MNC SCENARIO: Mr

question 12

Multiple Choice

MNC SCENARIO: Mr. Adam Smith works as a senior executive for Corebiz Corp., a multinational company with subsidiaries in many Asian countries. The firm believes in a marketing strategy that strongly resonates the essence of the local culture in its implementation. The company relocates Mr. Smith to Beijing to handle their operations in China. A few months into his stay, Mr. Smith begins to learn the ways of life and appropriate behavior in China. When Mr. Smith was invited for tea by his colleagues, he observed people around him and learned the right way to tap his finger and fold a napkin. He also learned that the Chinese revere their elders and treat them with respect. Even when there is no kinship involved, an older person should never be addressed with his/her name. Any show of disrespect, especially “name calling,” is shunned upon by society; and the person found doing so, risks being ridiculed by everyone. Though these learnings can sometimes be inconvenient for Mr. Smith owing to the vast cultural difference between the United States and China, Mr. Smith thinks that it is worth all the trouble.
-Refer to MNC Scenario.A few months into his stay,Mr.Smith begins to learn the ways of life and appropriate behavior in China.This learning is referred to as _____.

• A) acculturation
• B) enculturation
• C) adaptation
• D) acclimatization
• E) externalization

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Definitions:

Real Income

The income of an individual or group after adjusting for inflation, reflecting the actual purchasing power of the income.

Total Utility

The total satisfaction a consumer receives from consuming a particular quantity of a good or service.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase with a given budget at specific prices.

Purchase More

The action of buying an increased quantity of goods or services than previously acquired.