Portfolio Question Essay Example

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Question 1. Relative use of Nonverbal Behaviors

According to Deresky, (2014), nonverbal communication is a kind of communication where information can be send and received by the use of gestures between the people communicating. Nonverbal behavior is influenced extremely by culture as with the verbal communication. Research shows that Lithuanian Jewish and Sicilian immigrants in the United States had very unique ways of communicating using gestures. The meaning of a certain facial gazing in American culture could be seen as an obscene gesture in many of European cultures. In certain cultures the act of one placing his/her hands at the side of the head indicates one is angry. Gaze as shown by the research carried out on non-human primates and humans is linked to dominance, aggression or power and nurturance and affiliation. As seen in documented cross cultural research, Arabs have the ability to gaze more direct and much longer at their partners as compared to Americans. Prolonged eye contact to Arabs shows interest and assists them in finding the truth in other people. Americans believe that prolonged eye contact shows a high degree of interest or attention, defines status and power, and regulates interaction. Latin American, Caribbean, Japanese, and African avoid eye contact to indicate respect. When interacting, people of certain cultures do participate in direct orientation and more gazing, more touching and less inter-personal distance (Deresky, 2014). Asian traditions do not allow touching of strangers. It is what their culture states but this could be seen as rudeness and discrimination in other parts of the world.

Question 2. Differences in Risk Tolerance

Risk tolerance is the degree of how far one can go in accepting higher volatility or risk in expectation of higher returns (Holt, 2002). Aggressive investors are those with very high risk tolerance; to them fetching higher returns is important than losing the capital at hand. Research shows that risk tolerance differences is mainly based on age, gender, wealth and income. Gender plays a major role in risk tolerance. It has been seen that women are more risk averse as compared to men and they have a distinct way of making decisions. Men as compared to women make choices which are more risky and their choices are more in their concern than in the firm’s interest. Age also plays a major role in risk tolerance; elderly people have been seen to be less risk takers than young people. Wealth and income are also some of the factors that have similar effect in risk tolerance; when wealth and income increase there is a higher tendency that risk tolerance will go up. According to Holt (2002) risk propensity plays a major role in helping the investors make the right choices.

Question 3. Negotiations with Germans

According to Hodgetts and Luthans, (2003), Germans act or work in a very organized way especially when they are involved in an official negotiation. In a formal negotiation which might involve crucial matters such business arrangements, a new contract, Germans tend to handle it in a more serious manner and they do not expect any kind of jokes in the middle of the formal conversation. For the Germans, the only way to avoid making mistakes and misunderstanding, is to go over the details of the matter several times. Research shows that Germans do not rush when discussing a crucial matter. Germans like to stress decorum by making use of surnames and in other cases they prefer academic tittles (Hodgetts and Luthans, 2003). They do not give room to humor or jokes in business discussion. The best way to handle such a situation is to avoid jokes when discussing serious matters.


Deresky, H. 2014. International Management: Managing Across Borders and Cultures. 8th ed. Essex: Pearson.

Hodgetts, R., and F. Luthans. 2003. International Management: Culture, Strategy and Behaviour. 5th ed. Boston: IrwinMcGraw-Hill Inc.

Holt, D. H., and K. W. Wigginton. 2002. International Management. 2nd ed. Fort Worth: Harcourt College

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