CHAPTER 5

In the context of the smartphone industry, which of the following helps

QN=21 Apple differentiate itself from its competitors?
a. Product innovation
b. Low-cost strategy
c. Group achievement
d. Collective approach to design
ANSWER: A
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A company with a(n) _____ predisposition tries to integrate a global

QN=22 systems approach to decision making.
a. ethnocentric
b. polycentric
c. geocentric
d. regiocentric
ANSWER: C
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Firms with a(n) _____ predisposition make strategic decisions tailored to

QN=23 suit the cultures of the countries where the MNC operates.
a. polycentric
b. ethnocentric
c. regiocentric
d. geocentric
ANSWER: A
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_____ is a belief that one worldwide approach to doing business is the

QN=24 key to both efficiency and effectiveness.
a. International complacency
b. Globalization imperative
c. Worldwide indifference
d. Cross-cultural contentment
ANSWER: B
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QN=25 Firms with a geocentric predisposition have a _____ culture.

a. home country
b. global
c. host country
d. regional
ANSWER: B
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Which of the following countries prefers advertising that is factual and

QN=26 rational?
a. India
b. China
c. Germany
d. France
ANSWER: C
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Which of the following is a factor that is moving companies to facilitate

QN=27 the development of unique strategies for different cultures?
a. The lack of diversity of worldwide industry standards
b. A continual demand by local customers for differentiated products
c. The importance of being an outsider
The need to restrain subsidiaries from using their own abilities and
d. talents
ANSWER: B
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QN=28 Which of the following is a characteristic of a high-context culture?

a. Deep personal involvement with others is not valued greatly.
Individuals are taught from a very early age to say exactly what they
b. mean.
c. Insiders and outsiders are not readily distinguishable.
d. Agreements tend to be spoken rather than written.
ANSWER: D
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Identify an accurate statement about the link between cultural clusters

QN=29 and compensation strategies.
In high-masculinity cultures, high salaries should be paid to senior-level
a. managers.
b. In Pacific Rim countries, incentive plans should be individual-based.
In countries that have a high individualism index, profit-sharing plans are
c. highly effective.
d. In Great Britain, managers value collectivism.
ANSWER: A
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QN=30 Malaysia has what could be called a _____.

a. moderate-context culture
b. low-context culture
c. variable-context culture
d. high-context culture
ANSWER: D
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QN=31 The five criteria in the acronym HAIRL stood for _____.
a. helicopter, analysis, imagination, reality, and leadership
b. hierarchy, awareness, ingenuity, reverie, and leadership
c. helicopter, action, interest, reality, and leadership
d. hierarchy, action, ingenuity, reverie, and leadership
ANSWER: A
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A partially completed contingency matrix for international human

resource management shows that recruitment and selection processes
QN=32 in Mexico should _____.
encourage use of sophisticated selection procedures based on recent
a. public policy shifts
use expatriates sparingly and recruit home country nationals at U.S.
b. colleges
obtain skilled labor from government subsidized apprenticeship
c. program
prepare for a long process; ensure that your firm is "here to stay"; and
d. develop trusting relationship with recruits
ANSWER: B
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A partially completed contingency matrix for international human

resource management for labor relations shows that firms doing
QN=33 business in China should _____.
a. treat unions as partners and allow time for negotiations
tap the large pool of labor in cities and be prepared that lax labor laws
b. may become more stringent
understand changing Chinese labor law and prepare for increasing
c. unionization of labor
be prepared for high wages and short workweek and expect high
d. productivity from unionized workers
ANSWER: B
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A partially completed contingency matrix for international human

resource management for labor relations shows that firms doing
QN=34 business in Germany should _____.
a. treat unions as partners and allow time for negotiations
tap the large pool of labor in cities and be prepared that lax labor laws
b. may become more stringent
c. be prepared for high wages and short workweek and expect high
 productivity from unionized workers
understand changing German labor law and prepare for increasing
d. unionization of labor
ANSWER: C
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QN=35 Which of the following statements is true about French workers?

a. They are known to have an intense work ethic.
b. They have a reputation for high productivity.
c. They are willing to sacrifice their leisure time.
d. They derive motivation from professional accomplishment.
ANSWER: B
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Experienced travelers report that the primary criterion for doing

QN=36 business in China is _____.
a. a persuasive top management
b. savvy marketing
c. technical competence
d. hard currency
ANSWER: C
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QN=37 In practice, guanxi resembles _____.

a. nepotism
b. individualism
c. commercialism
d. parochialism
ANSWER: A
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 Which of the following cultures is characterized by a universal method
of greeting an equal by pressing one's palms together in front of the
QN=38 chest and saying, "namaste"?
a. The Russian culture
b. The Indian culture
c. The Arabian culture
d. The Brazilian culture
ANSWER: B
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Many in the United States believe that it is more difficult to get along
QN=39 with the _____ than with other Europeans.
a. Germans
b. Austrians
c. Spanish
d. French
ANSWER: D
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Which of the following cultural characteristics should be kept in mind

QN=40 when conducting business in Russia?
a. Building personal relationships with partners is important.
Giving gifts to those with whom one wants to transact business is
b. regarded as bribery.
Business laws and contracts are given a lot of importance when
c. compared to the West.
d. Compromising or settling things quickly is seen as a sign of strength.
ANSWER: A
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Which of the following results can occur when a negotiation becomes

QN=159 derailed?
a. The parties share interests and opinions.
b. Perceptions become distorted and judgments are biased.
c. Integrative negotiation is effectively used by both parties.
d. The parties maintain open lines of communication.
ANSWER: C
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QN=160 Role reversal __________.

a. is applicable and useful only in integrative bargaining situations.
b. is only useful in sharpening the differences between actual positions.
c. gives negotiators a chance to correct specific misperceptions.
gives the negotiator inside information about the opposing negotiator's
d. strategy.
ANSWER: C
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Which of the following lists the stages of the perceptual process in the
QN=221 correct order?
a. stimulus, translation, attention, recognition, behavior
b. stimulus, behavior, translation, attention, recognition
c. stimulus, attention, recognition, translation, behavior
d. behavior, stimulus, recognition, attention, translation
ANSWER: C
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QN=222 Halo effects occur when

attributes are assigned to an individual solely on the basis of his or her
a. membership in a particular social or demographic group.
people generalize about a variety of attributes based on the knowledge
b. of one attribute of an individual.
the perceiver singles out certain information that supports or reinforces
a prior belief, and filters out information that does not confirm that
c. belief.
people ascribe to others the characteristics or feelings that they possess
d. themselves.
ANSWER: B
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QN=223 Projection occurs when

attributes are assigned to an individual solely on the basis of his or her
a. membership in a particular social or demographic group.
people generalize about a variety of attributes based on the knowledge
b. of one attribute of an individual.
the perceiver singles out certain information that supports or reinforces
a prior belief, and filters out information that does not confirm that
c. belief.
people ascribe to others the characteristics or feelings that they possess
d. themselves.
ANSWER: D
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QN=224 Frames are important in negotiation because

a. they allow parties to develop separate definitions of the issues
b. they can be avoided
c. disputes are often nebulous and open to different interpretations
do not allow negotiators to articulate an aspect of a complex social
d. situation
ANSWER: C
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In which type of frame would parties be more likely to engage primarily

QN=225 in distributive (win-lose or lose-lose) negotiations than in other types?
a. Identity
b. Loss-gain
c. Outcome
d. Process
ANSWER: C
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QN=226 An insight drawn from research of the frames negotiators use in

 disputes would suggest that parties discussing salary may be likely to
use outcome frames and may be related to which of the following.
a. Negotiators can use more than one frame.
b. Mismatches in frames between parties are sources of conflict.
c. Particular types of frames may led to particular types of agreements.
d. Specific frames may be likely to be used with certain types of issues.
ANSWER: D
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QN=227 The irrational escalation of commitment bias refers to

the standard against which subsequent adjustments are measured
a. during negotiation.
the perspective or point of view that people use when they gather
b. information and solve problems.
how easily information can be recalled and used to inform or evaluate a
c. process of a decision.
a negotiator's commitment to a course of action, even when that
d. commitment constitutes irrational behavior on his/her part.
ANSWER: D
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The availability of information bias operates with which of the following

QN=228 statements?
when negotiators sometimes maintain commitment to a course of
action even when that commitment constitutes irrational behavior on
a. their part.
when thorough preparation, along with the use of a devil’s advocate or
b. reality check, can help prevent errors.
when information that is presented in vivid, colorful, or attention-getting
ways becomes easy to recall, and thus also becomes central and critical
c. in evaluating events and options.
when the tendency of negotiators to believe that their ability to be
d. correct or accurate is greater than is actually true
ANSWER: C
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 Which of the following cognitive biases can lead negotiators to discount
QN=229 the worth or validity of the judgment of others?
a. Mythical fixed-pie beliefs
b. Anchoring and adjustment
c. Availability of information
d. Overconfidence
ANSWER: D
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QN=230 The Endowment Effect

a. is making attributions to the person or the situation
b. is drawing conclusions from small sample sizes
is negotiators believing that their ability to be correct or accurate is
c. greater than actually true
d. is the tendency to overvalue something you own or believe you possess
ANSWER: D
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The distinction between mood and emotion is based on which of the

QN=231 following characteristics?
a. specificity
b. intensity
c. duration
d. specificity, intensity and duration
ANSWER: D
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QN=232 Negative emotions may lead parties to

a. more integrative processes
b. escalate the conflict
c. promote persistence
d. define the situation as integrative
ANSWER: B
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Which of the following statements about how emotion plays a part in

QN=233 negotiation is accurate?
a. Negotiations only create negative emotions.
b. Positive feelings do not promote persistence.
c. Negative feelings may create positive outcomes.
d. Positive emotion may result from impasse.
ANSWER: C
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QN=238 At the top of the best practice list for every negotiator is
a. managing coalitions.
b. diagnosing the structure of the negotiation.
c. remembering the intangibles.
d. preparation.
ANSWER: 4
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What are the most dominant contributors to breakdowns and failures in

QN=275 negotiation?
a. failures and distortions in perception, meaning, and feedback
b. failures and distortions in perception, feedback, and behaviors
c. failures and distortions in perception, communication, and framing
d. failures and distortions in perception, cognition, and communication.
ANSWER: D
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Researchers have found that expressing high anger and low compassion
QN=276 toward another led the negotiators to
a. a greater desire to work together in the future.
b. achieve more joint gains.
c. find and explore commonalties in experience.
d. an unaffected ability to yield greater individual gains.
ANSWER: D
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QN=300 The concept of criticality in a communication network involves

the degree to which the key individual can exercise discretion in how
a. certain decisions are made or who gains access.
b. how visible the task performance is to others in the organization.
the amount of information that passes through a node, the number of
transactions that occur through the node, or the degree to which the
c. node is central to managing information.
the essentiality of the information that flows through the node to the
d. organization's mission, major task, or key product.
ANSWER: D
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