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Chapter 05 - Managing Across Cultures Chapter 05 Managing Across Cultures True / False Questions 1. A company with a geocentric predisposition allows the values and interests of the parent company to guide the strategic decisions. True False 2. Firms with a polycentric predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates. True False 3. An ethnocentric predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis. True False 4. A company with a geocentric predisposition tries to integrate a global systems approach to decision making. True False 5. A firm with an ethnocentric predisposition may find it difficult to implement a geocentric strategy, because it is unaccustomed to using global integration. True False 6. A globalization imperative is a belief that one worldwide approach to doing business is the key to both efficiency and effectiveness. True False 5-1
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Chapter 05 - Managing Across Cultures 7. The difficulty of managing global organizations, as in the case of some local subsidiaries that want more decentralization and others that want less is one of the factors helping to facilitate the need for MNCs to develop unique strategies for different cultures. True False 8. Advertising in the United States should be indirect and subtle, emphasizing group references, shared responsibility and interpersonal trust. True False 9. Parochialism is the tendency to view the world through one's own eyes and perspectives. True False 10. Simplification is the process of exhibiting the same orientation toward different cultural groups. True False 11. If a U.S. manager interacts with a Chinese manager in the same way that he or she interacts with a Canadian manager, the U.S. manager is demonstrating a behavioral attribute referred to as singular-orientation. True False 12. In America, authority is diffused throughout the bureaucratic system and personal responsibility is hard to pin down. True False 13. When internationalization began to gain momentum, there was a hope that many of the procedures and strategies that worked so well at home could be adopted overseas without modification. True False 5-2
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Chapter 05 - Managing Across Cultures 14. In Japan, compensation levels are determined by using skill, ability and performance. True False 15. In Japan, people often are hired based on what they can do for the firm in the short run, because many of them eventually will quit or be downsized. True False 16. In Japan, unions are regarded as adversaries of management; in the United States, unions and managers are seen as partners. True False
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