Portfolio investment is the purchase of physical assets of a ...

[arivle123]

Portfolio investment is the purchase of physical assets of a company in another country to gain a degree of management control.
 
  Indicate whether the statement is true or false

Question 2

In a short essay, describe three guidelines that managers should follow to achieve cross-cultural success.
 
  What will be an ideal response?

[chereeb]

Answer to Question 1

FALSE

Answer to Question 2

GUIDELINE 1: Acquire factual knowledge about the other culture, and try to speak the language. Successful managers acquire a base of knowledge about the values, attitudes, and lifestyles of the cultures that they encounter. Managers study the political and economic background of target countries-their history, current national affairs, and perceptions about other cultures. Such knowledge increases understanding about the partner's mindset, organization, and objectives. Sincere interest in the target culture helps establish trust and respect. It helps lay the foundation for open and productive relationships. Even modest attempts to speak the local language are welcome. Superior language skills help ensure international business success. In the long run, managers who can converse in multiple languages are more likely to negotiate successfully and have positive business meetings.
GUIDELINE 2: Avoid cultural bias. Problems arise when managers simply assume that foreigners think and behave just like the folks back home. Such ethnocentric assumptions lead to poor business strategies in both planning and execution. Managers new to international business can find the behavior of a foreigner odd and perhaps improper. For example, it is easy to be offended when a foreigner does not appreciate our food, history, entertainment, or everyday traditions. In this way, cultural bias can be a significant barrier to successful interpersonal communication. Ethnocentric assumptions lead to poor business strategies in both planning and execution. Managers new to international business often find the behavior of a foreigner hard to explain. For example, it is easy to be offended when our foreign counterpart does not appreciate our food, history, sports, or entertainment or is otherwise inconsiderate. This situation may interfere with the manager's ability to interact effectively with the foreigner, even leading to communication breakdown. In this way, culture can be a significant barrier to successful cross-cultural communication.
GUIDELINE 3: Develop cross-cultural skills. Working effectively with counterparts from other cultures requires managers to make an investment in their professional development. Each culture has its own ways of conducting business and negotiations, and solving disputes. Managers are exposed to high levels of uncertainty. Concepts and relationships can be understood in a variety of ways. To be successful in international business, managers should strive for cross-cultural proficiency.