Question

Which of the following is NOT an example of a strategy used specifically to minimize the effect of the self-reference criterion?

1) Engaging in foreign exchange restrictions
2) Teaching expatriates to avoid limiting their personal interactions to own-country nationals
3) Selecting appropriate personnel
4) Training expatriates to be sensitive to the local culture

Answer 1

Engaging in foreign exchange restrictions is not a strategy aimed at minimizing the effect of the self-reference criterion; it is a government policy tool related to financial matters, not cultural sensitivity or ethnocentrism.

Step-by-step explanation:

The self-reference criterion (SRC) is a tendency for individuals, often unconsciously, to use their own culture as a standard against which to judge other cultures. In terms of minimizing the effect of the SRC in an international business context, several strategies are employed. These include:

• Teaching expatriates to avoid limiting their personal interactions to own-country nationals, which would encourage greater cultural immersion.
• Selecting appropriate personnel who are likely to be more culturally adaptable.
• Training expatriates to be sensitive to the local culture, which helps in understanding and respecting cultural differences.

However, engaging in foreign exchange restrictions is not a strategy to minimize the effects of SRC; it is a policy tool often used by governments to regulate the country's currency exchange rate and balance of payments. Therefore, the answer to the student's question is:

Engaging in foreign exchange restrictions is NOT an example of a strategy used specifically to minimize the effect of the self-reference criterion.