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Multiple Choice
1. Why is negotiation across cultures more difficult than the same process within one’s own
a. Some cultures do not negotiate.
b. Americans hate to compromise.
c. The two cultures may not share the same values.
d. The other culture may have no ethical principles.
Answer: c
2. An American businessman lays his proposal out very explicitly for his Japanese partners.
The Japanese are much less clear, and the American concludes that they are being sneaky and
covert. Is his conclusion accurate?
a. Yes, the Japanese style of negotiation traditionally involves deception.
b. Yes, the American has avoided a transaction with unscrupulous individuals.
c. No, the Japanese negotiators simply misunderstood his proposal.
d. No, Japanese negotiators use more subtle communication than Americans.
Answer: d
3. Why were the Iranian people displeased with UN Secretary General Waldheim’s offers of
mediation and compromise?
a. These terms carry very different meanings in their Persian translation.
b. Iranians believe that mediation is a sign of weakness.
c. Iran is outside the UN’s jurisdiction, so Waldheim had no business there.
d. Waldheim’s statements were too direct for the more subtle communication style of the
Persian language.
Answer: a
4. You are an American businessperson who will be meeting with potential clients from
Sweden. Which negotiating site would give you the greatest advantage?
a. your client’s office in Uppsala
b. your own office in New York
c. near the airport in Stockholm
d. in a neutral office in London
Answer: b
5. A foreign negotiator is hampered by their distance from their home office because that
person __________.

a. must deal with time changes or long-distance mailing to communicate
b. have no translators to help with language difficulties
c. will not be welcomed into their colleague’s office space
d. do not have time for a long visit for negotiation
Answer: a
6. Why are Westerners more likely to do their negotiating on foreign soil than most other
a. Foreign businesspeople often have cultural taboos that prohibit international travel.
b. Foreign companies cannot afford to send their employees on international business trips.
c. Westerners are usually trying to sell their product abroad, so they should go to their
potential customers.
d. Westerners can travel anywhere in the world without a visa, so it is easy for them to go
Answer: c
7. Which of the following common statements best represents the U.S. value assumption of
a. “I don’t want to beat around the bush.”
b. “Let’s take one item at a time.”
c. “Time is money.”
d. “This is my best and final offer.”
Answer: d
8. A central theme in the literature on global business negotiations is that the most important
consideration is __________.
a. focusing on a single contract
b. getting the best price on a current project
c. building relationships
d. donating to local charities
Answer: c
9. A signed contract means __________ for most Americans, whereas it represents
__________ for most Asians.
a. opening, continuing
b. closing, opening
c. postponing, closing

d. continuing, closing
Answer: b
10. Negotiating partners __________.
a. must have comparable values, goals, and priorities
b. must share ethical principles but may have different goals
c. must share goals but may have different underlying values
d. may have a good working relationship despite many disagreements
Answer: d
11. Why should a portion of the negotiating team be retained after contract signing?
a. The venture will launch more easily with pre-existing relationships.
b. The contract will not be valid in both countries and must be signed twice.
c. Members of the negotiating team are usually chosen to run the new branch.
d. Retaining the negotiating team keeps company ideas close to home.
Answer: a
12. During negotiations, a Ugandan company asks that women be paid higher salaries than
men. Your American company has a strict policy of paying all employees equally. How can
you make this collaboration work?
a. They will have to accept the American policies without compromise.
b. You will have to compromise by making a slight difference in pay between men and
c. Find out why they wish women to be paid more than men, so you may come to an
alternative arrangement.
d. There is no way to meet this requirement, so you will have to end your negotiations.
Answer: c
13. It is important to remember that identified cultural patterns represent __________ at the
negotiating table.
a. absolutes
b. tendencies
c. rare occurrences
d. taboos
Answer: b
14. What factor, independent of culture, may influence a person’s negotiating behavior?
a. education

b. religion
c. gender
d. position in the company
Answer: a
15. As a general rule, global negotiations __________ than domestic negotiations.
a. take longer
b. take less time
c. involve more expensive transactions
d. involve less expensive transactions
Answer: a
16. It would be very difficult to conduct business meetings in Europe during the month of
August, since most people take long annual holidays at the end of the summer. What is a
comparably difficult time frame for negotiations in the United States?
a. the week after Easter
b. the week between Christmas and New Year’s
c. the month of July
d. the days around Thanksgiving and Black Friday
Answer: b
17. Why is flexibility always necessary for the successful international negotiator?
a. There is no way to predict how people from other cultures will behave.
b. Even well-prepared negotiators will have a limited grasp of how things work.
c. People in other cultures often have unreliable schedules or lack an agenda.
d. You can expect problems in translation, even when using an interpreter.
Answer: b
18. What important information does a negotiator need to have before leaving for
international negotiations?
a. detailed knowledge of the other culture’s foods and music
b. technicalities on how contracts are drawn up in the other country
c. his own objectives and bottom line
d. his negotiating partner’s objectives and bottom line
Answer: c
19. Why are Americans often at a disadvantage at the global negotiating table?
a. Math education is of low quality in the United States.

b. They are usually poorly trained in effective listening.
c. Few American negotiators have a university degree.
d. Americans give subtle cues that people from other cultures may miss.
Answer: b
20. The tendency to discount, or simply not hear, any message that is inconsistent with what
you already believe is called cognitive __________.
a. difference
b. disagreement
c. discord
d. dissonance
Answer: d
21. Acting with integrity means __________.
a. placing charitable goals before profits
b. not violating the ethical standards of your culture or self
c. allowing your global partner a greater say in the negotiation process
d. hiring employees from the local populace only
Answer: b
22. How would your colleagues in a collectivist society such as Japan likely perceive an
American “whistle-blower”?
a. as someone on the ethical high ground
b. as a conscientious employee
c. as disloyal to the company
d. as a danger to the state
Answer: c
23. You have been studying Swahili for several months in preparation for your business trip
to Kenya. Which language should you use during negotiations?
a. only English, with Swahili reserved for more casual interactions
b. only Swahili, as a sign of respect for your host nation
c. simple Swahili, since you have a basic grasp of the language
d. both languages, with the aid of a competent interpreter
Answer: d
24. A(n) __________ works with documents, where a(n) __________ works with spoken
language in a face-to-face situation.

a. translator; interpreter
b. interpreter; editor
c. editor; translator
d. interpreter; translator
Answer: a
25. We know that we should not be too ethnocentric when dealing with global business
partners. Why should we also not lean too far in the other direction, or “go native”?
a. You may cross your own ethical boundaries by taking on another culture.
b. It makes you appear silly since you have a limited knowledge of their culture.
c. Most people are suspicious of anyone imitating their behaviors.
d. Most people would misinterpret your gestures as mockery.
Answer: c

Test Bank for Cultural Dimension of Global Business
Gary Ferraro, Elizabeth K. Briody

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