Question 1

Globalization, the trend toward a more global economy, has substantially decreased since 1980.

Accepted Answer

Globalization has increased since 1980, not decreased.

Question 2

McDonald's has done more to accommodate cultural differences in its restaurants than many other companies.

Accepted Answer

McDonald's has a history of adapting its menu and decor to fit local cultures and customs, such as offering kosher and halal options in some regions, serving beer in some European locations, and featuring different menu items in different countries. Additionally, they have often hired local employees and trained them to cater to cultural differences, making efforts to be inclusive of diverse communities.

Question 3

Economic risks relate to difficulties inherent in managing the complex resource flows required by most international firms.

Accepted Answer

False

Question 4

Recent studies have shown that virtual teams with substantial cross-cultural differences often exhibit lower trust than virtual teams with more cross-cultural similarities.

Accepted Answer

Recent studies have indeed found that virtual teams with major cross-cultural differences tend to have lower levels of trust compared to teams with more similarities in culture. This is because members of such teams often have different values, beliefs, and communication styles, which can result in misunderstandings, misinterpretations, and conflicts. Building trust in cross-cultural virtual teams often requires additional effort, such as establishing clear communication protocols, promoting diversity and inclusion, providing cultural training, and establishing strong relationships among team members.

Question 5

Many fear that unique cultures around the world will disappear over time if the world becomes one unified market for goods and services.

Accepted Answer

Globalization and the homogenization of cultures due to increased international trade and travel have led to concerns that unique cultural traditions and practices may be lost in the process. This has sparked efforts to preserve cultural heritage and diversity, such as UNESCO's World Heritage Sites, as well as local movements to promote and protect traditional customs and identities.

Question 6

Virtual electronic teams have been found to be very inefficient.

Accepted Answer

Virtual electronic teams have been found to be very efficient, as they offer greater flexibility, cost savings, and access to a wider talent pool. However, they do come with their own unique challenges such as communication barriers, trust issues, and cultural differences which need to be managed effectively.

Question 7

Political risks relate to instability in national governments, such as the threat of civil war.

Accepted Answer

Political risks refer to any uncertainty caused by political decisions or events that could negatively impact a company's profits or goals. Instability in national governments, including the threat of civil war, is a common source of political risk.

Question 8

The U.S. culture tends to be individualistic, whereas cultural values in India and China stress the importance of family and social relationships.

Accepted Answer

This statement is true. The United States is often described as an individualistic culture, emphasizing personal achievement and independence, while many Eastern cultures such as India and China value collectivism and family relationships.

Question 9

Culture involves shared values and taken-for-granted assumptions about how to think and act.

Accepted Answer

Culture is based on shared beliefs and practices that members of a society or group share, which can include standard behaviors, language, and values. These shared perceptions are often so deeply ingrained that people may not even be aware that they hold them, and they can be passed down from generation to generation.

Question 10

Countries' institutional environments have very little effect on home and foreign country firms' strategies.

Accepted Answer

Countries' institutional environments have a significant impact on home and foreign country firms' strategies. Institutional factors such as regulations, laws, and cultural norms can affect a firm's operations, performance, and competitive advantage. Firms need to adapt their strategies to the institutional environment of the country they operate in, or they risk facing legal, social, and reputational challenges that can harm their business.

Question 11

Economic risks relate to fluctuations in the value of foreign currencies and the possibility of sudden economic contraction in some countries.

Accepted Answer

Economic risks, such as currency fluctuations and economic contractions, are legitimate concerns for companies operating in a global market. These risks can impact profitability, supply chain management, and overall business stability.

Question 12

In a global economy, products, services, people, technologies, and financial capital move with relative difficulty across national borders.

Accepted Answer

In a global economy, products, services, people, technologies, and financial capital tend to move more freely across national borders, facilitated by trade agreements, technological advancements, and globalization processes.

Question 13

Over the next few decades, India is projected to have the world's third largest economy.

Accepted Answer

According to various economic projections, India is expected to become the world's third largest economy by the year 2030, overtaking Japan and Germany.

Question 14

In Brazil, McDonald's changed its marketing tactics and now caters to the afternoon meal rather than to a lunch meal.

Accepted Answer

According to reports, McDonald's in Brazil has shifted its marketing tactics towards promoting the afternoon meal to combat declining sales during lunchtime.

Question 15

In some cultures, actions can affect relationships more than thinking and talking.

Accepted Answer

The answer of In some cultures, actions can affect relationships...

Question 16

The global economic recession led to a reduction in the total amount of direct foreign investments in 2008 and 2009.

Accepted Answer

The global economic recession that occurred between 2008 and 2009 led to a significant reduction in the total amount of direct foreign investments due to decreased investor confidence, market volatility, and other factors. Therefore, the statement is true.

Question 17

Offering kosher foods in Israel and vegetable meals in India are examples of how McDonald's provides its customers with consistent products regardless of location.

Accepted Answer

McDonald's adapts its menu to meet local tastes and dietary laws, such as offering kosher foods in Israel and vegetarian options in India, rather than providing consistent products worldwide.

Question 18

American leaders of Euro Disney originally failed to understand some European workplace norms that produced a less friendly approach to guests in the park.

Accepted Answer

According to the given statement, the American leaders of Euro Disney failed to understand some European workplace norms that resulted in a less friendly approach to guests in the park. Therefore, the statement is true.

Question 19

An individual who leaves his or her home country to live and work in a foreign land is referred to as an expatriate.

Accepted Answer

This is a correct definition of an expatriate.

Question 20

When early communication is not task-focused and positive, a phenomenon known as "swift trust" can occur.

Accepted Answer

Swift trust typically occurs when early communication among team members is task-focused and positive, facilitating a quick foundation of trust in temporary teams or situations where immediate collaboration is necessary.

Quiz 3: Organizational Behavior in a Global Context