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Cross-border transactions are often perceived by the general public as national threats instead of rational business deals. We propose two interpretational mindsets that attenuate (transactional mindset) and agitate (categorization mindset) these culturally motivated responses. Three studies were conducted in Singapore and the United States with various cross-border acquisition scenarios. As predicted, transactional mindset, which centers around cost–benefit calculations, nudged participants to evaluate the foreign acquisition more rationally and evoked fewer social–cultural considerations than categorization mindset, which focuses on categorizing and comparison procedures, and when no mindset was primed. Furthermore, the effects of categorization mindset are particularly strong when one perceives the two transacting parties as dissimilar and when he/she identifies closely with the local culture. We conclude that while economic activities such as cross-border acquisitions can inadvertently evoke nationalistic reactions, it is possible to mitigate them or even encourage rational evaluations by influencing people's interpretational mindset.

Based on the stereotype content model, we examined Mainland and Hong Kong Chinese' historical representations and future imaginations of China during the 2008 Beijing Olympics. Among Mainland Chinese, China's unprecedented economic growth and the resulted value competition led to the expectation of a more competent China in the future (vs now; a ‘better tomorrow effect’) and a perception of a warmer and more moral China in the past (vs now; the ‘good old days effect’). As the Olympics proceeded, the perceived compatibility of competence and warmth/morality increased and the good old days effect diminished. Hong Kong Chinese, who also witnessed China's growth but did not directly experience the cultural implications of globalization in Mainland China, displayed the better tomorrow effect only.

The purpose of the comprehensive model presented here is to explain the underlying mechanism by which corporations can repair customer trust after negative publicity. The study sets out to examine corporate informational, affective, and functional initiatives managers take to influence three trustworthiness factors—competence, benevolence, and integrity—and to elicit forgiveness. A scenario-based experiment conducted to test the conceptual model found support for most hypotheses. According to the results, rebuilding a trustworthy image and earning consumer forgiveness are crucial steps in repairing consumer trust. A clear pattern of influential factors for different trustworthiness aspects was found, indicating that affective initiatives are the most effective strategy in shaping a corporate image of integrity and benevolence, and that providing sufficient information is a key activity for enhancing consumers' judgment about the firm's competence. © 2009 Wiley Periodicals, Inc.