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International Management, 8e (Deresky)

Chapter 5 Cross-Cultural Negotiation and Decision Making

1) Which of the following terms refers to the process by which two or more parties meet to try to
reach an agreement regarding conflicting interests?
A) polarization
B) social loafing
C) globalization
D) negotiation
Answer: D
Diff: 1
Chapter: 5
Skill: Concept
Objective: 1
AACSB: Communication abilities

2) Which of the following is most likely to be a reason for ineffective international business
negotiations?
A) differences in cultural values and problem-solving techniques
B) highly restrictive government legislations
C) lack of socializing with the opposite party
D) lack of nonverbal communication
Answer: A
Diff: 2
Chapter: 5
Skill: Concept
Objective: 1
AACSB: Communication abilities

3) For long-term positive relations, the goal of negotiation should most likely be to ________.
A) establish clear objectives of the parties involved
B) reach a settlement that benefits all parties
C) establish a clear line of communication
D) avoid nonverbal communication
Answer: B
Diff: 1
Chapter: 5
Skill: Concept
Objective: 1
AACSB: Communication abilities

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Copyright © 2014 Pearson Education, Inc.
4) A French businessman has a meeting scheduled with a Brazilian to negotiate terms of a joint
venture. The Frenchman prepares for the meeting in the way he always does when negotiating
with French firms. The Frenchman assumes that the Brazilian will perceive and reason the way
he does. Which of the following terms best describes the Frenchman's mistake?
A) cognitive dissonance
B) moral idealism
C) parochialism
D) projective cognitive similarity
Answer: D
Diff: 1
Chapter: 5
Skill: Application
Objective: 1
AACSB: Communication abilities

5) Which aspect of the negotiation process will most likely occur on a continuous basis?
A) persuasion
B) relationship building
C) preparation
D) concessions and agreement
Answer: B
Diff: 1
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

6) Which of the following is one of the stages in the negotiation process?


A) preparation
B) link building
C) feedback
D) orientation
Answer: A
Diff: 1
Chapter: 5
Skill: Concept
Objective: 1
AACSB: Communication abilities

2
Copyright © 2014 Pearson Education, Inc.
7) Which of the following statements is true regarding a negotiation process?
A) The negotiation process consists of six different stages.
B) The stages of the negotiation process are distinctly separate.
C) The concession and agreement stage typically occurs before the preparation stage.
D) The cultural norms of the place determine the order of the negotiation process stages.
Answer: D
Diff: 2
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

8) When preparing for cross-cultural negotiations, managers should first evaluate their own
negotiation styles in order to ________.
A) understand the reasons for failing or succeeding in domestic negotiations
B) determine how they differ from the norm in other countries
C) analyze the various stages of the negotiation process
D) assess all social and cognitive influences
Answer: B
Diff: 2
Chapter: 5
Skill: Concept
Objective: 1
AACSB: Communication abilities

9) Which of the following variables is LEAST relevant to the profile of an opposing party in a
cross-cultural negotiation?
A) bases of trust
B) value and uses of time
C) risk-taking propensity
D) location of the negotiation
Answer: D
Diff: 2
Chapter: 5
Skill: Concept
Objective: 1
AACSB: Communication abilities

3
Copyright © 2014 Pearson Education, Inc.
10) ________ is the process of getting to know one's contacts in a host country and building
mutual trust before embarking on business discussions and transactions.
A) Exchange of task-related information
B) Relationship building
C) Conflict management
D) Persuasion
Answer: B
Diff: 1
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

11) One of the primary purposes of relationship building during the negotiation process is to
________.
A) build mutual trust
B) create formal contracts
C) exchange task-related information
D) avoid direct confrontations
Answer: A
Diff: 2
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

12) What forms the basis for the enforcement of most business contracts in Mexico and China?
A) legal systems
B) scientific research
C) personal commitments to individuals
D) international regulations
Answer: C
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

4
Copyright © 2014 Pearson Education, Inc.
13) In the negotiation process, participation in social events, tours, ceremonies, and informal
conversation is a characteristic of the ________ stage.
A) preparation
B) information exchange
C) relationship building
D) concessions and agreement
Answer: C
Diff: 1
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

14) Which of the following aspects of negotiating is most closely associated with nontask
sounding?
A) relationship building
B) information exchange
C) persuasion
D) final agreement stage
Answer: A
Diff: 1
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

15) Which of the following terms refers to general, polite conversation and informal
communication before meetings?
A) nontask sounding
B) cultural noise
C) kinesics behavior
D) nonverbal behavior
Answer: A
Diff: 1
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

5
Copyright © 2014 Pearson Education, Inc.
16) Which of the following serves as a bridge from relationship building to the more formal
stages of negotiating?
A) mediating
B) posturing
C) conceding
D) evaluating
Answer: B
Diff: 1
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

17) From an American perspective, the ________ stage of negotiation is straightforward,


objective, efficient, and direct.
A) relationship building
B) exchanging task-related information
C) nonverbal communication
D) motivation
Answer: B
Diff: 2
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

18) During the exchange of task-related information, who among the following people would
most likely ask many questions of their counterparts, delve specifically and repeatedly into the
details at hand, and provide only vague and ambiguous material during a presentation?
A) Chinese
B) Arabs
C) Americans
D) Mexicans
Answer: A
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

6
Copyright © 2014 Pearson Education, Inc.
19) Which of the following cultural groups enjoys debate and conflicts and will often interrupt
presentations to argue about an issue even if it has little relevance to the topic being presented?
A) Mexicans
B) French
C) Arabs
D) Chinese
Answer: B
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

20) Yu Fei, a negotiator for Tama Inc., has a conference with an American competitor's officials.
Her seniors advise her to completely understand the Americans' viewpoint during the conference.
Which of the following benefits will be most likely achieved by Yu Fei if she listens to her
seniors' advice?
A) It will help Yu Fei fine tune her listening skills and help point out loopholes.
B) It will encourage Yu Fei to assess a wide range of alternatives for a resolution.
C) It will motivate Yu Fei to adapt to the negotiation style of the Americans.
D) It will help Yu Fei to delve specifically and repeatedly into the details at hand.
Answer: B
Diff: 3
Chapter: 5
Skill: Application
Objective: 2
AACSB: Analytic skills

21) According to Adler, in order to understand the perspectives of both sides and to prepare for
meetings effectively, a negotiator must ________.
A) avoid the use of nonverbal communication
B) engage in lengthy, evasive conversations
C) practice role reversal
D) avoid direct conflicts
Answer: C
Diff: 2
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

7
Copyright © 2014 Pearson Education, Inc.
22) During which stage of the negotiations process does hard bargaining begin?
A) persuasion
B) relationship building
C) information gathering
D) agreement
Answer: A
Diff: 1
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

23) In the Far East, details are likely to be worked out ahead of time through the "backdoor"
approach. Which of the following terms refers to this approach?
A) mottainai
B) lien
C) guanxi
D) houmani
Answer: D
Diff: 2
Chapter: 5
Skill: Concept
Objective: 3

24) In the American culture, which of the following is most likely to be considered a "dirty trick"
during cross-cultural negotiations?
A) establishing personal relationships
B) deliberately distorting facts
C) hard bargaining
D) exchanging irrelevant information
Answer: B
Diff: 2
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Multicultural and diversity understanding

8
Copyright © 2014 Pearson Education, Inc.
25) In the American culture, which of the following is most likely considered a rough tactic used
during negotiations?
A) confrontations during conflicts
B) use of emotional appeals
C) informal seating arrangement
D) uncomfortable room temperatures
Answer: D
Diff: 2
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Multicultural and diversity understanding

26) Which of the following stages of negotiations is most likely to take place immediately after
the exchange of task-related information?
A) relationship building
B) persuasion
C) preparation
D) concessions and agreement
Answer: B
Diff: 1
Chapter: 5
Skill: Concept
Objective: 2

27) Which of the following is most likely a subtle and complex behavior that makes cross-
cultural negotiations difficult?
A) developing goals of negotiation
B) nonverbal communication
C) exchanging objective information
D) employing information technology
Answer: B
Diff: 2
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

9
Copyright © 2014 Pearson Education, Inc.
28) Which of the following is most likely the last stage of negotiation?
A) analysis of an opponent's position
B) relationship building
C) concessions and agreement
D) training
Answer: C
Diff: 1
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

29) Research in the United States indicates that during the final stage of negotiations, it is best to
start with ________.
A) extreme positions
B) a holistic approach
C) relationship building
D) finalized formal contracts
Answer: A
Diff: 1
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Multicultural and diversity understanding

30) In which of the following countries do people typically begin the concessions and agreement
stage of negotiation with what they are prepared to accept rather than take extreme positions?
A) China
B) Sweden
C) Russia
D) U.S.
Answer: B
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

10
Copyright © 2014 Pearson Education, Inc.
31) Which of the following is most likely to be true about negotiators in the Far East?
A) Negotiators avoid building informal relationships.
B) Negotiators approach issues in a holistic manner, deciding on the whole deal at the end.
C) Negotiators begin the discussions by pointing out proposals that they are prepared to accept.
D) Negotiators are particular about formal contracts and insist on specific clauses.
Answer: B
Diff: 2
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Multicultural and diversity understanding

32) The method of using extreme positions during the concessions and agreement stage of
negotiation involves ________.
A) careful timing of the disclosure of information and concessions
B) approaching the issue in a holistic manner
C) general and polite conversation to socialize
D) building mutual trust before embarking on business discussions
Answer: A
Diff: 2
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

33) Which of the following cultures views formal contracts as insulting and wasteful, and prefers
to make agreements based on mutual understanding and trust?
A) Swedes
B) Japanese
C) Russians
D) Americans
Answer: B
Diff: 1
Chapter: 5
Skill: Concept
Objective: 6
AACSB: Multicultural and diversity understanding

11
Copyright © 2014 Pearson Education, Inc.
34) In the ________ culture, negotiators tend to use the word "no" repeatedly, and they are best
described as spontaneous and talkative.
A) Brazilian
B) Arabian
C) American
D) Japanese
Answer: A
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

35) Which of the following is true about Japanese negotiators?


A) Personal benefit is the ultimate aim of the Japanese negotiators.
B) Japanese negotiators are often impulsive and make decisions spontaneously.
C) Japanese negotiators are outwardly expressive and take conflicts personally.
D) Japanese negotiators are calm and patient, and accustomed to long, detailed negotiating
sessions.
Answer: D
Diff: 2
Chapter: 5
Skill: Concept
Objective: 6
AACSB: Multicultural and diversity understanding

36) Japanese negotiators tend to ________.


A) lack emotional sensitivity
B) be argumentative
C) hide emotions
D) lack commitment to their employers
Answer: C
Diff: 2
Chapter: 5
Skill: Concept
Objective: 6
AACSB: Multicultural and diversity understanding

12
Copyright © 2014 Pearson Education, Inc.
37) Which of the following is a similarity between the negotiation styles of both North
Americans and Latin Americans?
A) They highly value emotional sensitivity.
B) They display strong commitment to their employers.
C) They give great importance to documentation.
D) They tend to be argumentative when they think they are right.
Answer: D
Diff: 2
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

38) ________ are based on what North Americans believe is objective information, presented
with the assumption that it is understood by the other side on a logical basis.
A) Factual appeals
B) Affective appeals
C) Axiomatic appeals
D) Nonverbal messages
Answer: A
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

39) Which of the following types of appeals, typically used by Arabs, is based on emotions and
subjective feelings?
A) factual appeals
B) affective appeals
C) axiomatic appeals
D) virtual appeals
Answer: B
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

13
Copyright © 2014 Pearson Education, Inc.
40) Axiomatic appeals are generally based on ________.
A) socially accepted ideals
B) level of loyalty
C) subjective feelings
D) objective information
Answer: A
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Communication abilities

41) Which of the following is true about the negotiating tactics used by the Russians?
A) They are quick decision makers.
B) They believe that "time is money."
C) They stall for time.
D) They are outwardly expressive.
Answer: C
Diff: 2
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

42) Arab negotiators will most likely make concessions because of their interest in ________.
A) saving valuable time
B) preventing embarrassment
C) forming long-term relationships
D) creating a good first impression
Answer: C
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

14
Copyright © 2014 Pearson Education, Inc.
43) Which of the following behaviors is NOT consistent with Casse's profile of successful
American negotiators?
A) refuses to make concessions in advance
B) exhibits a good sense of timing
C) never compromises
D) understands the issues
Answer: C
Diff: 2
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

44) According to Pierre Casse, which of the following is a typical characteristic of a successful
Indian negotiator?
A) never changes his or her mind
B) lacks patience
C) uses trade secrets to strengthen his position
D) stays humble and trusts the opponent
Answer: D
Diff: 2
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

45) According to Pierre Casse, Arab negotiators ________.


A) are able to resist any kind of pressure
B) prefer short-term relationships to long-term relationships
C) confront opponents directly and openly
D) do not use conferences as mediating devices
Answer: A
Diff: 2
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

15
Copyright © 2014 Pearson Education, Inc.
46) According to Pierre Casse, which of the following is a typical characteristic of a Swedish
negotiator?
A) inflexible
B) down to earth and overcautious
C) inefficient
D) confronts openly and directly
Answer: B
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

47) Which of the following is true about Arab negotiators?


A) Arab negotiators do not use conferences as mediating devices.
B) Arab negotiators generally use factual rather than affective appeals.
C) Arab negotiators prefer short-term relationships to long-term relationships.
D) Arab negotiators use mediators to settle disputes.
Answer: D
Diff: 2
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

48) Which of the following terms refers to the nature and appearance of the relationship between
the people pursuing common goals in a negotiation?
A) software of negotiation
B) diplomacy of negotiation
C) objectivity of negotiation
D) transparency of negotiation
Answer: A
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

16
Copyright © 2014 Pearson Education, Inc.
49) Using a problem-solving approach during cross-cultural negotiations requires a negotiator to
________.
A) reduce the amount of specific details and facts
B) avoid focusing on long-term issues
C) make frequent counterproposals
D) avoid criticizing the other party in a personal way
Answer: D
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

50) A negotiation support system provides support to the negotiation process by ________.
A) increasing the likelihood that an agreement is reached when a zone of agreement exists
B) increasing the ability to communicate nonverbally
C) increasing costs associated with time delays
D) increasing the fees paid to the attorneys
Answer: A
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Communication abilities

51) According to the research conducted by Tung et al., which of the following cities in China
has people who are business-savvy, confident, career-oriented, and materialistic?
A) Beijing
B) Chengdu
C) Shanghai
D) Guangzhou
Answer: C
Diff: 1
Chapter: 5
Skill: Concept
Objective: 4
AACSB: Multicultural and diversity understanding

17
Copyright © 2014 Pearson Education, Inc.
52) According to the research conducted by Tung et al., people in ________ are bureaucratic,
educated, diversified, highly relationship-oriented, and more direct.
A) Shenzhen
B) Shanghai
C) Beijing
D) Guangzhou
Answer: C
Diff: 1
Chapter: 5
Skill: Concept
Objective: 4
AACSB: Multicultural and diversity understanding

53) Business people report two major areas of conflict in negotiating with the Chinese––their
apparent insincerity about reaching an agreement and ________.
A) their unwillingness to develop relationships beyond a superficial level
B) their insistence on a compromise whenever progress becomes difficult
C) the amount of details desired about product characteristics
D) the use of bureaucratic mechanisms to stall negotiations
Answer: C
Diff: 1
Chapter: 5
Skill: Concept
Objective: 4
AACSB: Multicultural and diversity understanding

54) Which of the following cultural norms greatly affects the negotiation process for the
Chinese?
A) ingrained politeness and emotional restraint
B) emphasis on impersonal relationships
C) belief in explicit and direct approach
D) tendency to approach conflicts directly
Answer: A
Diff: 1
Chapter: 5
Skill: Concept
Objective: 4
AACSB: Multicultural and diversity understanding

18
Copyright © 2014 Pearson Education, Inc.
55) In Chinese culture, the term ________ refers to a person's moral character; it is the most
important thing defining that person and without it, one cannot function in society.
A) mien-tzu
B) lien
C) guanxi
D) houmani
Answer: B
Diff: 1
Chapter: 5
Skill: Concept
Objective: 4

56) Linda, the operations executive for Tango, is asked to travel to China in order to set up a new
operational facility. When negotiating with the Chinese investors, Linda should ________.
A) be direct and explicit when conveying information , as time is of immense value
B) be focused on establishing long-term, trusting relationships, even at the expense of some
immediate returns
C) be aggressive
D) be quick in decision making and confront problems directly
Answer: B
Diff: 3
Chapter: 5
Skill: Application
Objective: 4
AACSB: Multicultural and diversity understanding

57) Which of the following best defines guanxi?


A) personal reputation
B) common group goals
C) network of personal relations
D) unacceptable negotiating tactics
Answer: C
Diff: 1
Chapter: 5
Skill: Concept
Objective: 4
AACSB: Multicultural and diversity understanding

19
Copyright © 2014 Pearson Education, Inc.
58) Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to
enter the global market, and they are considering the idea of a joint venture with a beverage
company located overseas. After conducting research on different beverage firms, Fizzy
executives selected a large beverage manufacturer located in China. Kevin Burns and three other
top-level executives at Fizzy have been assigned to the negotiating team. The team recently
arrived in China to negotiate the details of the joint venture.

Which of the following, if true, strengthens the argument that Kevin should make token
concessions to the Chinese throughout the negotiation process?
A) Fizzy executives hope to have other business deals with the Chinese firm in the future.
B) Fizzy executives want to demonstrate their aggressiveness and present factual appeals.
C) Fizzy executives want to ensure compliance with the ringi system at the Chinese firm.
D) Fizzy executives are not certain as to who has decision-making authority at the Chinese firm.
Answer: A
Diff: 3
Chapter: 5
Skill: Application
Objective: 4
AACSB: Analytic skills

59) Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to
enter the global market, and they are considering the idea of a joint venture with a beverage
company located overseas. After conducting research on different beverage firms, Fizzy
executives selected a large beverage manufacturer located in China. Kevin Burns and three other
top-level executives at Fizzy have been assigned to the negotiating team. The team has flown to
China to negotiate the details of the joint venture.

Which of the following, if true, strengthens the argument that Kevin should be prepared with
specific details about the product specifications and technology that will be used?
A) The Chinese firm has joint ventures with many international firms.
B) The Chinese firm is state-owned and located in Beijing.
C) The Chinese firm uses a two-stage negotiation process: the technical and the commercial.
D) The Chinese firm reportedly uses delay tactics during negotiations.
Answer: C
Diff: 3
Chapter: 5
Skill: Application
Objective: 4
AACSB: Analytic skills

20
Copyright © 2014 Pearson Education, Inc.
60) Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to
enter the global market, and they are considering the idea of a joint venture with a beverage
company located overseas. After conducting research on different beverage firms, Fizzy
executives selected a large beverage manufacturer located in China. Kevin Burns and three other
top-level executives at Fizzy have been assigned to the negotiating team. The team has flown to
China to negotiate the details of the joint venture.

Which of the following best supports Kevin's argument that he should be the primary negotiator?
A) Kevin has an aggressive and explicit attitude.
B) Kevin leads all negotiations with domestic U.S. firms.
C) Kevin is the oldest and the most experienced person on the negotiating team.
D) Kevin has full knowledge of guanxi; therefore, he should lead the team.
Answer: C
Diff: 3
Chapter: 5
Skill: Application
Objective: 4
AACSB: Analytic skills

61) What are the two negotiation stages that Americans should expect when negotiating with the
Chinese?
A) informational and agreement
B) gift-exchange and socializing
C) propositions and marketing
D) technical and commercial
Answer: D
Diff: 1
Chapter: 5
Skill: Concept
Objective: 4
AACSB: Multicultural and diversity understanding

62) Which of the following is a common Chinese tactic used during negotiations with
Americans?
A) refusing to answer the Americans' inquiries
B) suggesting that the Americans are reneging on their friendship
C) refusing to compromise until the last possible moment
D) asking for concessions relating to product cost and delivery time
Answer: B
Diff: 2
Chapter: 5
Skill: Concept
Objective: 4
AACSB: Multicultural and diversity understanding

21
Copyright © 2014 Pearson Education, Inc.
63) The ________ approach to conflict is being used when both parties negotiate on the basis of
factual information and logical analysis.
A) instrumental-oriented
B) expressive-oriented
C) affective-oriented
D) individual-oriented
Answer: A
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Communication abilities

64) Which of the following approaches to conflict involves handling the situation indirectly and
implicitly without clear delineation of the situation from the person handling it?
A) instrumental-oriented
B) expressive-oriented
C) objective-oriented
D) problem-oriented
Answer: B
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Communication abilities

65) Which of the following is a part of the rational decision-making process?


A) background check on individuals involved in decision-making
B) gathering and analyzing relevant data
C) comparison of competitor products
D) marketing the respective products or services
Answer: B
Diff: 1
Chapter: 5
Skill: Concept
Objective: 5
AACSB: Communication abilities

22
Copyright © 2014 Pearson Education, Inc.
66) Research shows that managers from ________ have the highest tolerance for risk.
A) America
B) Germany
C) Belgium
D) Austria
Answer: A
Diff: 1
Chapter: 5
Skill: Concept
Objective: 5
AACSB: Multicultural and diversity understanding

67) American managers believe strongly in self-determination and perceive problem situations as
something they can change. This shows that they ________.
A) belong to a high-context culture
B) believe in socialism
C) have internal locus of control
D) belong to a high power distance culture
Answer: C
Diff: 1
Chapter: 5
Skill: Concept
Objective: 5
AACSB: Multicultural and diversity understanding

68) Which of the following types of decision making is generally used in China, Germany,
Turkey, and India?
A) participative
B) autocratic
C) totalitarian
D) theocratic
Answer: B
Diff: 1
Chapter: 5
Skill: Concept
Objective: 5
AACSB: Multicultural and diversity understanding

23
Copyright © 2014 Pearson Education, Inc.
69) In Japanese culture, the term ________ refers to a process which involves gaining approval
on a proposal by circulating documents to those concerned throughout the company. It usually
comprises four steps: proposal, circulation, approval, and record.
A) nemawashi
B) kaizen
C) shinyo
D) ringi
Answer: D
Diff: 1
Chapter: 5
Skill: Concept
Objective: 6
AACSB: Multicultural and diversity understanding

70) Which of the following is a typical characteristic of a Japanese work group?


A) open expression of conflicts
B) decision making based on a patient, long-term perspective
C) lack of cooperation
D) lack of mutual confidence
Answer: B
Diff: 1
Chapter: 5
Skill: Concept
Objective: 6
AACSB: Multicultural and diversity understanding

71) The term "polarization" describes the process of discussion by which two or more parties aim
to reach a mutually acceptable agreement.
Answer: FALSE
Diff: 1
Chapter: 5
Skill: Concept
Objective: 1
AACSB: Communication abilities

72) The relationship-building process during negotiation is over as soon as a negotiator is done
exchanging task-related information.
Answer: FALSE
Diff: 2
Chapter: 5
Skill: Concept
Objective: 1
AACSB: Communication abilities

24
Copyright © 2014 Pearson Education, Inc.
73) Mediators are hired in order to teach managers about cultural differences in negotiating
styles.
Answer: FALSE
Diff: 2
Chapter: 5
Skill: Concept
Objective: 1
AACSB: Communication abilities

74) Relationship building is the process of getting to know one's contacts in a host country and
building mutual trust before embarking on business discussions and transactions.
Answer: TRUE
Diff: 1
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

75) Nontask sounding involves general, polite conversation and informal communication before
meetings.
Answer: TRUE
Diff: 1
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

76) Middle Easterners avoid hiring mediators, as they cannot deal with direct conflicts.
Answer: FALSE
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

77) During exchange of task-related information, Mexicans tend to be direct and avoid engaging
in lengthy, evasive conversation.
Answer: FALSE
Diff: 2
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Multicultural and diversity understanding

25
Copyright © 2014 Pearson Education, Inc.
78) Uncomfortable room temperatures, too-bright lighting, rudeness, interruptions, and other
irritations are examples of rough tactics used during negotiations.
Answer: TRUE
Diff: 2
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

79) During the stage of concessions and agreement, Russians and Chinese generally take extreme
positions.
Answer: TRUE
Diff: 1
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Multicultural and diversity understanding

80) Negotiators in the Far East address issues one at a time, in a linear fashion.
Answer: FALSE
Diff: 2
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Multicultural and diversity understanding

81) Americans are calm, quiet, patient negotiators; they are accustomed to long, detailed
negotiating sessions.
Answer: FALSE
Diff: 2
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

82) Fundamental to Japanese culture is a concern for the welfare of the group; anything that
affects one member or part of society affects the others.
Answer: TRUE
Diff: 1
Chapter: 5
Skill: Concept
Objective: 6
AACSB: Multicultural and diversity understanding

26
Copyright © 2014 Pearson Education, Inc.
83) Russians employ axiomatic appeals—that is, their appeals are based on the ideals generally
accepted in their society.
Answer: TRUE
Diff: 2
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

84) Compared to Indian negotiators, American negotiators are more likely to withdraw, use
silence, and learn from within.
Answer: FALSE
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

85) Italian negotiators have a sense of drama and do not hide their emotions.
Answer: TRUE
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

86) The term "software of negotiation" refers to the contractual terms mentioned in a written
document.
Answer: FALSE
Diff: 2
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Communication abilities

87) Negotiation support systems can provide support for the negotiation process by maximizing
the chances for optimal outcomes.
Answer: TRUE
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Communication abilities

27
Copyright © 2014 Pearson Education, Inc.
88) Since the Chinese have a preference for emotional restraint and saving face, aggressive or
emotional attempts at persuasion in negotiation are likely to fail.
Answer: TRUE
Diff: 1
Chapter: 5
Skill: Concept
Objective: 4
AACSB: Multicultural and diversity understanding

89) Risk tolerance is one of the cultural variables that greatly affects the decision-making
process.
Answer: TRUE
Diff: 1
Chapter: 5
Skill: Concept
Objective: 5
AACSB: Multicultural and diversity understanding

90) The ringi process involves gaining approval on a proposal by circulating documents to those
concerned throughout the company.
Answer: TRUE
Diff: 1
Chapter: 5
Skill: Concept
Objective: 6
AACSB: Multicultural and diversity understanding

91) What is projective cognitive similarity? How do successful negotiators avoid projective
cognitive similarity?
Answer: Projective cognitive similarity refers to the common practice of assuming that those
you are negotiating with perceive, judge, think, and reason in the same way, when in reality they
do not because of different cultural values. Successful negotiators will empathize with their
counterparts and share their own viewpoint.
Diff: 1
Chapter: 5
Skill: Concept
Objective: 1
AACSB: Communication abilities

28
Copyright © 2014 Pearson Education, Inc.
92) What is negotiation?
Answer: The word negotiation describes the process of discussion between two or more parties
aimed at reaching a mutually acceptable agreement. The goal of successful negotiation should be
to benefit all parties involved. It is a complex activity, especially in the international context,
because of differences in cultural values, lifestyles, expectations, verbal and nonverbal language,
approaches to formal procedures, and problem-solving techniques. Due to the high number of
stakeholders involved in international negotiations, the task becomes very complicated.
Diff: 1
Chapter: 5
Skill: Concept
Objective: 1
AACSB: Communication abilities

93) How does nonverbal communication affect the negotiation process?


Answer: The most subtle behaviors in the negotiation process, and often the most difficult to
deal with, are usually the nonverbal messages—the use of voice intonation, facial and body
expressions, eye contact, dress, and the timing of the discussion. Nonverbal behaviors are
ingrained aspects of culture used by people in their daily lives; they are not specifically changed
for the purposes of negotiation.
Diff: 2
Chapter: 5
Skill: Concept
Objective: 2
AACSB: Communication abilities

94) What are the main differences between Japanese and American negotiators?
Answer: The Japanese are calm, quiet, patient negotiators; they are accustomed to long, detailed
negotiating sessions. Whereas Americans often plunge straight to the matter at hand, the
Japanese instead prefer to develop long-term, personal relationships. The Japanese want to get to
know those on the other side and will spend some time in nontask sounding.
Diff: 3
Chapter: 5
Skill: Concept
Objective: 6
AACSB: Multicultural and diversity understanding

29
Copyright © 2014 Pearson Education, Inc.
95) What is the difference between affective, axiomatic, and factual appeals? Provide examples
of cultures that use each type.
Answer: For North Americans, negotiations are businesslike; their factual appeals are based on
what they believe is objective information, presented with the assumption that it is understood by
the other side on a logical basis. Arabs use affective appeals based on emotions and subjective
feelings. Russians employ axiomatic appeals—that is, their appeals are based on the ideals
generally accepted in their society.
Diff: 2
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

96) How can modern technology, such as negotiation support systems (NSS), be used to improve
the negotiating process?
Answer: NSS can provide support for the negotiation process in three ways: (1) increase the
likelihood that an agreement is reached when a zone of agreement exists; (2) decrease the direct
and indirect costs of negotiations; and (3) maximize the chances for optimal outcomes.
Diff: 1
Chapter: 5
Skill: Concept
Objective: 3

97) How is conflict during negotiations handled in high-context and low-context cultures?
Answer: In low-context cultures, such as the United States, conflict is handled directly and
explicitly. It is also regarded as separate from the person negotiating—that is, the negotiators
draw a distinction between the people involved and the information or opinions they represent.
They also tend to negotiate on the basis of factual information and logical analysis, which is
known as instrumental-oriented conflict. In high-context cultures, such as the Middle East, the
approach to conflict is called expressive-oriented conflict—that is, the situation is handled
indirectly and implicitly, without clear delineation of the situation by the person handling it.
Diff: 2
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

30
Copyright © 2014 Pearson Education, Inc.
98) What is the difference between an internal locus of control and an external locus of control?
What cultures use each type?
Answer: Some managers feel that they can plan on certain outcomes because they are in control
of events that will direct the future in the desired way. This is called internal locus of control. In
contrast, other managers believe such decisions are of no value because they have little control
over the future that lies in the hands of outside forces such as fate, God, or nature. This is called
external locus of control. American managers function with an internal locus of control whereas
managers in many other countries such as Indonesia and Malaysia do not believe they have as
much control over events.
Diff: 3
Chapter: 5
Skill: Concept
Objective: 5
AACSB: Multicultural and diversity understanding

99) Describe the process of decision making that is common in Japanese companies.
Answer: Japanese decision making is a very participative process, characterized by an elaborate
and formal system for achieving consensus and agreement among everyone affected by a
particular decision. This system, called the ringi system, works from the bottom up in contrast
with the American centralized decision-making process, which takes a top-down approach. The
ringi process consists of four steps: proposal, circulation, approval, and record.
Diff: 1
Chapter: 5
Skill: Concept
Objective: 6
AACSB: Multicultural and diversity understanding

100) In what ways might the American style of negotiation be misinterpreted in another culture?
Answer: The American's desire to get down to business quickly might be interpreted as a lack of
concern for rigorous process or a lack of concern for relationship building. The American
rational (unemotional) style might be misperceived as showing a lack of commitment. The
emphasis on time might misinterpreted as a rough tactic—attempting to pressure the other team
into making a decision too quickly or before consensus has been reached.
Diff: 2
Chapter: 5
Skill: Concept
Objective: 3
AACSB: Multicultural and diversity understanding

31
Copyright © 2014 Pearson Education, Inc.

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