Unit 1

A
1 F (Most companies, in fact, start dipping their toes into foreign waters long before they
reach domestic saturation .
2 N (No best way is suggested. Setting up subsidiaries is only one way.)
3 F (It had been known for years that working across cultures poses special problems
4 T (. .. Hofstede showed that a huge variety of beliefs and values were present in the
workplace
5 F (Much more difficult to manage are the cultural differences that arise
6 N (China is given as an example of a country where Western companies have had particular
problems, but we don't know if it is the most difficult country.)
7 T {What appears to be a barrier. however, can actually be a source of competitive advantage
for those companies and managers
B
1 Dutch
2 In the 1970s and 19805
3 Because it was a large global company with a very strong corporate culture, which might
override the local cultures where it operated. Hofstede set out to see if this was true or not.
4 Because in Spanish, no va means 'won't go'.
5 Because in Europe, there has been a tradition of luxury car-making, and customers have
strong loyalty to local brands. In the US, the Lexus offered something different to domestic
models.
6 They can reposition brands, and change the advertising or the product features to suit local
sensitivities and expectations.
7 Firstly, because Chinese workers expect to be managed in a strong, authoritarian way, and
even expect managers to help them with problems in their private lives. Secondly, there are
language problems and different attitudes to ethics, reporting systems and workers' rights.
8 It can give companies extra advantages because of the exchange of ideas, which sometimes
leads to innovations.
Vocabulary
1b
2a
3a
4b
5a
6a
7b
8b
9b

B
1 overseas markets
2 to exploit
3 subsidiaries
4 poses
5 beliefs
6 values
7 preserve
8 loyalty
9 barriers
10 repositioning
11 establish
12 directive
13 to sort out
14 cross·fertilisation

D
1 subsidiaries
2 overseas
3 exploit
4 reposition
5 establish
Unit 2
Reading

D
1 Statement 2

B
1 Business people have daily interaction at a distance with clients, business partners and
colleagues from many other countries without the need to travel or live abroad.
2 They are run globally and around the clock, starting for example in Europe, then being
handed over to the US, then to Asia and finally back to Europe.
3 There can be a big contrast in communication styles, cultures and expectations between
people from different cultures.
4 They need to have employees with the right interpersonal and management skills.
5 Research into differences in personality traits between businesspeople from different
countries.
6 They questioned nearly 7,500 managers and executives in more than 500 organisations
across 12 countries
7 Emotional balance, extroversion, conscientiousness. agreeableness, and openness to new
experiences.
8 The fact that agreeableness and emotional balance account for the biggest differences
between managers and executives working across different countries.
9 Managers in the UK had among the lowest scores on agreeableness, and received only
average scores in emotional balance. They scored high on extroversion.
10 Managers in Saudi Arabia and Japan are more concerned about maintaining group
harmony, and seem more in touch with their emotions and feelings, but they are less inclined
to speak openly.
11 Because UK managers may not put as much emphasis on group harmony, they may appear
abrupt or non-caring to managers in Japan or Saudi Arabia.
12 Because managers in the UK and China score very differently on extroversion, activities
such as brainstorming could be very unsuccessful with Chinese colleagues.

Vocabulary
A
EX1 1 d 2 c 3 b 4 e 5 a
EX 2 a) 3 b) 5 c) 2 d) 4 e) 2 f) 1 g) 3 h) 1 i) 5 j) 4

B
1 effort 2 abrupt; non-caring 3 interaction 4 expectations 5 interpersonal 6 Traits 7 inclined 8
come across 9 met with resistance 10 harmony
C
1 leaders (line 1)
2 colleagues (lines 2-3)
3 overseas (line 4)
4 clients (line 7)
5 vendors (Line 7)
6 around-the-clock (lines 14-15)
7 executives (line 36)
8 organisations (line 37)
9 survey (line 38)
10 alone (line 86)

D
1 in
2 at
3 up
4 for
5 about
6 with
7 with
8 on
9 of
UNIT 3

Reading

A
1c
2 To give a long explanation of the matter under discussion rather than express views directly.
3 By unanimous consent, with a lot of meetings before the meeting to make sure there are no
surprises. Everyone has a chance to express their views and ideas.

B 1 Because a whiteboard is used during informal discussions and brainstorming with

employees, which is not the way that Japanese executives work.
2 To express their views, to engage in brainstorming, to be a little less formal, to discuss the
issues, to communicate openly and understandably (to a non-Japanese).
3 Because Japan has a very hierarchical culture. In business, this means that junior employees
are not expected to speak in fronl of people more senior than them.
4 Because of the Japanese desire for unanimous consent and their need for careful and
detailed planning; this means that everything takes a long time.
5 Consensus decision·making is where everyone can give their opinion about the issue, then a
senior person takes the decision, which is then supported by everyone. Decision·making by
unanimous consent is where everyone has to agree and one person can stop the decision.
Federico Sacasa prefers consensus decision·making.
6 The Japanese are very process·oriented and often do things over and over again till they are
right. Mr Sacasa believes in doing things right the first time.
7 They know it will be difficult to gel the Japanese to change their working practices. but
believe they will achieve it in the end.

Vocabulary
A 1 a 2 a 3 b 4 b 5 b 6 a 7 a 8 b 9 a 10 b 11 b 12 a 13 b
B 1f 2 d 3 e 4 b 5 c 6 a
C
Japanese style Western style
give a long explanation epress idea
formal, prefer presentations
need for unanimous consent to make a decision have a discussion of the issues and
the logic
meticulous planning
focus on processes, lots of checking free, open expression
respect for each stage of the process communicate openly

UNIT 4

Reading
A
1 Statement c
2 To use just part of its US business model for the Chinese market at first, and to add other
parts gradually as the market grew and became more established.
3 It has been very successful. Dell's market share grew by 60 per cent per year from 2000 to
2005, and is forecast to continue growing at twice the rate of the overall PC market.

B 1 When Marco Polo discovered that the Chinese used paper currency. he realised that it
was unnecessary to bring coins from Europe. In the same way, foreign companies entering the
Chinese market should bring only what is really needed and leave other parts of their Western
business model behind.
2 1998
3 It allowed the company to use elements of its experience from the US without having to
invent a new way of doing business for China.
4 The country's rutes are often unpredictable.
5 Either importing its complete business model and trying to apply it in China, for which it is
unlikely to be wholly suitable, or inventing a completely new business model, which means
losing valuable experience from other markets.
6 Dell used a simpler form of their US model at first - they sold only desktop PCs 10 corporate
customers.
7 They had to set up a system for payment on delivery, as credit cards were not widely used.
8 The biggest danger is importing a Western business model that is not adapted to the Chinese
context and is too expensive to operate.
9 Foo Piau Phang
Vocabulary
A 1 a 2 a 3 b 4 a 5 b 6 b 7 b 8 a 9 b 10b 11 b

B
1 capabilities
2 localise 3 unpredictable 4 core 5 incorporate 6 diminish 7 tenure 8 eligible 9 adjustments
C 1 f/g 2 a/c/h 3 e 4 f/g 5 i 6 d 7 a/c/h 8 b 9 a/c/h

UNIT 5
A
1 It is very large and it has sports and leisure facilities more common in a holiday resort.
2 It will be a hub for markets in South· East Asia and the Middle East.
3 To attract and keep the best employees it can.

B 1 $50m 2 14 acres 3 2007 4 1,000 5 10,000 6 $Ubn 7 20 per cent 8 ahout 20 9 8to 9 per cent 10
10 percent or more 11 $750m 12 $l00m 13 $150m
C
1 N (Only four are mentioned: cricket, basketbaU, aerobics and yoga.)
2 F ( ... as Cisco's largest research·and·design centre outside the US is called ... (tines 7-9))
3 T (Although (isco has/ow attrition rates ora to 9 per cent compared with double·digit rotes at
other companies ... (lines 33-35))
4 F (Ciseo is betting on India as its eastern hemisphere hub, with Bangalare a short flight {ram
the world's leading emerging markets in Asia and the Middle East. (lines 48-52))
5 N (No figure is mentioned.)

Vocabulary
A
1 attrition 2 to replicate 3 to put the finishing touches to 4 to target 5 to base 6 to relocate 7 to
shift a frivolous 9 amenities 10 to diversify 11 to hop 12 beachhead 13 to position yourself 14
hub 15 to retain
B
1 attrition 2 amenities; retain 3 beachhead 4 relocated 5 based 6 shift; replicate 7 diversifying;
positionirlg a target 9 hop 10 hub 11 frivolous 12 putting the finishing touches to
C
1 to 2 in 3 in 4 into Son 6 to 7 to 8 of
D
1 largest 2 elegant 3 growing 4 state·of·the·art Slow 6 retaining 7 frivolous 8 massive 9
cutting·edge 10 expansion
Unit 6
Reading:
Understanding the main points:
A
1 Statement a
2 They have been invited by Schindler, which wants to demonstrate its latest elevators to show
how modern and safe they are.
3 As far as we know, the accident is still being investigated by the police.
4 Because in their eyes, to apologize before they had investigated what caused the accident
would have been an admission that the company was legally at fault.
5 Because a company in Japan has a social responsibility to the whole of society.
6 When doing business in a foreign culture, the local rules and customs may be different; and
if you ignore them, it can be very expensive.
Understanding details:
B
1 Because it has some of the latest elevators built by Schindler.
2 Switzerland
3 In 2006, in a Tokyo housing complex
4 It was carried out by two maintenance operators unconnected to Schindler.
5 They are taking legal action against Schindler and also against the two maintenance
providers who serviced
the elevator.
6 They did not cooperate with the local investigators, nor did they apologize for the accident.
7 Yes, the Company has since apologized many times.
S Mitsubishi Fuso is a truck maker owned by Oaimler. Faulty parts on the trucks caused
deaths and injuries in
2005. But the company apologized publicly, and the company President took flowers to a
cemetery as part of
this apology to show sympathy for the victims.
9 Because Schindler needs 10 re-establish its reputation in the social press before it can expect
good treatment
by the business and political press.
Vocabulary
Understanding expressions:
A
1. found it difficult
2. The Japanese public became very angry.
3. was a big mistake
4. Apologizing is not the same as admitting liability.
5. Schindler's action gave the impression that the company had no sympathy for the death
of the teenager.
6. strong criticism of Schindler
7. One of Schindler's most important mistakes was not to take a decision fast enough.
8. How easy will it be for Schindler to restore its good name?
9. give public examples to show that it is sorry
10. It cost Schindler a lot to learn how to operate in Japan

Word search
B
1. STATE-OF-THE-ART
2. Leading
3. Rebuild its image
4. Malfunction
5. Denies responsibility
6. Legal action
7. Social responsibility
8. Model corporate citizen
9. Reputation
10. Pre-programmed

Unit 7
Reading
A
1. F
2. T
3. T
4. F
5. T
6. T
7. F
8. T
9. T
B
1 To cut costs, increase profits and to benefit from another company’s knowledge and
expertise
2 91 per cent
3 Mergers are not part of normal business; they are done under time pressure
4 A merger between two competitors with strong management teams, different working
practices, different IT systems
5 She says that it is important to set clear targets, to manage a tight process and to take
important decisions quickly. Also, the cultural difficulties should not be underestimated.
6 Small, very quick to take decisions or change direction, not slowed down by strong processes
or long-term planning.
7 Employees’ morale will sink and people will leave the acquired organization.
8 It did not try to change Scitex’s way of working, as it recognized that it worked for Scitex
and they should continue doing what they were good at.
9 Because all employees are expecting and prepared for change, a merger can be an
opportunity to introduce new ways of working that neither set of employees may have
accepted in the past
10 If you want to know if a merger has been successful, you should measure the business value
compared to what would have happened if the merger had not taken place.
Vocabulary
A
1 Expertise
2 Tight
3 Slack
4 Biased
5 Economies of scale
6 Leveraging
7 Aligning
8 To underestimate
9 Agile
10 Alien
11 Morale
12 Hands-off
13 Trickiest
B
1 Cut
2 Increase
3 Fulfil
4 Conduct
5 Set
6 Make
7 Take over
8 Establish
9 Add
10 Do
C
1 A study
2 Decisions
3 Costs
4 Objectives
5 Goodwill
6 Targets
7 A deal
8 Value
9 Profits
10 An organization
D
1 Studies Carried out/conducted
2 Added/improved value
3 Reducing/cutting costs
4. Increase/raise profits
5 Doing/concluding deal
6 Create/establish goodwill
7 Meet/fulfil objectives
8 Set/fix targets
9 take decisions
10 taking over / acquiring an organization
Over to you
1
1b
2c
3a
2
1 Volume extension
A,d,f,g
2 Regional extensions
B,e,h
3. Product extension
c
3
Successes
A
B
C
F
G
Having difficulty
D
Complete failures
E
H
Unit 8
Reading
A
1The German operations of Air liquid and Messer Griesheim, which had been acquired by Air
liquid.
2 They brought in a consulting firm to help them deal with any problems immediately. A lot of
workshops were
organized, at which employees were asked to define new ways of working together.
3 Differences in corporate culture, especially different attitudes to risk.
4 The Dutch
B
1 Industrial gases
2 There were conflicting work styles, national cultural differences and fears about the future,
especially job losses.
3 How to get people working together and at the same time to retain customers and not lose
business.
4 A strong belief by both sides in their own superiority, a fear of job losses at Messer, and
anxiety at Air
liquid that its flexible management style would be deadened by German 'rationality'.
5 Thirty-five employees were appointed 10 raise awareness of these 'viruses', to check if any
'viruses'
appeared and to stop them spreading. They were also used as a discussion point in workshops
attended by
hundreds of employees.
6 The 'mental merger' project
7 For the first six months after the merger
8 Not according to Richard Schoenberg
9 He examined differences in management style in 129 UK acquisitions of continental
European companies in
the 19905. He found that the only significant factor affecting performance was companies'
attitude to risk;
the bigger the difference between the bidder and target in their approach to risk, the less likely
it was that
the acquisition met its goals.
10 They are good at building bridges because they focus on the desired outcome of the merger
rather than
taking sides with different factions.
Vocabulary
A
1b
2a
3a
4b
5b
6a
7a
8a
9b
10 b
B
1 D(V)
2 C(IV)
3 A (II)
4 E (III)
5 B (I)
C
1 Resentment
2 Conflicting
3 Weaken
4 Retain
5 Superiority
6 Flexible
7 Fail
8 Frequently
9 Controversial
D
1 Of working
2 In disrupting
3 Before making
4 At building
5 From spreading
6 Of discussing
Unit 9
Reading
A
1 The merger integration had gone badly, and the cultural differences between the
French and the Americans
had become greater in the two years since the merger.
2 1 Richard Rawlinson 2 John Schwarz 3 Colette Hill
B
1T
2N
3N
4F
5T
6T
7F
8N
9T
10 T
Vocabulary
A
1 Mishandled
2 Heightened
3 Antipathy
4 Head-on
5 Drive
6 Embrace
7 Allies
8 Obstruct
9 Incentive
10 Turnaround
11 Lifeblood
12 Collaborative
13 Articulate
14 Become public knowledge
15 Reputation
16 Stakeholder
B
1
Mishandled integration
Cultural differences
Internal disagreements
Cross-border antipathy
2
Cultural sensitivity
Combine the best of French passion and creativity with American drive and teamwork
To appreciate the other people in the mix
Encourage cross-border, cross-functional teamwork
To embrace, not avoid, the strengths and differences of your global employees
3
Pulling people together behind a common goal will be critical for success
Ensure a collaborative leadership team
Agree the corporate “story” for the company, what it is and where it is going
Articulate this vision to staff
Has agreed the direction of the company
Create a communication plan
Create a common culture
Making workers and the external audience aware of positive changes in the business
C
1
1 CULTURAL ISSUES
2 CULTURAL DIFFERENCES
3 CULTURAL CHANGES
4 CULTURL SENSITIVITY
5 CULTURAL PROBLEMS
2
Cultural diversity, cultural heritage, cultural challenge, cultural misunderstanding
D
1 On
2 From
3 On
4 For
5 Into

CHECK TEST
A
1 values 2 beliefs 3 attitudes 4 barriers 5 dress 6 behavior 7 directive 8 expectations
9 traits 10 harmony 11 abrupt 12 figure out 13 crucial/critical 14 unanimous 15 meticulous
16 misunderstandings 17 cross-border 18 culture clashes 19 competitive advantage 20
economies of scale
B
1b 2e 3a 4b 5d 6a 7e 8d 9b 10 d 11 c 12 b 13 a 14 c 15 d 16 a 17d
18 c 19 b 20 a