BUSA 4000 Final Exam
Hofstede's Cultural Dimensions - CORRECT ANSWER-Individualism-Collectivism,
Power Distance, Uncertainty Avoidance, Masculinity-Femininity, and Long-Term--Short-
Term Orientation.
Individualism - CORRECT ANSWER-giving priority to one's own goals over group goals
and defining one's identity in terms of personal attributes rather than group
identifications. (Australia, Britain, Canada, and the U.S.)
Collectivism - CORRECT ANSWER-the practice or principle of giving a group priority
over each individual in it. (China, Panama, Japan, and South Korea)
power distance - CORRECT ANSWER-Degree to which societies accept the idea that
inequalities in the power and well-being of their citizens are due to differences in
individuals' physical and intellectual capabilities and heritage
high power distance - CORRECT ANSWER-exhibit big gaps between the weak and
power; in firms, top management tends to be autocratic, giving little autonomy to lower-
level employees. (Guatemala, Malaysia, Philippines, and several Middle Eastern
countries)
low power distance - CORRECT ANSWER-have small gaps between the weak and
powerful. Firms tend toward flat organizational structures, with relatively equal relations
between managers and working. (Scandinavian countries instituted various systems to
ensure socioeconomic equality.)
uncertainty avoidance - CORRECT ANSWER-refers to the extent to which people can
tolerate risk and uncertainty in their lives
high uncertainty avoidance - CORRECT ANSWER-societies create institutions to
minimize risk and ensure security. Firms emphasize stable careers and regulate worker
actions. Decisions are made slowly. Examples are Belgium, France, and Japan
low uncertainty avoidance - CORRECT ANSWER-managers are relatively
entrepreneurial and comfortable with risk. Firms make decisions quickly People are
uncomfortable changing jobs. (Examples: Ireland, Jamaica, U.S.)
Horizontal Integration - CORRECT ANSWER-Arrangement whereby the firm owns, or
seeks to own, the activities involved in a single state of its value chain. E.g., Microsoft
acquired a Montreal-based firm that makes software used to create movie animation.
, Organizing Framework - CORRECT ANSWER-Corporate Governance -> Ethics,
Corporate Social Responsibility, Sustainability
The Pyramid of Ethical Behavior - CORRECT ANSWER-1. corporate social
responsibility
2. ethical behavior
3. complying with laws and regulations
Ethics - CORRECT ANSWER-are moral principles and values that govern the behavior
of people, firms, and governments, regarding right and wrong
corruption - CORRECT ANSWER-the practice of obtaining power, personal gain, or
influence through illegitimate means, usually at others' expense. The abuse of power to
achieve illegitimate personal gain.
A major or severe concern in the global activities of a large proportion of MNE's.
Bribery - CORRECT ANSWER-refers to offering, giving, receiving, or soliciting anything
of value to influence the actions of a government official or a corporate manager.
is common and may take the form of grease payments, small inducements intended to
expedite decisions and transactions or gain favors.
The U.S Federal Corrupt Practices Act of 1977
Improper Ethical Behavior May Result When: - CORRECT ANSWER-•Top management
sets goals and incentives aimed at promoting good outcomes (e.g., profits) that instead
encourage bad behaviors.
•Employees overlook unethical behavior in others because of peer pressure or self-
interest.
•Managers tolerate lower ethical standards in value-chain activities performed by
suppliers or third-party firms.
•Unethical practices are allowed to accumulate in the firm slowly over time.
The Value of Ethical Behavior - CORRECT ANSWER-•Ethical behavior is simply the
right thing to do.
•Often prescribed within laws and regulations.
•Demanded by customers, governments, and the news media. Unethical firms risk
attracting unwanted attention.
•Ethical behavior is good business, leading to enhanced corporate image and selling
prospects. The firm with a strong reputation is advantaged in hiring and motivating
employees, partnering, and dealing with foreign governments.
ethical standards - CORRECT ANSWER-vary from country to country
Hofstede's Cultural Dimensions - CORRECT ANSWER-Individualism-Collectivism,
Power Distance, Uncertainty Avoidance, Masculinity-Femininity, and Long-Term--Short-
Term Orientation.
Individualism - CORRECT ANSWER-giving priority to one's own goals over group goals
and defining one's identity in terms of personal attributes rather than group
identifications. (Australia, Britain, Canada, and the U.S.)
Collectivism - CORRECT ANSWER-the practice or principle of giving a group priority
over each individual in it. (China, Panama, Japan, and South Korea)
power distance - CORRECT ANSWER-Degree to which societies accept the idea that
inequalities in the power and well-being of their citizens are due to differences in
individuals' physical and intellectual capabilities and heritage
high power distance - CORRECT ANSWER-exhibit big gaps between the weak and
power; in firms, top management tends to be autocratic, giving little autonomy to lower-
level employees. (Guatemala, Malaysia, Philippines, and several Middle Eastern
countries)
low power distance - CORRECT ANSWER-have small gaps between the weak and
powerful. Firms tend toward flat organizational structures, with relatively equal relations
between managers and working. (Scandinavian countries instituted various systems to
ensure socioeconomic equality.)
uncertainty avoidance - CORRECT ANSWER-refers to the extent to which people can
tolerate risk and uncertainty in their lives
high uncertainty avoidance - CORRECT ANSWER-societies create institutions to
minimize risk and ensure security. Firms emphasize stable careers and regulate worker
actions. Decisions are made slowly. Examples are Belgium, France, and Japan
low uncertainty avoidance - CORRECT ANSWER-managers are relatively
entrepreneurial and comfortable with risk. Firms make decisions quickly People are
uncomfortable changing jobs. (Examples: Ireland, Jamaica, U.S.)
Horizontal Integration - CORRECT ANSWER-Arrangement whereby the firm owns, or
seeks to own, the activities involved in a single state of its value chain. E.g., Microsoft
acquired a Montreal-based firm that makes software used to create movie animation.
, Organizing Framework - CORRECT ANSWER-Corporate Governance -> Ethics,
Corporate Social Responsibility, Sustainability
The Pyramid of Ethical Behavior - CORRECT ANSWER-1. corporate social
responsibility
2. ethical behavior
3. complying with laws and regulations
Ethics - CORRECT ANSWER-are moral principles and values that govern the behavior
of people, firms, and governments, regarding right and wrong
corruption - CORRECT ANSWER-the practice of obtaining power, personal gain, or
influence through illegitimate means, usually at others' expense. The abuse of power to
achieve illegitimate personal gain.
A major or severe concern in the global activities of a large proportion of MNE's.
Bribery - CORRECT ANSWER-refers to offering, giving, receiving, or soliciting anything
of value to influence the actions of a government official or a corporate manager.
is common and may take the form of grease payments, small inducements intended to
expedite decisions and transactions or gain favors.
The U.S Federal Corrupt Practices Act of 1977
Improper Ethical Behavior May Result When: - CORRECT ANSWER-•Top management
sets goals and incentives aimed at promoting good outcomes (e.g., profits) that instead
encourage bad behaviors.
•Employees overlook unethical behavior in others because of peer pressure or self-
interest.
•Managers tolerate lower ethical standards in value-chain activities performed by
suppliers or third-party firms.
•Unethical practices are allowed to accumulate in the firm slowly over time.
The Value of Ethical Behavior - CORRECT ANSWER-•Ethical behavior is simply the
right thing to do.
•Often prescribed within laws and regulations.
•Demanded by customers, governments, and the news media. Unethical firms risk
attracting unwanted attention.
•Ethical behavior is good business, leading to enhanced corporate image and selling
prospects. The firm with a strong reputation is advantaged in hiring and motivating
employees, partnering, and dealing with foreign governments.
ethical standards - CORRECT ANSWER-vary from country to country
