MBA 500 Midterm Part 2

Meaning must be transferred from a sender to a receiver across cultural, linguistic, and perceptual barriers (noise).

The overall communication process in international business is fragile because:

Meaning is implicit, heavily coded, and dependent on shared background, relationships, and non-verbal cues.

In a high-context society:

Communication relies on explicit, direct, and literal words where little is left to interpretation.

In a low-context culture:

Succinct style

A verbal communication style that uses a low amount of talk, comfortable silence, and understatements where words are chosen very sparingly (exemplified by Finland) is called:

Contextual style

When a verbal style focuses on the speaker's social role, formal hierarchy, and status relative to the receiver (common in South Korea and Japan), it is termed:

Downward communication

Communication directed from a manager to a subordinate to convey orders, information, and performance feedback is known as:

Upward communication

The transfer of information from subordinates to superiors—heavily utilized in Asian business cultures through Quality Circles and suggestion systems—is called:

Hiring employees based solely on English fluency or headquarters language knowledge without assessing their actual cultural interaction capability or writing skills.

What is the "Headquarters Language Trap" frequently encountered by multinational corporations?

Cross-cultural translation of meaning and perceptual filtering

Case Scenario: An American marketing firm launched an ad campaign in Taiwan using the slogan "Come alive with Pepsi." Due to a poor translation, the phrase terrified local consumers because it literally communicated that "Pepsi will bring your ancestors back from the grave." This is a classic example of a failure in:

Kinetics

In nonverbal communication, the study of body movement and facial expressions (such as nodding for agreement) is called:

Oculesics

Communicating through eye contact and gaze behavior is known as:

Haptics

The study of how physical touch is used to convey meaning (such as a firm handshake or a pat on the arm) is:

Proxemics

The use of physical space to convey messages—encompassing intimate, personal, social, and public distances—is termed:

Monochronic time schedule

When a culture views time as a linear, valuable, and depleting asset ("time is money") where schedules are strictly managed (e.g., USA), it operates on a:

Multitasking, bending schedules around human connection, and placing higher value on relationships than strict completion.

A polychronic time schedule is characterized by:

Chromatics

The use of color to communicate symbolic messages (such as wearing white for mourning in some cultures versus black in Western societies) falls under:

Two parties with opposing goals compete over a set value, where a gain for one is a loss for the other.

In cross-cultural negotiations, a distributive (zero-sum) negotiation approach means that:

Integrative negotiation

Which negotiation strategy is identified as the most useful tactic for international business success, focusing on win-win cooperation to integrate interests and create value?

Formulate tactics based on deep review and understanding rather than assumptions.

According to strategic directives for managing cross-cultural negotiations, a negotiator should:

Balance power dynamics and provide mutual benefits.

When choosing a location for high-stakes international negotiations, businesses frequently choose a neutral site in order to:

Use cross-cultural teams, collaborative governance structures, and intentional leadership alignment to honor common goals while respecting local identity.

Case Scenario: An MNC is planning a merger between a French firm and a Japanese firm. The French managers favor direct, individualistic communication, while the Japanese managers emphasize consensus, group harmony, and hierarchy. To bridge this gap successfully, leadership should:

Ethnocentric

Which strategic predisposition views overseas operations as secondary to the parent company and relies on home-country standards?

Strategic decisions are tailored to suit the specific cultures of the foreign countries where the MNC operates.

A polycentric predisposition in an MNC means that:

Regiocentric

If an MNC groups its foreign subsidiaries on a regional basis (e.g., Latin American division, European division) and tries to blend home interests with regional interests, what strategic predisposition is it exhibiting?

They enable the documentation of political change, build support for oppressed regions, and alter how the world understands global events.

In the context of technology and politics, what role do digital tools and live streaming play globally?

"Leapfrogging" traditional landline telephone networks and jumping straight to nationwide mobile cellular and 4G/5G infrastructure.

Which of the following represents a key technological shift in production and operations in emerging economies?

The Internet of Things (IoT)

Which future technology expected to impact the next decade involves a network of physical objects embedded with sensors, software, and connectivity to exchange data over the internet?

Blockchain technology

A decentralized, digital ledger that securely records transactions across multiple computers so that registered entries cannot be altered retroactively is known as:

Polychronic time orientation and relational intensity

Case Scenario: An international project manager observes that local employees in a Middle Eastern subsidiary treat schedules flexibly, prioritize building deep personal relationships before discussing business, and manage multiple conversations simultaneously. This behavior exemplifies:

That corporations may exploit lax environmental and social standards in poor countries to cut costs.

What is a primary criticism leveled by antiglobalization activists against multinational corporations?

Nationality principle

The principle of international law which holds that a country has the authority to make and enforce laws over its own citizens even when those citizens are traveling or living abroad is the:

Whether they fulfill fundamental moral duties and universal rules.

Under Kantian ethics, business decisions are evaluated based on:

The degree to which individuals are assertive, confrontational, and aggressive in social relationships.

When analyzing the GLOBE cultural dimensions, Assertiveness measures:

Success, money, power, and material achievement.

In Hofstede's cultural dimensions, Masculinity vs. Femininity refers to the distribution of emotional roles between genders, where "masculine" cultures place high value on:

Fulfillment-oriented, person-focused, highly egalitarian, and supportive of individual selfexpression and growth.

Which of the following best describes an Incubator Culture in Trompenaars' matrix?

Language fluency alone is insufficient; cultural interaction capability and contextual awareness are mandatory.

Case Scenario: A U.S. executive negotiates a major contract in Japan. The U.S. executive speaks fluent Japanese (knowing the language), but makes severe cultural errors because he misinterprets silence, violates hierarchical status protocols, and pushes for immediate transactional closing. According to Chapter 7, this illustrates that:

Face-to-face meetings, phone conversations, and direct interactive emails

Which communication channel is typically classified as a personal channel in international management?

Reports, formal budgets, and written strategic plans

Impersonal channels of communication in international business include:

Often produce better economic results in certain bargaining cultures, though heavily influenced by cultural norms.

When bargaining in the global arena, research shows that extreme initial positions and high tension (promises and threats):

Being culturally prepared, remaining calm, and utilizing structured counter-tactics rather than reacting emotionally.

What is a recommended counter-tactic when dealing with unexpected aggressive bargaining behaviors or silence in cross-cultural negotiations?

It possesses rich natural resources and growing FDI, but faces challenges from political instability, infrastructure deficits, and immense linguistic/tribal diversity

Which of the following is true regarding sub-Saharan Africa's economic development and business environment?

Growing exports, multidomestic markets, and a polycentric perspective.

The phase of an international corporation (Phase II) is characterized by:

Nongovernmental organizations (NGOs), consumers, investors, and governments.

In the context of corporate social responsibility (CSR), stakeholders who pressure firms to behave responsibly include:

Environmental quality standards and minimizing ecological footprint

What does the ISO 14000 standard focus on?

The realization that natural resource depletion will eventually halt production, alongside increasing stakeholder and NGO pressure.

The concept of sustainability in modern global business is driven by:

Patience, relationship-building, personal warmth, and physical proximity are core cultural norms in Brazil that differ from Germanic linear efficiency.

Case Scenario: A German multinational manufacturing firm opens a plant in Brazil. The German managers complain that Brazilian businesspeople arrive late, focus heavily on personal socializing before discussing business, and touch arms during conversation. Understanding Brazilian business culture teaches managers that:

Fair, altruistic, friendly, generous, and caring behavior toward others.

In GLOBE's cultural dimensions, Humane Orientation encourages and rewards:

The extent to which members of a society rely on social norms, rules, and procedures to alleviate unpredictability

Which of the following best characterizes Uncertainty Avoidance in cultural frameworks?

Members bring preconceived stereotypes and inaccurate biases with them.

When managing cultural diversity in the workplace, what is a primary perceptual problem that can occur when diverse groups come together?

The human connection and effective cross-cultural communication, strategy, and behavioral adaptation.

Ultimately, what is the core heartbeat and foundational driver of global business success emphasized throughout the course?