IC Chap 5 PDF

1\. Which of the following terms refers to the process by which two or more parties meet to try to reach an agreement regarding conflicting interests? A\) polarization B\) social loafing C\) globalization D\) negotiation Answer: D 2\. Which of the following is most likely to be a reason for in...

1\. Which of the following terms refers to the process by which two or more parties meet to try to reach an agreement regarding conflicting interests? A\) polarization B\) social loafing C\) globalization D\) negotiation Answer: D 2\. Which of the following is most likely to be a reason for ineffective international business negotiations? A\) differences in cultural values and problem-solving techniques B\) highly restrictive government legislations C\) lack of socializing with the opposite party D\) lack of nonverbal communication Answer: A 3\. For long-term positive relations, the goal of negotiation should most likely be to \_\_\_\_\_\_\_\_. A\) establish clear objectives of the parties involved B\) reach a settlement that benefits all parties C\) establish a clear line of communication D\) avoid nonverbal communication Answer: B 4\. A French businessman has a meeting scheduled with a Brazilian to negotiate terms of a joint venture. The Frenchman prepares for the meeting in the way he always does when negotiating with French firms. The Frenchman assumes that the Brazilian will perceive and reason the way he does. Which of the following terms best describes the Frenchman's mistake? A\) cognitive dissonance B\) moral idealism C\) parochialism D\) projective cognitive similarity Answer: D 5\. Which of the following is one of the stages in the negotiation process? A\) preparation B\) link building C\) feedback D\) orientation Answer: A 6\. Which of the following variables is LEAST relevant to the profile of an opposing party in a cross-cultural negotiation? A\) bases of trust B\) value and uses of time C\) risk-taking propensity D\) location of the negotiation Answer: D 7\. Relationship building is the process of getting to know one's contacts in a host country and building mutual trust before embarking on business discussions and transactions. Answer: TRUE 8\. The relationship-building process during negotiation is over as soon as a negotiator is done exchanging task-related information. Answer: FALSE 9\. What is projective cognitive similarity? How do successful negotiators avoid projective cognitive similarity? Answer: Projective cognitive similarity refers to the common practice of assuming that those you are negotiating with perceive, judge, think, and reason in the same way, when in reality they do not because of different cultural values. Successful negotiators will empathize with their counterparts and share their own viewpoint. 10\. What is negotiation? Answer: The word negotiation describes the process of discussion between two or more parties aimed at reaching a mutually acceptable agreement. 11\. Which aspect of the negotiation process will most likely occur on a continuous basis? A\) persuasion B\) relationship building C\) preparation D\) concessions and agreement Answer: B 12\. Which of the following statements is true regarding a negotiation process? A\) The negotiation process consists of six different stages. B\) The stages of the negotiation process are distinctly separate. C\) The concession and agreement stage typically occurs before the preparation stage. D\) The cultural norms of the place determine the order of the negotiation process stages. Answer: D 13\. \_\_\_\_\_\_\_\_ is the process of getting to know one's contacts in a host country and building mutual trust before embarking on business discussions and transactions. A\) Exchange of task-related information B\) Relationship building C\) Conflict management D\) Persuasion Answer: B 14\. One of the primary purposes of relationship building during the negotiation process is to \_\_\_\_\_\_\_\_. A\) build mutual trust B\) create formal contracts C\) exchange task-related information D\) avoid direct confrontations Answer: A 15\. In the negotiation process, participation in social events, tours, ceremonies, and informal conversation is a characteristic of the \_\_\_\_\_\_\_\_ stage. A\) preparation B\) information exchange C\) relationship building D\) concessions and agreement Answer: C 16\. Which of the following aspects of negotiating is most closely associated with nontask sounding? A\) relationship building B\) information exchange C\) persuasion D\) final agreement stage Answer: A 17\. Which of the following terms refers to general, polite conversation and informal communication before meetings? A\) nontask sounding B\) cultural noise C\) kinesics behavior D\) nonverbal behavior Answer: A 18\. Which of the following serves as a bridge from relationship building to the more formal stages of negotiating? A\) mediating B\) posturing C\) conceding D\) evaluating Answer: B 19\. Yu Fei, a negotiator for Tama Inc., has a conference with an American competitor's officials. Her seniors advise her to completely understand the Americans' viewpoint during the conference. Which of the following benefits will be most likely achieved by Yu Fei if she listens to her seniors' advice? A\) It will help Yu Fei fine-tune her listening skills and help point out loopholes. B\) It will encourage Yu Fei to assess a wide range of alternatives for a resolution. C\) It will motivate Yu Fei to adapt to the negotiation style of the Americans. D\) It will help Yu Fei to delve specifically and repeatedly into the details at hand. Answer: B 20\. According to Adler, in order to understand the perspectives of both sides and to prepare for meetings effectively, a negotiator must \_\_\_\_\_\_\_\_. A\) avoid the use of nonverbal communication B\) engage in lengthy, evasive conversations C\) practice role reversal D\) avoid direct conflicts Answer: C 21\. During which stage of the negotiations process does hard bargaining begin? A\) persuasion B\) relationship building C\) information gathering D\) agreement Answer: A 22\. In the American culture, which of the following is most likely to be considered a "dirty trick" during cross-cultural negotiations? A\) establishing personal relationships B\) deliberately distorting facts C\) hard bargaining D\) exchanging irrelevant information Answer: B 23\. In the American culture, which of the following is most likely considered a rough tactic used during negotiations? A\) confrontations during conflicts B\) use of emotional appeals C\) informal seating arrangement D\) uncomfortable room temperatures Answer: D 24\. Which of the following stages of negotiations is most likely to take place immediately after the exchange of task-related information? A\) relationship building B\) persuasion C\) preparation D\) concessions and agreement Answer: B 25\. Which of the following is most likely a subtle and complex behavior that makes cross-cultural negotiations difficult? A\) developing goals of negotiation B\) nonverbal communication C\) exchanging objective information D\) employing information technology Answer: B 26\. Which of the following is most likely the last stage of negotiation? A\) analysis of an opponent's position B\) relationship building C\) concessions and agreement D\) training Answer: C 27\. Research in the United States indicates that during the final stage of negotiations, it is best to start with \_\_\_\_\_\_\_\_. A\) extreme positions B\) a holistic approach C\) relationship building D\) finalized formal contracts Answer: A 28\. Which of the following is most likely to be true about negotiators in the Far East? A\) Negotiators avoid building informal relationships. B\) Negotiators approach issues in a holistic manner, deciding on the whole deal at the end. C\) Negotiators begin the discussions by pointing out proposals that they are prepared to accept. D\) Negotiators are particular about formal contracts and insist on specific clauses. Answer: B 29\. The method of using extreme positions during the concessions and agreement stage of negotiation involves \_\_\_\_\_\_\_\_. A\) careful timing of the disclosure of information and concessions B\) approaching the issue in a holistic manner C\) general and polite conversation to socialize D\) building mutual trust before embarking on business discussions Answer: A 30\. Relationship building is the process of getting to know one's contacts in a host country and building mutual trust before embarking on business discussions and transactions. Answer: TRUE 31\. Nontask sounding involves general, polite conversation and informal communication before meetings. Answer: TRUE 32\. During exchange of task-related information, Mexicans tend to engage in lengthy, evasive conversation. Answer: FALSE 33\. Culturally based differences in verbal and nonverbal negotiation behavior influence the negotiation process at every stage. Such tactics and actions include promises, threats, initial concessions, silent periods, interruptions, facial gazing, and touching; some parties resort to various dirty tricks. Answer: TRUE 34\. During the stage of concessions and agreement, Russians and Chinese generally take extreme positions. Answer: TRUE 35\. Negotiators in the Far East address issues one at a time, in a linear fashion. Answer: FALSE 36\. How does nonverbal communication affect the negotiation process? Answer: The most subtle behaviors in the negotiation process, and often the most difficult to deal with, are usually the nonverbal messages---the use of voice intonation, facial and body expressions, eye contact, dress, and the timing of the discussion. Nonverbal behaviors are ingrained aspects of culture used by people in their daily lives; they are not specifically changed for the purposes of negotiation. 37\. When preparing for cross-cultural negotiations, managers should first evaluate their own negotiation styles in order to \_\_\_\_\_\_\_\_. A\) understand the reasons for failing or succeeding in domestic negotiations B\) determine how they differ from the norm in other countries C\) analyze the various stages of the negotiation process D\) assess all social and cognitive influences Answer: B 38\. Which of the following is a similarity between the negotiation styles of both North Americans and Latin Americans? A\) They highly value emotional sensitivity. B\) They display strong commitment to their employers. C\) They give great importance to documentation. D\) They tend to be argumentative when they think they are right. Answer: D 39\. Many Arab negotiators, following Islamic tradition, use mediators to settle disputes. Answer: TRUE 40\. What forms the basis for the enforcement of most business contracts in Mexico and China? A\) legal systems B\) scientific research C\) personal commitments to individuals D\) international regulations Answer: C 41\. From an American perspective, the \_\_\_\_\_\_\_\_ stage of negotiation is straightforward, objective, efficient, and direct. A\) relationship building B\) exchanging task-related information C\) nonverbal communication D\) motivation Answer: B 42\. During the exchange of task-related information, who among the following people would most likely ask many questions of their counterparts, delve specifically and repeatedly into the details at hand, and provide only vague and ambiguous material during a presentation? A\) Chinese B\) Arabs C\) Americans D\) Mexicans Answer: A 43\. Which of the following cultural groups enjoys debate and conflicts and will often interrupt presentations to argue about an issue even if it has little relevance to the topic being presented? A\) Mexicans B\) French C\) Arabs D\) Chinese Answer: B 44\. In the Far East, details are likely to be worked out ahead of time through the "backdoor" approach. Which of the following terms refers to this approach? A\) mottainai B\) lien C\) guanxi D\) houmani Answer: D 45\. In which of the following countries do people typically begin the concessions and agreement stage of negotiation with what they are prepared to accept rather than take extreme positions? A\) China B\) Sweden C\) Russia D\) United States Answer: B 46\. In the \_\_\_\_\_\_\_\_ culture, negotiators tend to use the word "no" repeatedly, and they are best described as spontaneous and talkative. A\) Brazilian B\) Arabian C\) American D\) Japanese Answer: A 47\. \_\_\_\_\_\_\_\_ are based on what North Americans believe is objective information, presented with the assumption that it is understood by the other side on a logical basis. A\) Factual appeals B\) Affective appeals C\) Axiomatic appeals D\) Nonverbal messages Answer: A 48\. Which of the following types of appeals, typically used by Arabs, is based on emotions and subjective feelings? A\) factual appeals B\) affective appeals C\) axiomatic appeals D\) virtual appeals Answer: B 49\. Axiomatic appeals are generally based on \_\_\_\_\_\_\_\_. A\) socially accepted ideals B\) level of loyalty C\) subjective feelings D\) objective information Answer: A 50\. Which of the following is true about the negotiating tactics used by the Russians? A\) They are quick decision makers. B\) They believe that "time is money." C\) They stall for time. D\) They are outwardly expressive. Answer: C 51\. Arab negotiators will most likely make concessions because of their interest in \_\_\_\_\_\_\_\_. A\) saving valuable time B\) preventing embarrassment C\) forming long-term relationships D\) creating a good first impression Answer: C 52\. Which of the following behaviors is NOT consistent with Casse's profile of successful American negotiators? A\) refuses to make concessions in advance B\) exhibits a good sense of timing C\) never compromises D\) understands the issues Answer: C 53\. According to Pierre Casse, which of the following is a typical characteristic of a successful Indian negotiator? A\) never changes his or her mind B\) lacks patience C\) uses trade secrets to strengthen his position D\) stays humble and trusts the opponent Answer: D 54\. According to Pierre Casse, Arab negotiators \_\_\_\_\_\_\_\_. A\) are able to resist any kind of pressure B\) prefer short-term relationships to long-term relationships C\) confront opponents directly and openly D\) do not use conferences as mediating devices Answer: A 55\. According to Pierre Casse, which of the following is a typical characteristic of a Swedish negotiator? A\) inflexible B\) down to earth and overcautious C\) inefficient D\) confronts openly and directly Answer: B 56\. Which of the following is true about Arab negotiators? A\) Arab negotiators do not use conferences as mediating devices. B\) Arab negotiators generally use factual rather than affective appeals. C\) Arab negotiators prefer short-term relationships to long-term relationships. D\) Arab negotiators use mediators to settle disputes. Answer: D 57\. Which of the following terms refers to the nature and appearance of the relationship between the people pursuing common goals in a negotiation? A\) software of negotiation B\) diplomacy of negotiation C\) objectivity of negotiation D\) transparency of negotiation Answer: A 58\. Using a problem-solving approach during cross-cultural negotiations requires a negotiator to \_\_\_\_\_\_\_\_. A\) reduce the amount of specific details and facts B\) avoid focusing on long-term issues C\) make frequent counterproposals D\) avoid criticizing the other party in a personal way Answer: D 59\. A negotiation support system provides support to the negotiation process by \_\_\_\_\_\_\_\_. A\) increasing the likelihood that an agreement is reached when a zone of agreement exists B\) increasing the ability to communicate nonverbally C\) increasing costs associated with time delays D\) increasing the fees paid to the attorneys Answer: A 60\. The \_\_\_\_\_\_\_\_ approach to conflict is being used when both parties negotiate on the basis of factual information and logical analysis. A\) instrumental-oriented B\) expressive-oriented C\) affective-oriented D\) individual-oriented Answer: A 61\. Which of the following approaches to conflict involves handling the situation indirectly and implicitly without clear delineation of the situation from the person handling it? A\) instrumental-oriented B\) expressive-oriented C\) objective-oriented D\) problem-oriented Answer: B 62\. Which of the following is a part of the rational decision-making process? A\) background check on individuals involved in decision-making B\) gathering and analyzing relevant data C\) comparison of competitor products D\) marketing the respective products or services Answer: B 63\. Research shows that managers from \_\_\_\_\_\_\_\_ have the highest tolerance for risk. A\) America B\) Germany C\) Belgium D\) Austria Answer: A 64\. American managers believe strongly in self-determination and perceive problem situations as something they can change. This shows that they \_\_\_\_\_\_\_\_. A\) belong to a high-context culture B\) believe in socialism C\) have internal locus of control D\) belong to a high power distance culture Answer: C 65\. Which of the following types of decision making is generally used in China, Germany, Turkey, and India? A\) participative B\) autocratic C\) totalitarian D\) theocratic Answer: B 66\. Middle Easterners avoid hiring mediators, as they cannot deal with direct conflicts. Answer: FALSE 67\. Americans are calm, quiet, patient negotiators; they are accustomed to long, detailed negotiating sessions. Answer: FALSE 68\. Russians employ axiomatic appeals---that is, their appeals are based on the ideals generally accepted in their society. Answer: TRUE 69\. Compared to Indian negotiators, American negotiators are more likely to withdraw, use silence, and learn from within. Answer: FALSE 70\. Italian negotiators have a sense of drama and are not afraid to hide their emotions. Answer: TRUE 71\. The term "software of negotiation" refers to the contractual terms mentioned in a written document. Answer: FALSE 72\. Negotiation support systems can provide support for the negotiation process by maximizing the chances for optimal outcomes. Answer: TRUE 73\. What is the difference between affective, axiomatic, and factual appeals? Answer: For North Americans, negotiations are businesslike; their factual appeals are based on what they believe is objective information, presented with the assumption that it is understood by the other side on a logical basis. Arabs use affective appeals based on emotions and subjective feelings. Russians employ axiomatic appeals---that is, their appeals are based on the ideals generally accepted in their society. 74\. How can modern technology, such as negotiation support systems (NSS), be used to improve the negotiating process? Answer: NSS can provide support for the negotiation process in three ways: (1) increase the likelihood that an agreement is reached when a zone of agreement exists; (2) decrease the direct and indirect costs of negotiations; and (3) maximize the chances for optimal outcomes. 75\. How is conflict during negotiations handled in high-context and low-context cultures? Answer: In low-context cultures, such as the United States, conflict is handled directly and explicitly. It is also regarded as separate from the person negotiating---that is, the negotiators draw a distinction between the people involved and the information or opinions they represent. They also tend to negotiate on the basis of factual information and logical analysis, which is known as instrumental-oriented conflict. In high-context cultures, such as the Middle East, the approach to conflict is called expressive-oriented conflict--that is, the situation is handled indirectly and implicitly, without clear delineation of the situation by the person handling it. 76\. What is the difference between an internal locus of control and an external locus of control? What cultures use each type? Answer: Some managers feel that they can plan on certain outcomes because they are in control of events that will direct the future in the desired way. This is called internal locus of control. In contrast, other managers believe such decisions are of no value because they have little control over the future that lies in the hands of outside forces such as fate, God, or nature. This is called external locus of control. American managers function with an internal locus of control whereas managers in many other countries such as Indonesia and Malaysia do not believe they have as much control over events. 77\. In what ways might the American style of negotiation be misinterpreted in another culture? Answer: The American's desire to get down to business quickly might be interpreted as a lack of concern for rigorous process or a lack of concern for relationship building. The American rational (unemotional) style might be misperceived as showing a lack of commitment. The emphasis on time might be misinterpreted as a rough tactic---attempting to pressure the other team into making a decision too quickly or before consensus has been reached. 78\. According to the research conducted by Tung et al., which of the following cities in China has people who are business-savvy, confident, career-oriented, and materialistic? A\) Beijing B\) Chengdu C\) Shanghai D\) Guangzhou Answer: C 79\. According to the research conducted by Tung et al., people in \_\_\_\_\_\_\_\_ are bureaucratic, educated, diversified, highly relationship-oriented, and more direct. A\) Shenzhen B\) Shanghai C\) Beijing D\) Guangzhou Answer: C 80\. Business people report two major areas of conflict in negotiating with the Chinese---their apparent insincerity about reaching an agreement and \_\_\_\_\_\_\_\_. A\) their unwillingness to develop relationships beyond a superficial level B\) their insistence on a compromise whenever progress becomes difficult C\) the amount of details desired about product characteristics D\) the use of bureaucratic mechanisms to stall negotiations Answer: C 81\. Which of the following cultural norms greatly affects the negotiation process for the Chinese? A\) ingrained politeness and emotional restraint B\) emphasis on impersonal relationships C\) belief in explicit and direct approach D\) tendency to approach conflicts directly Answer: A 82\. In Chinese culture, the term \_\_\_\_\_\_\_\_ refers to a person's moral character; it is the most important thing defining that person and without it, one cannot function in society. A\) mien-tzu B\) lien C\) guanxi D\) houmani Answer: B 83\. Linda, the operations executive for Tango, is asked to travel to China in order to set up a new operational facility. When negotiating with the Chinese investors, Linda should \_\_\_\_\_\_\_\_. A\) be direct and explicit when conveying information, as time is of immense value B\) be focused on establishing long-term, trusting relationships, even at the expense of some immediate returns C\) be aggressive D\) be quick in decision making and confront problems directly Answer: B 84\. Which of the following best defines guanxi? A\) personal reputation B\) common group goals C\) network of personal relations D\) unacceptable negotiating tactics Answer: C 85\. Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to enter the global market, and they are considering the idea of a joint venture with a beverage company located overseas. After conducting research on different beverage firms, Fizzy executives selected a large beverage manufacturer located in China. Kevin Burns and three other top-level executives at Fizzy have been assigned to the negotiating team. The team recently arrived in China to negotiate the details of the joint venture. Which of the following, if true, strengthens the argument that Kevin should make token concessions to the Chinese throughout the negotiation process? A\) Fizzy executives hope to have other business deals with the Chinese firm in the future. B\) Fizzy executives want to demonstrate their aggressiveness and present factual appeals. C\) Fizzy executives want to ensure compliance with the ringi system at the Chinese firm. D\) Fizzy executives are not certain as to who has decision-making authority at the Chinese firm. Answer: A 86\. Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to enter the global market, and they are considering the idea of a joint venture with a beverage company located overseas. After conducting research on different beverage firms, Fizzy executives selected a large beverage manufacturer located in China. Kevin Burns and three other top-level executives at Fizzy have been assigned to the negotiating team. The team has flown to China to negotiate the details of the joint venture. Which of the following, if true, strengthens the argument that Kevin should be prepared with specific details about the product specifications and technology that will be used? A\) The Chinese firm has joint ventures with many international firms. B\) The Chinese firm is state-owned and located in Beijing. C\) The Chinese firm uses a two-stage negotiation process: the technical and the commercial. D\) The Chinese firm reportedly uses delay tactics during negotiations. Answer: C 87\. Fizzy is an American firm that manufactures carbonated soft drinks. Fizzy executives want to enter the global market, and they are considering the idea of a joint venture with a beverage company located overseas. After conducting research on different beverage firms, Fizzy executives selected a large beverage manufacturer located in China. Kevin Burns and three other top-level executives at Fizzy have been assigned to the negotiating team. The team has flown to China to negotiate the details of the joint venture. Which of the following best supports Kevin's argument that he should be the primary negotiator? A\) Kevin has an aggressive and explicit attitude. B\) Kevin leads all negotiations with domestic U.S. firms. C\) Kevin is the oldest and the most experienced person on the negotiating team. D\) Kevin has full knowledge of guanxi; therefore, he should lead the team. Answer: C 88\. What are the two negotiation stages that Americans should expect when negotiating with the Chinese? A\) informational and agreement B\) gift-exchange and socializing C\) propositions and marketing D\) technical and commercial Answer: D 89\. Which of the following is a common Chinese tactic used during negotiations with Americans? A\) refusing to answer the Americans' inquiries B\) suggesting that the Americans are reneging on their friendship C\) refusing to compromise until the last possible moment D\) asking for concessions relating to product cost and delivery time Answer: B 90\. Since the Chinese have a preference for emotional restraint and saving face, aggressive or emotional attempts at persuasion in negotiation are likely to fail. Answer: TRUE 91\. Which of the following cultures views formal contracts as insulting and wasteful, and prefers to make agreements based on mutual understanding and trust? A\) Swedes B\) Japanese C\) Russians D\) Americans Answer: B 92\. Which of the following is true about Japanese negotiators? A\) Personal benefit is the ultimate aim of the Japanese negotiators. B\) Japanese negotiators are often impulsive and make decisions spontaneously. C\) Japanese negotiators are outwardly expressive and take conflicts personally. D\) Japanese negotiators are calm and patient, and accustomed to long, detailed negotiating sessions. Answer: D 93\. Japanese negotiators tend to \_\_\_\_\_\_\_\_. A\) lack emotional sensitivity B\) be argumentative C\) hide emotions D\) lack commitment to their employers Answer: C 94\. In Japanese culture, the term \_\_\_\_\_\_\_\_ refers to a process which involves gaining approval on a proposal by circulating documents to those concerned throughout the company. It usually comprises four steps: proposal, circulation, approval, and record. A\) nemawashi B\) kaizen C\) shinyo D\) ringi Answer: D 95\. Which of the following is a typical characteristic of a Japanese work group? A\) open expression of conflicts B\) decision making based on a patient, long-term perspective C\) lack of cooperation D\) lack of mutual confidence Answer: B 96\. Fundamental to American culture is a concern for the welfare of the group; anything that affects one member or part of society affects the others. Answer: FALSE 97\. Risk tolerance is one of the cultural variables that never affects the decision-making process. Answer: FALSE 98\. The ringi process involves gaining approval on a proposal by circulating documents to those concerned throughout the company. Answer: TRUE 99\. What are the main differences between Japanese and American negotiators? Answer: The Japanese are calm, quiet, patient negotiators; they are accustomed to long, detailed negotiating sessions. Whereas Americans often plunge straight to the matter at hand, the Japanese instead prefer to develop long-term, personal relationships. The Japanese want to get to know those on the other side and will spend some time in nontask sounding. 100\. Describe the process of decision making that is common in Japanese companies. Answer: Japanese decision making is a very participative process, characterized by an elaborate and formal system for achieving consensus and agreement among everyone affected by a particular decision. This system, called the ringi system, works from the bottom up in contrast with the American centralized decision-making process, which takes a top-down approach. The ringi process consists of four steps: proposal, circulation, approval, and record. Let me know if you need further assistance!