Luthans10e TB Ch07

Chapter 07 - Cross-Cultural Communication and Negotiation
Chapter 07
Cross-Cultural Communication and Negotiation
True/False Questions
1. Communication in the international arena is a straightforward process with minor difficulties.

Answer: False
Feedback: Communication is the process of transferring meanings from sender to receiver. On
the surface, this appears to be a fairly straightforward process. On analysis, however, there are a
great many problems in the international arena that can result in the failure to transfer meanings
correctly.
AACSB: Communication
Bloom's: Understand
Learning Objective: 07-01 DEFINE the term communication, examine some examples of verbal
communication styles, and explain the importance of message interpretation.
Level of Difficulty: 2 Medium
Topic: The Overall Communication Process
2. One of the most important ways of improving communication effectiveness in the

international context is to open up feedback systems.
Answer: True
Feedback: One of the most important ways of improving communication effectiveness in the
international context is to open up feedback systems. Feedback is particularly important between
parent companies and their affiliates.
Bloom's: Remember
Learning Objective: 07-04 PRESENT the steps that can be taken to overcome international
communication problems.
Level of Difficulty: 1 Easy
Topic: Achieving Communication Effectiveness
3. Messages are often highly coded and implicit in countries such as the United States and
Canada.
Answer: False
Feedback: In low-context societies, such as the United States and Canada, messages are explicit
and a speaker says precisely what he or she means.
Bloom's: Understand
4. It is very difficult to communicate effectively with someone from another culture unless at
least one party has some understanding of the other’s culture.
7-1
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Answer: True
Feedback: It is very difficult to communicate effectively with someone from another culture
unless at least one party has some understanding of the other’s culture. Otherwise,
communication likely will break down.
Bloom's: Remember
5. In high-context societies, the succinct style of communication is very common.

Answer: False
Feedback: In high-context societies, the elaborate style is often very common. There is a great
deal of talking, description includes much detail, and people often repeat themselves.
Bloom's: Understand
6. Effective international communications require flexibility and cooperation by just one of the
parties involved.
Answer: False
Feedback: Effective international communications require increased flexibility and cooperation
by all parties. To improve understanding and cooperation, each party must be prepared to give a
little.
Bloom's: Understand
7. American managers who are engaged in international communications should avoid using
generalized statements about benefits and compensation.
Answer: True
Feedback: Generalized statements about benefits, compensation, pay cycles, holidays, or policies
should not be used in worldwide communications. Work hours, vacation accrual, general
business practices, and human resource issues vary widely from country to country.
Bloom's: Remember
Learning Objective: 07-03 EXAMINE the language, perception, and culture of communication
and nonverbal barriers to effective international communications.
7-2
Topic: Communication Barriers
8. The affective style of communication is commonly found in collective, high-context cultures

such as the Middle East, Latin America, and Asia.
Answer: True
Feedback: The affective style of communication is commonly found in collective, high-context
cultures such as the Middle East, Latin America, and Asia.
Bloom's: Remember
9. The primary purpose of downward communication flow is to provide feedback, ask questions,
or obtain assistance from higher-level management.
Answer: False
Feedback: Downward communication is the transmission of information from manager to
subordinate. The primary purpose of the manager-initiated communication flow is to convey
orders and information.
Bloom's: Remember
Learning Objective: 07-02 ANALYZE the common downward and upward communication
flows used in international communication.
Topic: Communication Flows
10. Upward communication is the transfer of information from subordinate to superior.

Answer: True
Feedback: Upward communication is the transfer of information from subordinate to superior.
The primary purpose of this subordinate-initiated upward communication is to provide feedback,
ask questions, or obtain assistance from higher-level management.
Bloom's: Remember
11. Written communication has been getting increased attention, because poor writing is proving
to be a greater barrier than poor talking.
Answer: True
Feedback: Written communication has been getting increased attention, because poor writing is
proving to be a greater barrier than poor talking. For example, Hildebrandt has found that among
U.S. subsidiaries studied in Germany, language was a major problem when subsidiaries were
sending written communications to the home office.
7-3
Bloom's: Remember
12. Gestures present problems for expatriate managers because these behaviors have different
meanings depending on the country.
Answer: True
Feedback: Sometimes gestures present problems for expatriate managers because these behaviors
have different meanings depending on the country.
Bloom's: Understand
13. The ability to speak the language used at MNC headquarters is enough to ensure that the
personnel are capable of doing the work.
Answer: False
Feedback: Language education is a good beginning, but it is also important to realize that the
ability to speak the language used at MNC headquarters is often not enough to ensure that the
personnel are capable of doing the work.
Bloom's: Remember
14. Haptics is the study of the way that people use physical space to convey messages.
Answer: False
Feedback: Communicating through the use of bodily contact is known as haptics, and it is a
widely used form of nonverbal communication.
Bloom's: Remember
15. While communicating on a face-to-face basis, intimate distance is used for talking with
family and close friends.
Answer: False
7-4
Feedback: While communicating on a face-to-face basis, intimate distance is used for very
confidential communications.
Bloom's: Understand
16. Cultural training conducted on a regional or country-specific basis often results in continuous
communication breakdown.
Answer: False
Feedback: Cultural training must be conducted on a regional or country-specific basis. Failure to
do so can result in continuous communication breakdown.
Bloom's: Understand
17. Negotiation often follows assessing political environments and is a natural approach to
conflict management.
Answer: True
Feedback: Negotiation often follows assessing political environments and is a natural approach
to conflict management.
Bloom's: Remember
Learning Objective: 07-05 DEVELOP approaches to international negotiations that respond to
differences in culture.
Topic: Managing Cross-Cultural Negotiations
18. In cultures with monochronic time schedules, schedules are subordinated to personal
relationships.
Answer: False
Feedback: A monochronic time schedule is one in which things are done in a linear fashion. A
manager will address Issue A first and then move on to Issue B.
Bloom's: Understand
19. Time limits cannot be used tactically if the negotiators meet at a neutral site.
7-5
Answer: False
Feedback: Time limits can be used tactically even if the negotiators meet at a neutral site. For
example, most Americans like to be home with their families for Thanksgiving, Christmas, and
the New Year holiday. Negotiations held right before these dates put Americans at a
disadvantage, because the other party knows when the Americans would like to leave.
Bloom's: Remember
Learning Objective: 07-06 REVIEW different negotiating and bargaining behaviors that may
improve negotiations and outcomes.
20. The reason two parties are involved in a negotiation is because they both want a situation that
will leave them better off than before.
Answer: True
Feedback: The reason two parties are involved in a negotiation is because they both want a
situation that will leave them better off than before. Therefore, no matter how long negotiations
drag on, neither side should agree to terms that will leave it worse off than its best alternative to a
negotiated agreement.
Bloom's: Remember
Multiple Choice Questions
21. Communication is the process of:

A. transferring meanings from sender to receiver.
B. choosing a course of action among alternatives.
C. giving teams the resources they need to develop ideas and effectively implement them.
D. using reports and other written forms to control business operations.
Answer: A
Feedback: Communication is the process of transferring meanings from sender to receiver. On
the surface, this appears to be a fairly straightforward process. On analysis, however, there are a
great many problems in the international arena that can result in the failure to transfer meanings
correctly.
Bloom's: Remember
7-6
22. _____ is the information that surrounds a communication and helps convey the message.
A. Contingency
B. Stipulation
C. Context
D. Circumstance
Answer: C
Feedback: Context is information that surrounds a communication and helps convey the
message. It plays a key role in explaining many communication differences.
Bloom's: Remember
23. Messages are implicit and often highly coded in:

A. low-context societies.
B. moderate-context societies.
C. high-context societies.
D. variable-context societies.
Answer: C
Feedback: In high-context societies, such as Japan and many Arab countries, messages are often
highly coded and implicit. As a result, the receiver’s job is to interpret what the message means
by correctly filtering through what is being said and the way in which the message is being
conveyed.
Bloom's: Understand
24. In terms of verbal communication styles, an example of a low-context society is _____.

A. Canada
B. Japan
C. Italy
D. Brazil
Answer: A
Feedback: In low-context societies such as the United States and Canada, the message is explicit
and the speaker says precisely what he or she means.
Bloom's: Remember
7-7
25. In terms of verbal communication styles, an example of a high-context society is _____.

A. Iceland
B. Australia
C. Canada
D. Japan
Answer: D
Feedback: In high-context societies, such as Japan and many Arab countries, messages are often
highly coded and implicit. As a result, the receiver's job is to interpret what the message means
by correctly filtering through what is being said and the way in which the message is being
conveyed.
Bloom's: Remember
26. Researchers have found that the contextual style of communication is often associated with:
A. low-power-distance, collective, high-context cultures.
B. low-power-distance, individualistic, high-context cultures.
C. high-power-distance, individualistic, low-context cultures.
D. high-power-distance, collective, high-context cultures.
Answer: D
Feedback: Researchers have found that the contextual style is often associated with high power-
distance, collective, high-context cultures. Examples include Japan, India, and Ghana.
Bloom's: Understand
27. Which of the following are the three degrees of communication quantity?
A. Elaborate, exacting, and succinct
B. Unified, equivocal, and refined
C. Succinct, affective, and precise
D. Flexible, detailed, and fixed
Answer: A
Feedback: There are three degrees of communication quantity—elaborate, exacting, and
succinct. In high-context societies, the elaborate style is often very common.
Bloom's: Remember
7-8
28. The steps taken to improve communication effectiveness in the international arena include all
of the following except:
A. improving feedback systems.
B. incorporating U.S. values regarding time into international operations.
C. providing language and cultural training.
D. increasing flexibility and cooperation.
Answer: B
Feedback: A number of steps can be taken to improve communication effectiveness in the
international arena. These include improving feedback systems, providing language and cultural
training, and increasing flexibility and cooperation.
Bloom's: Understand
29. Which of the following styles of communication focuses on precision and the use of the right
amount of words to convey the message?
A. Flexible
B. Succinct
C. Elaborate
D. Exacting
Answer: D
Feedback: The exacting style is more common in nations such as England, Germany, and
Sweden. This style focuses on precision and the use of the right amount of words to convey the
message.
Bloom's: Remember
30. The _____ communication style is most common in Asia, where people tend to say few
words and allow understatements, pauses, and silence to convey meaning.
A. succinct
B. exacting
C. flexible
D. elaborate
Answer: A
Feedback: The succinct style is most common in Asia, where people tend to say few words and
allow understatements, pauses, and silence to convey meaning. In particular, in unfamiliar
situations, communicators are succinct in order to avoid risking a loss of face.
7-9
Bloom's: Remember
31. Which of the following styles of communication focuses on the speaker and relationship of
the parties?
A. Personal
B. Contextual
C. Individual
D. Indigenous
Answer: B
Feedback: A contextual style is one that focuses on the speaker and relationship of the parties.
For example, in Asian cultures people use words that reflect the role and hierarchical relationship
of those in the conversation.
Bloom's: Remember
32. A(n) _____ style of communication focuses on the speaker and the reduction of barriers
between the parties.
A. personal
B. contextual
C. affective
D. instrumental
Answer: A
Feedback: A personal style focuses on the speaker and the reduction of barriers between the
parties. In the United States, for example, it is common to use first names and to address others
informally and directly on an equal basis.
Bloom's: Remember
33. In contrast to the contextual style, the personal style is more popular in:
A. low-power-distance, collective, high-context cultures.
B. low-power-distance, individualistic, low-context cultures.
C. high-power-distance, individualistic, low-context cultures.
D. high-power-distance, collective, high-context cultures.
7-10
Answer: B
Feedback: In contrast, the personal style is more popular in low-power-distance, individualistic,
low-context cultures. Examples include the United States, Australia, and Canada.
Bloom's: Understand
34. Tactics used in international negotiation include:

A. location, time limits, and buyer-seller relations.
B. buyer-seller relations, verbal behaviors, and chromatics.
C. location, barrier-free linguistics, and nonverbal behaviors.
D. time limits, mental imaging, and buyer-seller relations.
Answer: A
Feedback: A number of specific tactics are used in international negotiation including location,
time limits, and buyer-seller relations.
Bloom's: Understand
35. The _____ style of communication is characterized by language that requires the listener to
carefully note what is being said and to observe how the sender is presenting the message.
A. instrumental
B. conductive
C. affective
D. facilitating
Answer: C
Feedback: The affective style is characterized by language that requires the listener to carefully
note what is being said and to observe how the sender is presenting the message. Quite often the
meaning that is being conveyed is nonverbal and requires the receiver to use his or her intuitive
skills in deciphering what is being said.
Bloom's: Remember
36. The transmission of information from manager to subordinate is referred to as:

A. lateral communication.
B. upward communication.
7-11
C. downward communication.
D. horizontal communication.
Answer: C
Feedback: Downward communication is the transmission of information from manager to
orders and information.
Bloom's: Remember
37. _____ do not use silent periods at all during negotiations, but they do make frequent use of
other nonverbal behaviors.
A. Brazilians
B. Japanese
C. Arabians
D. Americans
Answer: A
Feedback: John Graham, in his research, found that the Japanese tend to use silent periods much
more often than either Americans or Brazilians during negotiations. The Brazilians did not use
them at all. The Brazilians did, however, make frequent use of other nonverbal behaviors.
Bloom's: Remember
38. The primary purpose of subordinate-initiated upward communication is to:

A. convey orders and information.
B. let individuals know what is to be done and how well they are doing.
C. provide feedback, ask questions, or obtain assistance from higher-level management.
D. facilitate the flow of information to those who need it for operational purposes.
Answer: C
Feedback: Upward communication is the transfer of information from subordinate to superior.
The primary purpose of this subordinate-initiated upward communication is to provide feedback,
ask questions, or obtain assistance from higher-level management.
Bloom's: Understand
7-12
39. In the context of writing business letters of complaint, Park, Dillon, and Mitchell reported
that American writers:
A. used a direct organizational pattern.
B. shared explanatory details related to a problem first.
C. tended to delay the reader’s discovery of the main point.
D. used vague, emotional, and accusatory characters.
Answer: A
Feedback: Park, Dillon, and Mitchell found that American writers used a direct organizational
pattern when writing business letters of complaint. They tended to state the main idea or problem
first before sharing explanatory details that clearly related to the stated problem.
Bloom's: Understand
40. Oculesics refers to communicating through the use of _____.

A. eye contact and gaze
B. physical space
C. bodily contact
D. artifacts and charts
Answer: A
Feedback: The nonverbal method of communicating through the use of eye contact and gaze is
known as oculesics. In some areas of the world, oculesics is an important consideration because
of what people should not do, such as stare at others or maintain continuous eye contact, because
it is considered impolite to do these things.
Bloom's: Remember
41. Haptics refers to communicating through the use of _____.

A. eye contact and gaze
B. physical space
C. bodily contact
D. artifacts and charts
Answer: C
Feedback: Communicating through the use of bodily contact is known as haptics, and it is a
widely used form of nonverbal communication.
Bloom's: Remember
7-13

42. Canadians shake hands, Japanese bow, and Middle Easterners of the same sex kiss on the
cheek. These gestures are examples of _____.
A. chromatics
B. haptics
C. chronemics
D. proxemics
Answer: B
Feedback: Gestures are widely used and take many different forms. For example, Canadians
shake hands, Japanese bow, and Middle Easterners of the same sex kiss on the cheek.
Communicating through the use of bodily contact is known as haptics, and it is a widely used
form of nonverbal communication.
Bloom's: Remember
43. During the planning stage of negotiations, consideration should be given to all of the
following areas except:
A. determining the location in which to discuss the various issues.
B. setting limits on single-point objectives.
C. dividing issues into short- and long-term considerations and deciding how to handle each.
D. focusing on common ground between the parties.
Answer: A
Feedback: During the planning stage of negotiations, consideration is given to areas of common
ground between the parties. Other major areas include (1) the setting of limits on single-point
objectives, such as deciding to pay no more than $10 million for the factory and $3 million for
the land; (2) dividing issues into short- and long-term considerations and deciding how to handle
each; and (3) determining the sequence in which to discuss the various issues.
Bloom's: Understand
44. Which of the following "distances" is used for communicating very confidential messages?
A. Social
B. Public
C. Personal
D. Intimate
Answer: D
7-14
Feedback: Proxemics is the study of the way that people use physical space to convey messages.
Intimate distance is used for very confidential communications.
Bloom's: Remember
45. Which of the following "distances" is used for talking with family and close friends?
A. Intimate
B. Social
C. Personal
D. Public
Answer: C
Personal distance is used for talking with family and close friends.
Bloom's: Remember
46. _____ distance is used to handle most business transactions while communicating on a face-
to-face basis.
A. Social
B. Public
C. Personal
D. Intimate
Answer: A
Social distance is used to handle most business transactions.
Bloom's: Remember
47. _____ distance is used when calling across the room or giving a talk to a group.
A. Personal
B. Public
C. Intimate
D. Social
Answer: B
7-15
Public distance is used when calling across the room or giving a talk to a group.
Bloom's: Remember
48. A good example of proxemics is _____.

A. office layout
B. eye gaze
C. business structure
D. body language
Answer: A
Feedback: Office layout is good example of proxemics. In the United States, the more important
the manager, the larger the office, and often a secretary screens visitors and keeps away those
whom the manager does not wish to see.
Bloom's: Remember
49. Chronemics refers to the way in which _____.

A. color is used in a culture
B. time is used in a culture
C. posture is used to communicate
D. touch is used to communicate
Answer: B
Feedback: Chronemics refers to the way in which time is used in a culture. When examined in
terms of extremes, there are two types of time schedules: monochronic and polychronic.
Bloom's: Remember
50. A monochronic time schedule is one in which:

A. things are done in a linear fashion.
B. people tend to do several things at the same time irrespective of the amount of work involved.
C. people tend to place higher value on personal involvement than on getting things done on
time.
D. things are done in a random way.
7-16
Answer: A
Feedback: A monochronic time schedule is one in which things are done in a linear fashion. A
manager will address Issue A first and then move on to Issue B.
Bloom's: Understand
51. Chromatics is the use of:

A. sound to communicate messages.
B. symbols to communicate messages.
C. gestures to communicate messages.
D. color to communicate messages.
Answer: D
Feedback: Chromatics is the use of color to communicate messages. Every society uses
chromatics, but in different ways.
Bloom's: Understand
52. In the United States, it is common to wear black when one is in mourning, while in some
locations in India people wear white when they are in mourning. This is an example of:
A. chronemics.
B. chromatics.
C. proxemics.
D. haptics.
Answer: B
Feedback: Chromatics is the use of color to communicate messages. Every society uses
chromatics, but in different ways. Colors that mean one thing in the United States may mean
something entirely different in Asia.
Bloom's: Remember
53. Which of the following is a persuasion tool generally used by the Japanese during
negotiations?
A. Time pressure
B. Intergroup connections
7-17
C. Hospitality
D. Emphasis on family
Answer: B
Feedback: A persuasion tool generally used by the Japanese during negotiations is intergroup
connections.
Bloom's: Remember
54. In which of the following countries do people like to be greeted by their title?
A. Germany
B. Japan
C. Mexico
D. Arab countries
Answer: A
Feedback: German executives like to be greeted by their title, and one should never refer to
someone on a first-name basis unless invited to do so.
Bloom's: Remember
55. Which of the following terms refers to the process of bargaining with one or more parties for
the purpose of arriving at a solution that is acceptable to all?
A. Negotiation
B. Empowerment
C. Propitiation
D. Codetermination
Answer: A
Feedback: Negotiation is the process of bargaining with one or more parties to arrive at a
solution that is acceptable to all. It has been estimated that managers can spend 50 percent or
more of their time on negotiation processes.
Bloom's: Remember
56. Which of the following statements about negotiation is false?
7-18
A. It is used in creating joint ventures with local firms and in getting the operation off the
ground.
B. It is a learnable skill that is imperative for the international manager but not for the domestic
manager.
C. It often follows assessing political environments.
D. It can be used as an approach to conflict management.
Answer: B
Feedback: It has been estimated that managers can spend 50 percent or more of their time on
negotiation processes. Therefore, it is a learnable skill that is imperative not only for the
international manager but for the domestic manager as well, since more and more domestic
businesses are operating in multicultural environments.
Bloom's: Understand
57. Which of the following statements about integrative negotiation is true?

A. It occurs when two parties with opposing goals compete over a set value.
B. It is characterized by overlapping interests.
C. It focuses on the individual relationships and is based on a short-term interaction.
D. It often results in a win-lose situation.
Answer: B
Feedback: Integrative negotiation involves cooperation between two groups to integrate interests,
create value, and invest in the agreement. It is characterized by overlapping interests.
Bloom's: Understand
58. Which of the following statements about distributive negotiation is true?

A. It occurs when two parties with opposing goals compete over a set value.
B. It focuses on reaching a best-case outcome where everyone benefits.
C. It is characterized by overlapping interests.
D. It involves cooperation between two groups to integrate interests, create value, and invest in
an agreement.
Answer: A
Feedback: Distributive negotiations occur when two parties with opposing goals compete over a
set value. Integrative negotiation involves cooperation between the two groups to integrate
interests, create value, and invest in the agreement.
Bloom's: Remember
7-19

59. Which of the following tends to reduce understanding in cross-cultural negotiations?

A. Not identifying a counterpart's home culture too quickly
B. Accepting the tendency to formulate simple, consistent, stable images
C. Being aware of the Western bias toward "doing"
D. Not overestimating one's familiarity with his or her counterpart's culture
Answer: B
Feedback: One negotiation expert recommends that counteracting the tendency to formulate
simple, consistent, and stable images can improve understanding in cross-cultural negotiations.
Bloom's: Understand
60. In the context of negotiations, _____ starts with the negotiators identifying the objectives
they would like to attain.
A. planning
B. interpersonal relationship building
C. exchanging task-related information
D. persuasion
Answer: A
Feedback: Planning starts with the negotiators identifying the objectives they would like to
attain. Then they explore the possible options for reaching these objectives.
Bloom's: Remember
61. In which of the following steps of the negotiation process does each group set forth its
position on critical issues?
A. Persuasion
B. Exchanging task-related information
C. Interpersonal relationship building
D. Planning
Answer: B
Feedback: While exchanging task-related information during the negotiation process, each group
sets forth its position on the critical issues. These positions often will change later in the
7-20
negotiations. At this point, the participants are trying to find out what the other party wants to
attain and what it is willing to give up.
Bloom's: Remember
62. Which of the following steps in the negotiation process comes after exchanging task-related
information?
A. Interpersonal relationship building
B. Planning
C. Identifying objectives
D. Persuasion
Answer: D
Feedback: In the negotiation process, persuasion takes place after exchanging task-related
information. It is considered by many to be the most important step of negotiations. No side
wants to give away more than it has to, but each knows that without giving some concessions, it
is unlikely to reach a final agreement.
Bloom's: Remember
63. The final step in the negotiation process is:

A. the persuasion phase.
B. interpersonal relationship building.
C. the agreement phase.
D. exchanging task-related information.
Answer: C
Feedback: Agreement is the final phase of negotiations, which involves the granting of
concessions and hammering out a final agreement. Sometimes, this phase is carried out
piecemeal, and concessions and agreements are made on issues one at a time.
Bloom's: Remember
64. According to Trompenaars and Hampden-Turner, U.S. negotiators:

A. tend to open negotiations with an extreme initial position.
B. tend to use an emotional appeal in their negotiation style.
7-21
C. believe it is important to be factual and objective while negotiating.

D. treat deadlines as only general guidelines for wrapping up negotiations.
Answer: C
Feedback: U.S. negotiators have a style that often differs from that of negotiators in many other
countries. Americans believe it is important to be factual and objective.
Bloom's: Understand
65. Research by Trompenaars and Hampden-Turner shows that Arab negotiators:

A. tend to open negotiations with a neutral initial position.
B. analyze things subjectively and treat deadlines as only general guidelines for wrapping up
negotiations.
C. do not believe in making concessions and never reciprocate an opponent's concessions.
D. never use an emotional appeal in their negotiation style.
Answer: B
Feedback: Arabs negotiators, who in contrast to Americans, with their logical approach, tend to
use an emotional appeal in their negotiation style. They analyze things subjectively and treat
deadlines as only general guidelines for wrapping up negotiations. They tend to open
negotiations with an extreme initial position.
Bloom's: Understand
66. Which of the following places would be the best neutral site for a Brazilian firm carrying on
negotiations with an Italian firm?
A. Milan
B. Sardinia
C. Florence
D. New York City
Answer: D
Feedback: If the matter is very important, most businesses will choose a neutral site for
negotiations. For example, U.S. firms negotiating with companies from the Far East will meet in
Hawaii, and South American companies negotiating with European firms will meet halfway, in
New York City.
Bloom's: Apply
Level of Difficulty: 3 Hard
7-22
67. Which of the following is not a principle advocated by Fisher and Ury, authors of the book
Getting to Yes, to help avoid disasters while negotiating for mutual benefit?
A. Separate the people from the problem
B. Focus on positions rather than interests
C. Generate a variety of options before settling on an agreement
D. Insist that the agreement be based on objective criteria
Answer: B
Feedback: Fisher and Ury, authors of the book Getting to Yes, present five general principles to
help avoid disasters while negotiating for mutual benefit: (1) separate the people from the
problem, (2) focus on interests rather than positions, (3) generate a variety of options before
settling on an agreement, (4) insist that the agreement be based on objective criteria, and (5)
stand one's ground.
Bloom's: Understand
68. In the context of negotiations, all of the following is true of a neutral third party except that:
A. he or she can be bought in to assess the desires of each side.
B. he or she can compose an initial proposal.
C. he or she has the last word in what the true "final draft" is.
D. he or she has the right to force the parties to the negotiation to accept its proposal.
Answer: D
Feedback: While negotiating, if no common ground is reached, a neutral third party can come in
to assess the desires of each side and compose an initial proposal. Each group has the right to
suggest alternative approaches, but the third-party person has the last word in what the true "final
draft" is. If the parties decide it is still unacceptable, then it is time to walk away from
negotiations.
Bloom's: Understand
69. Which of the following is not a reason why an extreme bargaining position tends to produce
better results?
A. It shows the other party that the bargainer will not be exploited.
B. It extends the negotiation and gives the bargainer a better opportunity to gain information on
the opponent.
C. It lets the bargainer gain less than would probably be possible if a more extreme initial
position had been taken.
7-23
D. It modifies the opponent's beliefs about the bargainer's preferences.

Answer: C
Feedback: Research shows that extreme positions tend to produce better results. Some of the
reasons relate to the fact that an extreme bargaining position (1) shows the other party that the
bargainer will not be exploited, (2) extends the negotiation and gives the bargainer a better
opportunity to gain information on the opponent, (3) allows more room for concessions, (4)
modifies the opponent's beliefs about the bargainer's preferences, (5) shows the opponent that the
bargainer is willing to play the game according to the usual norms, and (6) lets the bargainer gain
more than would probably be possible if a less extreme initial position had been taken.
Bloom's: Understand
70. Research conducted by John L. Graham shows that during a buyer-seller negotiation
simulation:
A. Brazilians use a discussion of rewards and commands less than Americans.
B. Brazilians use self-disclosures more than Americans.
C. Americans make first offers that have equal profit levels as their opponents.
D. Americans make more use of commands than their Japanese counterparts.
Answer: B
Feedback: During a buyer-seller negotiation simulation, Brazilians use self-disclosures more
than Americans.
Bloom's: Understand
Essay Questions
71. Briefly describe the three degrees of communication quantity.

Answer: There are three degrees of communication quantity—elaborate, exacting, and succinct.
In the elaborate style, there is a great deal of talking, description includes much detail, and
people often repeat themselves. The exacting style focuses on precision and the use of the right
amount of words to convey the message. The succinct style is most common in Asia, where
people tend to say few words and allow understatements, pauses, and silence to convey meaning.
Bloom's: Understand
7-24
72. What is the difference between downward communication and upward communication?
What is the primary purpose of each?
Answer: Downward communication is the transmission of information from manager to
orders and information. Managers use this channel to let their people know what is to be done
and how well they are doing. The channel facilitates the flow of information to those who need it
for operational purposes. Upward communication is the transfer of information from subordinate
to superior. The primary purpose of this subordinate-initiated upward communication is to
provide feedback, ask questions, or obtain assistance from higher-level management.
Bloom's: Understand
73. How does culture impact communication?

Answer: Culture is a major barrier to communication besides language and perception. Culture
can affect communication in a number of ways, and one way is through the impact of cultural
values. Cultural differences can cause misinterpretations both in how others see expatriate
managers and in how the latter see themselves. Culture even affects day-to-day activities of
corporate communications. For example, when sending messages to international clients,
American managers have to keep in mind that there are many things that are uniquely American
and overseas managers may not be aware of them.
Bloom's: Understand
74. Define negotiation and explain the basic steps in the negotiation process.
Answer: Negotiation is the process of bargaining with one or more parties to arrive at a solution
that is acceptable to all. This process involves five basic steps: planning, interpersonal
relationship building, exchanging task-related information, persuasion, and agreement. Planning
starts with the negotiators identifying the objectives they would like to attain. Then they explore
the possible options for reaching these objectives. Interpersonal relationship building, the second
phase of the negotiation process, involves getting to know the people on the other side. This
"feeling out" period is characterized by the desire to identify those who are reasonable and those
who are not. In exchanging task-related information, the third phase of negotiations, each group
sets forth its position on the critical issues. The fourth step of negotiation is persuasion, which is
considered by many to be the most important step. Agreement, the final phase of negotiations is
the granting of concessions and hammering out a final agreement. Sometimes, this phase is
carried out piecemeal and concessions and agreements are made on issues one at a time.
7-25
Bloom's: Understand
75. Explain the wide variety of tactics used in international negotiation.

Answer: There are a wide variety of tactics used in international negotiation. These include
location, time limits, and buyer-seller relations. Both parties to a negotiation stand to derive a
number of benefits from using a neutral site for negotiations. One is that each party has limited
access to its home office for receiving a great deal of negotiating information and advice and
thus gaining an advantage on the other. Time limits are an important negotiation tactic when one
party is under a time constraint. Time limits can be used tactically even if the negotiators meet at
a neutral site. Different countries perceive buyer-seller relations in different ways. For example,
Americans believe in being objective and trading favors. The Japanese, in contrast, believe that
the buyers should get most of what they want.
Bloom's: Understand
7-26

Luthans10e TB Ch07

Uploaded by

Copyright:

Available Formats

Luthans10e TB Ch07

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Luthans10e TB Ch07

Uploaded by

Copyright:

Available Formats

Chapter 07 - Cross-Cultural Communication and Negotiation

1. Communication in the international arena is a straightforward process with minor difficulties.

2. One of the most important ways of improving communication effectiveness in the

5. In high-context societies, the succinct style of communication is very common.

Topic: Communication Barriers

8. The affective style of communication is commonly found in collective, high-context cultures

10. Upward communication is the transfer of information from subordinate to superior.

Multiple Choice Questions

21. Communication is the process of:

23. Messages are implicit and often highly coded in:

24. In terms of verbal communication styles, an example of a low-context society is _____.

25. In terms of verbal communication styles, an example of a high-context society is _____.

Topic: The Overall Communication Process

34. Tactics used in international negotiation include:

36. The transmission of information from manager to subordinate is referred to as:

38. The primary purpose of subordinate-initiated upward communication is to:

40. Oculesics refers to communicating through the use of _____.

41. Haptics refers to communicating through the use of _____.

Level of Difficulty: 1 Easy

48. A good example of proxemics is _____.

49. Chronemics refers to the way in which _____.

50. A monochronic time schedule is one in which:

51. Chromatics is the use of:

56. Which of the following statements about negotiation is false?

57. Which of the following statements about integrative negotiation is true?

58. Which of the following statements about distributive negotiation is true?

Learning Objective: 07-05 DEVELOP approaches to international negotiations that respond to

59. Which of the following tends to reduce understanding in cross-cultural negotiations?

63. The final step in the negotiation process is:

64. According to Trompenaars and Hampden-Turner, U.S. negotiators:

C. believe it is important to be factual and objective while negotiating.

65. Research by Trompenaars and Hampden-Turner shows that Arab negotiators:

Topic: Managing Cross-Cultural Negotiations

D. It modifies the opponent's beliefs about the bargainer's preferences.

71. Briefly describe the three degrees of communication quantity.

Topic: The Overall Communication Process

73. How does culture impact communication?

75. Explain the wide variety of tactics used in international negotiation.

You might also like