MIB Master of International Business: Cross Culture Management 3 — Questions and Answers
Question 1: Which negotiation style is most common in cultures with high collectivism and high power distance?
- Direct, individual-driven bargaining
- Consensus-based, hierarchically approved agreements (Correct answer)
- Competitive, zero-sum tactics
- Legalistic, contract-first approaches
Correct answer: Consensus-based, hierarchically approved agreements
In high collectivist and high power-distance cultures, decisions require group consensus and senior approval before any agreement is finalized.
Question 2: Edward Hall's concept of 'proxemics' in cross-cultural management refers to:
- How cultures perceive time
- The physical distance people maintain in social interactions (Correct answer)
- The use of silence in communication
- Attitudes toward personal relationships in business
Correct answer: The physical distance people maintain in social interactions
Proxemics studies how different cultures use and interpret personal space, which significantly affects comfort levels in business meetings and negotiations.
Question 3: A Brazilian executive insists on building a personal relationship before discussing business terms. This aligns with which of Trompenaars' dimensions?
- Universalism
- Neutral vs. Affective
- Specific vs. Diffuse (Correct answer)
- Sequentiality
Correct answer: Specific vs. Diffuse
In diffuse cultures, personal and professional life overlap significantly, and relationships must be established before business can proceed effectively.
Question 4: What does the 'U-curve' model of cultural adjustment describe?
- The rise and fall of expatriate compensation
- Stages of culture shock from honeymoon to adaptation (Correct answer)
- The learning curve for foreign language acquisition
- Trade relationship cycles between countries
Correct answer: Stages of culture shock from honeymoon to adaptation
The U-curve model maps expatriate adjustment through stages: initial excitement (honeymoon), disillusionment (culture shock), gradual adaptation, and eventual adjustment.
Question 5: In Hofstede's research, 'indulgence' as a cultural dimension refers to:
- Tolerance for ambiguity and uncertainty
- The extent to which societies allow free gratification of human desires (Correct answer)
- Preference for long-term planning
- Acceptance of unequal power distribution
Correct answer: The extent to which societies allow free gratification of human desires
Indulgence measures the degree to which people can freely enjoy life and have fun, versus restrained societies that suppress gratification through strict norms.
Question 6: A German manager insists on following a detailed agenda and becomes frustrated when an Italian colleague keeps digressing. This reflects a conflict between:
- High vs. low power distance
- Monochronic vs. polychronic time orientations (Correct answer)
- Individualism vs. collectivism
- High vs. low uncertainty avoidance
Correct answer: Monochronic vs. polychronic time orientations
Monochronic cultures (common in Germany) focus on one task at a time and value schedules, while polychronic cultures (common in Italy) handle multiple tasks and relationships simultaneously.
Question 7: Which strategy is most effective when managing a multicultural team with conflicting norms around hierarchy?
- Enforce the home country's hierarchy structure universally
- Ignore hierarchy differences and treat all members identically
- Establish explicit team norms that acknowledge diverse expectations (Correct answer)
- Assign all decision-making to the highest-ranking member
Correct answer: Establish explicit team norms that acknowledge diverse expectations
Creating explicit, agreed-upon team norms bridges cultural gaps by making implicit expectations visible and allowing the team to co-create functional working rules.
MIB Master of International Business: Cross Culture Management 3
Which negotiation style is most common in cultures with high collectivism and high power distance?