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International Business
International Business, 14e (Daniels et al.)
Chapter 2 The Cultural Environments Facing Business

1) ________ consists of specific learned norms based on attitudes, values, and beliefs of a group of people.
A) Ethnology
B) Civilization
C) Culture
D) Doctrine
Answer: C
Diff: 1
Skill: Concept
Objective: 1
AACSB: Multicultural and diversity understanding

2) Which of the following is NOT true about cultural diversity?
A) Companies may gain competitive advantages by bringing together people of diverse backgrounds.
B) Cultural diversity is most successful when domestic and foreign firms establish joint ventures.
C) Cultural diversity may help a company gain deeper knowledge about products and services.
D) The process of bringing people of different national cultures together is often difficult.
Answer: B
Diff: 3
Learning Outcome: Explain how differences in culture affect the international business environment
Skill: Concept
Objective: 1
AACSB: Multicultural and diversity understanding

3) Because people can be grouped or classified in many ways, such as on the basis of nationality, ethnicity, religion, profession, and income level, ________.
A) people live in a state of cultural collision
B) cultural studies fail to understand behaviors
C) identity crises make individual's lives chaotic
D) people have more than one cultural group membership
Answer: D
Diff: 2
Skill: Concept
Objective: 1
AACSB: Multicultural and diversity understanding

4) When divergent cultures come in contact, ________ occurs.
A) power distance
B) culture shock
C) cultural collision
D) group membership
Answer: C
Diff: 1
Skill: Concept
Objective: 1
AACSB: Multicultural and diversity understanding

5) Which of the following best describes a result of cultural collision in international business?
A) A company implements practices that are less effective than intended.
B) Local employees are overlooked for promotions by home country managers.
C) Expatriate managers rely too heavily on

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