America is:
A) the laziness of the workers.
B) the poor working conditions.
C) the government corruption.
D) the manana attitude.
14. In Spain, the three-hour siesta is disappearing because:

A) both husbands and wives work, leaving no one at home to prepare the meal that
precedes the siesta.
B) of pressure from the other countries in the EU that take shorter lunch breaks.
C) longer commutes from the suburbs make it more difficult to dash home for a siesta.
D) all of the above.
15. Marketers find it difficult to introduce products in many foreign markets because of
A) high import tariffs.
B) peoples' attitude toward change.
C) government restrictions.
D) high transportation costs.
16. ____________ refers to all man-made objects.

A) Economies
B) Material culture
C) Technology
D) Man-made culture
17. Technological superiority is the goal of most companies, but is especially important
to international companies because it:
A) Technological superiority is the goal of most companies, but is especially important to
international companies because it:
B) holds the international division of labor constant.
C) can hinder the formation of competitive alliances.
D) can give a firm confidence to enter a foreign market when other companies are
already established there.
18. The fear of the boomerang effect has caused some American firms to:
A) restrict the sale of their technology to the Japanese.
B) cancel plans to enter the Chinese market.
C) pull operations out of Russia.
D) avoid Australia all together.
Task 2 – Decide the statements True or False.

1. The national culture helps determine the criteria by which managers are evaluated.
2. Attitude toward time is the cultural characteristic that probably presents the most
adaptation problems for Americans overseas.
3. The demonstration effect is the result of the backward-bending labor supply curve.
4. Generally, the greater the difference between an old and a new method or product, the
more difficult it is for the firm to gain acceptance of a change.
5. According to Hofstede, power distance is the extent to which members of a society
accept the unequal distribution of power among individuals.
Task 3 – Answer the questions.
1. What sociocultural factors should be considered when you enter the Middle East
markets?
2. What sociocultural factors should be considered when you enter Australia

market?
3. Discuss Hofstede’s four cultural dimensions in Vietnam

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International Business

Chapter 3 – Sociocultural Forces

2. Strategic technology leveraging is

8. A key determinate in the evaluation of managers is:

9. One reason for Disney's financial problems in Paris was:

10. Aesthetics is a culture's sense of:

12. American preoccupation with _____________ is a formidable barrier to the

14. In Spain, the three-hour siesta is disappearing because:

16. ____________ refers to all man-made objects.

Task 2 – Decide the statements True or False.

Task 3 – Answer the questions.

2. What sociocultural factors should be considered when you enter Australia

3. Discuss Hofstede’s four cultural dimensions in Vietnam

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