When UpJohn Company Merged with Pharamcia AB, Problems Emerged Forcing

question 20

Multiple Choice

When UpJohn Company merged with Pharamcia AB, problems emerged forcing the partners to meet and talk about their cultural differences.This is an example which illustrates that:

• A)Organizational culture clashes often occur when partners do not fully understand the culture of the new partner
• B)Cultural differences are less pronounced among foreign employees working for the same multinational company
• C)Organizational culture tends to moderate or erase the impact of national culture
• D)Companies deliberately maintain distinct business cultures because they do not want one culture influencing the other

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Definitions:

Discount Rate

The interest rate set by central banks that is charged to commercial banks for loans, influencing monetary policy and the money supply.

Severe Recession

An unusually deep and prolonged downturn in economic activity that exceeds the standard definition of a recession, often marked by significant declines in GDP and employment.

Interest Rates

The cost of borrowing money or the return on invested savings, typically expressed as a percentage of the principal amount per year.

Deposit Expansion Multiplier

The ratio of the amount by which deposits can increase to the original amount of new reserves; it shows how money multiplies in the banking system.