Question 1

The Chinese economy has passed that of the United States in size, measured by GDP, or gross domestic product, and is now the world's largest.

Accepted Answer

It is larger when measured by PPP, or purchasing power parity.

Question 2

The Chinese have worked hard to Westernize their business practices and that is the secret of their economic success in recent years.

Accepted Answer

The Chinese insist on carrying out business according to their own cultural practices, including building guanxi and applying ancient Chinese military strategies.

Question 3

Chinese guanxi relationships are mainly defined by the giving of gifts and the doing of favors, expecting reciprocal responses.

Accepted Answer

Gifts and favors are the outward express of ganqing, or deep feelings of trust and empathy that develop over time between guanxi partners.

Question 4

Despite international tensions between China and Japan, and Chinese rioters protesting Japanese actions during World War II, China is still Japan's leading export market, receiving more Japanese goods and services than the United States.

Accepted Answer

Despite historical tensions and political issues, economic interdependence between China and Japan is strong. China has indeed become Japan's largest export market, surpassing the United States, due to the vast and growing Chinese market's demand for Japanese goods and services, technology, and investment.

Question 5

South Korean business culture places a higher value on age-based seniority than technical competence.The older person automatically has higher status.

Accepted Answer

Age-based seniority is very strong in South Korea.

Question 6

North Korea survives, despite a belligerent and militaristic attitude, because China sees it as a buffer state between itself and the West and provides economic support.

Accepted Answer

China supports North Korea to maintain it as a buffer zone against U.S. military presence in South Korea and to prevent the instability that would come from its collapse, which could lead to refugee flows and a unified Korea potentially allied with the U.S.

Question 7

The predominant Si (Introverted Sensing) problem-solving style of the American, Japanese, and South Korean national characters differs from the predominant Fi style of the Chinese because:

Accepted Answer

The Chinese Fi (Introverted Feeling) style focuses on decisions aligned with personal values and social commitments, contrasting with the Si (Introverted Sensing) style prevalent in American, Japanese, and South Korean cultures, which emphasizes decisions based on factual details and past experiences.

Question 8

The predominant Fe (Extraverted Feeling) communication style of the Japanese national character differs from predominant Te (Extraverted Thinking) style of the American national character because:

Accepted Answer

The Fe (Extraverted Feeling) communication style, often associated with Japanese culture, emphasizes harmony, trust, and cooperation in relationships, including in business contexts. This contrasts with the Te (Extraverted Thinking) style, more typical of American culture, which focuses on efficiency, objective outcomes, and direct problem-solving. Offering compromises to establish mutual benefits is a strategy aligned with building trust and cooperation, characteristic of an Fe communication approach.

Quiz 7: Doing Business in East Asia