What is meant by cultural distance? How does it affect a firm? Use a real-life example of a business affected by cultural difference. The example can be from your everyday life, or it can be something you have read or heard about
What will be an ideal response?
Student examples will vary. A sample answer follows.
Cultural distance is the cultural disparity between the internationally expanding firm's home country and its targeted host country. A firm's decision to enter certain international markets is influenced by cultural differences. A greater cultural distance can increase the cost and uncertainty of conducting business abroad. In short, greater cultural distance increases the liability of foreignness.
One firm that is effected is McDonald's, which does not sell its signature beef hamburgers in India because many Indians are vegetarians for religious reasons.
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On January 1, 2013, Petersen Corp sold a piece of equipment for $3,000 which it had used for several years. The equipment had cost $13,000, and its accumulated depreciation amounted to $9,000 at the time of the sale. What are the net effects on the accounting equation of selling the equipment?
a. Assets and Stockholders' Equity increase $1,000. b. Assets decrease and Stockholders' Equity increases $3,000. c. Assets and Stockholders' Equity decrease $1,000. d. Assets and Stockholders' Equity decrease $3,000.
______ occurs when some members of a team work less diligently or pursue team goals with less effort because they realize that there are others on the team who will pick up the slack.
a. Groupthink b. Social loafing c. Nonconformity d. Virtual miscommunication
In highly cohesive teams, when members try to maintain harmony by striving toward consensus on issues without ever offering, seeking, or seriously considering alternative viewpoints and perspectives, this is
A. group cohesion. B. interdependence. C. groupthink. D. cognitive dissonance. E. centralization.
Companies that find violations must self-report them to the EPA within 30 days in order to enjoy favorable treatment for voluntary disclosures
Indicate whether the statement is true or false