International Business - Chapter 4
Which statement BEST reflects the implications of cultural differences for business?
A company may need to vary management processes by country as a result of local cultural differences.
The majority of Christians live in Europe and the Americas. However, Christianity is rapidly growing in ______.
Africa
Country A has a free market economy and a group-oriented social structure. Country B has all of the same traits, but also possesses an advanced education system. Which country would be more attractive as an investment opportunity?
B
The religion where followers try to achieve nirvana or spiritual enlightenment is _____.
Buddhism
In terms of numbers of members, what are the four major religions that dominate the world today?
Buddhism Hinduism Islam Christianity
Which of these religions currently has the largest number of adherents?
Christianity
What characterizes a typical business based in Japan?
Companies develop long-term relationships with suppliers.
Hofstede's fifth dimension was inspired by _____.
Confucianism
What ethical system was the official ethical system of China until the communist revolution and emphasizes taking the right actions to attain salvation?
Confucianism
Which ethical system is NOT concerned with the afterlife?
Confucianism
Which ideology has, as one of its key beliefs, that honesty has major economic implications?
Confucianism
Loyalty, honesty in dealing with others, and reciprocal obligations are the building blocks of
Confuciansim
What are three examples of the "hidden curriculum" of schools?
Dealing with competition Respect for others Obedience to authority
What are three of the determinants of culture?
Economic philosophy Social structure Political philosophy
Which language is most prominent in terms of international business?
English
______ is judging another's culture solely by the values and standards of one's own culture.
Ethnocentrism
Hofstede's work confirmed Western stereotypes, but it has been criticized for this result because the research team was composed of
Europeans and Americans.
True or false: One positive aspect of high managerial mobility is that executives have a sense of loyalty and commitment to an individual company.
False
The ______ instrument would define leadership as the ability to influence, motivate and enable others to contribute to the organization.
GLOBE
The Orthodox Church is especially prevalent in _____.
Greece
What are three tenets associated with Confucianism?
High ethical conduct High moral conduct Loyalty to others
The religion where followers believe in reincarnation and karma is
Hinduism
Which statement BEST explains how Max Weber compares Hindus to Protestants?
Hindus would be less likely to engage in entrepreneurial activity.
The work of _____ is the main research used to understand the impact of culture on multinational corporations.
Hofstede
Which two phrases reflect the economic implications of Islam?
Hold property as trustees, rather than as owners (per Western definition of ownership) Cannot earn profit through exploitation of others
What three characteristics are emphasized by the Japanese culture and boost the competitiveness of Japanese companies?
Honesty Loyalty Education
What are the three values central to the Confucian system of ethics that may have led to economic success in some Asian countries?
Honesty in dealing with others Reciprocal obligations Loyalty
What are two criticisms of Hostede's work?
Hostede assumed a one-to-one correspondence between culture and nation. Hofstede's research was culturally bound.
How has social media affected group life?
It has emphasized the idea of an extended social group.
What are three principles of social stratification?
It involves beliefs as well as inequality. It is generally universal. It carries over to the next generation.
As the result of criticism of his original work, Hofstede went on to expand his model with the addition of which dimension?
Long-term vs short-term orientation
As the guiding principle of Islam, the ______ actually promotes free enterprise and supports earning legitimate profits through commercial efforts.
Koran
What is a negative effect of the collectivist manner associated with Japanese businesses?
Lack of dynamism and entrepreneurship
What is used to direct the attention of a society to specific components of the world and structures how people perceive them?
Language
Which of these business situations exemplifies the convergence hypothesis?
McDonald's, Burger King and other fast food restaurants are found in many nations.
Islam is a ______ religion, believing in one true God.
Monotheistic
Adherents of Islam are called
Muslims
What are the four dimensions originally identified by Hofstede?
Power distance Individualism vs collectivism Uncertainty avoidance Masculinity vs femininity
According to Weber, thrift, efficiency and hard work are the result of a person's belief in the ethics of _____.
Protestantism
______ is considered the religion that emphasizes individual economic and political freedoms which formed the basis on which entrepreneurial free market capitalism is based.
Protestantism
A schism from the Roman Catholic Church in the sixteenth century led to the establishment of
Protestantism.
______ is/are something that one believes in that is concerned with the sacred and follows with some measure of devotion.
Religion
The World Values Survey includes what three dimensions?
Support for democracy Impact of globalization Support for gender equality
How would sociologists describe the class system in British society today?
The class system still exists and "money still begets money"
There is a connection between culture and competitive advantage. What are two reasons why this connection is important?
The connection suggests which countries might produce the most viable competitors. This connection can affect the choice of countries to do business in and locate production facilities in.
As modernization occurs, what situation is contrary to the Buddha's teaching?
There is more separation between people and nature.
What are three rituals associated with orthodox Muslims? (Check all that apply.)
There is a daily prayer ritual. Muslims are forbidden to consume alcohol. Muslims are forbidden to consume pork.
Which three situations are considered positive aspects of the collectivist attitude found in the Japanese business culture? (Check all that apply.)
There is strong incentive for individuals to work together for the common good. Cooperation within the group is driven by the need to improve group performance. Workers tend to remain at the same company for a long time -- even a lifetime.
True or False: While religion can influence the values and norms of society, the values and norms of society can also impact religion.
True
True or false: A sociologist would disagree with the idea that the British class system has dissolved.
True
True or false: Education provides a competitive economic advantage through the creation of a pool of skilled and educated workers.
True
True or false: Historically, the British class system prevented people from moving up in society.
True
True or false: It is possible for one country to encompass several societies. True false question.
True
True or false: Spoken language not only allows people to communicate with each other, but structures the way people perceive the world.
True
What are three benefits of learning the native language of a company you are doing business with?
You can build rapport more easily. People like to speak in their own language. Businesses may prevent major blunders through improper translation.
What is one negative aspect to companies of emphasizing individual performance in business?
a high degree of managerial mobility between companies
Kluckhohn and Strodtbeck's theory of culture states that all definitions of culture must
answer a limited number of universal problems.
As countries get richer, we often see a shift ______ traditional values (such as staying married and obeying one's parents) and ______ secular rational values (including abortion and divorce).
away from; toward
In Japanese society today, it is common for a person's social status to be associated with his or her
business
Max Weber attributed the relationship between the emergence of ______ and Protestantism to the value system of the religion.
capitalism
The most rigid form of social stratification is the _____ system.
caste
The economic principles of Islam prohibit a bank from _____.
charging interest
The ___ system is a less rigid form of social stratification than the caste system.
class
In the past, there has been a mutual lack of respect between upper management and working-class employees at British companies. This lack of respect was the result of the perception that those in upper management were a "step above" the employees. This perception was a reflection of _____.
class consciousness
Class ______ is an awareness of one's social or economic rank in society.
consciousness
The best way to describe the labor-management relationship in an organization based in Confucian culture is
cooperation is achieved at a lower cost.
Understanding how cultural differences across and within nations affect the way business is practiced is known as ______ literacy.
cross-cultural
Energy Resources Ltd. does business in 50 countries around the world. The company stresses to all employees the importance of understanding the prevailing culture in the countries that they are doing business in. In other words, the company is aware of the importance of
cross-cultural literacy.
The system of values and norms that are shared among a group of people and when considered as a whole represent a design for living is called
culture
Hindus believe in ______, the behaviors and responsibilities governing individual conduct.
dharma
Culture can best be described as a ______ phenomenon.
dynamic
The US economy is considered _____ because it is impacted by the philosophy of individualism.
dynamic
Compared to China and the United Kingdom, social mobility is _____ in the United States.
easier
One way a company can become more informed about the practices of an international affiliate is to
employ local citizens to help them do business in a particular culture.
The fact that the caste system has NOT held back the _____ in India demonstrates how culture should not be overemphasized when discussing the economic sphere.
entrepreneurial activity
A focus on individual religious freedom, not surprisingly, may have set the stage for
entrepreneurship.
The set of moral principles that are used to guide and shape behavior are called _____.
ethics
The orthodox Muslim is required to pray ___ times a day
five
In the United States, the majority of people are very aware of what time it is, what they need to accomplish in that time, and when they are out of time. This attitude toward time is an example of a _____.
folkway
Monica asked her manager if appropriate dress for the meeting was business casual or traditional business. Monica is inquiring about the ______ associated with the meeting.
folkway
At a dinner meeting in Japan, two executives sat down, leaving the middle seat open for their third associate, even though it meant one of them would have to get up to let him in. This is because, in Japan, the middle seat is reserved for the most senior member of the group. This is an example of a
folkway.
The rituals associated with a culture, such as bowing to show respect in Japan, are forms of _____.
folkways
The routine conventions of living, thinking and acting in a group are called ______.
folkways
enna expects the people she works with to be prompt. Recently, she became very frustrated when a foreign executive was late to their meeting because he felt it was more important to finish a phone conversation. People's attitude toward time is an example of how _____ can affect business.
folkways
Stephen usually eats lunch with three of his co-workers and on the weekends he gets together with his college friends. The people Stephen interacts with represent two types of _____.
groups
According to Hofstede, societies with stiff codes of behavior, rules, and laws score _____ on the uncertainty avoidance index.
high
The _____ degree of social mobility in the US limits the impact of class background on business operations.
high
An advantage of individualism is a(n)
high level of entrepreneurial activity.
Islamic fundamentalists are usually _____ toward Western-based businesses.
hostile
In a Confucian society, expensive lawyers would not be needed to resolve contract disputes because
importance is attached to honesty.
In the United States, class membership is determined to a greater degree by _____.
individual economic achievement
In most Western societies the ______ is emphasized, whereas in Japan the _____ is more important.
individual; group
Western society values _______ over ______.
individuals; groups
Under Hofstede's proposed sixth dimension, _____ refers to a society that promotes enjoying life and having fun.
indulgence
One reason for the rise of Islamic fundamentalism is the
influence of Western ideas and culture.
A caste system is a type of social structure that divides people on the basis of _____.
inherited social status
There _____ a strict one-to-one relationship between one culture and a nation-state.
is not
Alex considers himself a "true French Canadian" and agrees with political activists who think there should be a separation from English speaking citizens who are dominating certain provinces. What seems to be the cause of this division in Canada?
language
Kate's grandmother was born in Belgium and she says she is Flemish. Anne's grandmother was also born in Belgium and she says she is French. In some areas of Belgium, all signs are in French and are not possible to read unless you know the French language. The same is true for other areas with all signs in Flemish. What is creating the divide between these two cultures?
language
Though culture is important, it is probably less significant in explaining different economic growth between nations than what three other factors?
legal systems economic systems political systems
In Japan, most people perceive themselves to be middle class; therefore, class background has ______ impact on business operations.
less
Confucianism values harmonious relationships, which are based on moral and ethical conduct and ______.
loyalty to others
In an organization operating in a Confucian culture, it would be the sacred duty of an employee to be loyal to his or her
manager.
Social _____ refers to how difficult or easy it is for an individual to move out of the social strata into which they are born.
mobility
Norms that are more widely observed within a society and have greater moral significance than folkways are called _____.
mores
Social norms that address the customs and conventions of a society and are central to the functioning of the society are called _____.
mores
Hindus believe that ______ is achieved by spiritual progress and reincarnation.
movement between castes
______ join the political entity of a state to the cultural entity of a nation. Multiple choice question.
nation-states
In post-independence India, some think that the values of Hindu asceticism and self-reliance have had a(n) ______ impact on economic development.
negative
Unspoken language is another way to describe ______ communication.
nonverbal
Even though Parul disagreed with her co-worker, she waited until he was done speaking before she responded because she knew it wasn't polite to interrupt someone while they were talking. The social rule Parul followed is an example of a(n) _____.
norm
Camille knows it would be inappropriate of her to ask the new client if she planned to invest in shares of company stock. Social rules that dictate appropriate behaviors are called _____.
norms
______ supply the standards and models for acceptable behavior in a society.
norms
In the ______ dimension identified by Hofstede, the degree of power and wealth is not balanced within a country.
power distance
When an Islamic bank implements a mudarabah contract, it is similar to a _____ that might take place in the United States.
profit-sharing scheme
In Confucian culture, while employees are expected to be loyal to their superiors in business, those superiors must reward this loyalty by bestowing blessings on the employees.This demonstrates the idea of ______ obligations.
reciprocal
Guanxiwang refers to _____, which hold networks together.
relationships
slam prohibits payment of interest. This is one example which shows how ______ can be the root of an ethical system.
religion
The set of shared beliefs followed by Catholics and those of the Jewish faith represent their individual _____.
religions
Historically, one way in which a British citizen could ensure that his or her children were accepted into a higher class was to
send them to the "right" school.
A mudarabah contract allows an Islamic bank to _____ in exchange for a loan.
share in company profits
Nigel was born into a poor, working-class family in England. He is resigned to the fact that his life will be much like his fathers as he has no way to earn a degree and change his status. Nigel believes that a lack of _____ determines his fate.
social mobility
A class system is characterized by the fact that a person can move from one ______ to another.
social strata
A(n) ______ is a group of people who share a common set of values and norms.
society
Traditional Hindu values judge individuals by their ______, according to Max Weber.
spiritual actions
What are two examples of nonverbal communication?
standing an appropriate distance from a colleague during a conversation giving a thumbs up sign to indicate you agree with a statement
All societies are divided on a hierarchical basis into social categories called social _____.
strata
The basic social organization of a society is called its social _____.
structure
Buddhism has all the same basic beliefs as Hinduism except for which two of the following?
support for the caste system. advocacy in extreme ascetic behavior.
The two major Christian organizations are
the Roman Catholic Church. the Orthodox Church.
The vast majority of Muslims would agree that Islam teaches _____.
tolerance for others
n Westernized societies, freedom to choose is considered everyone's right. The idea of what is good and right is an example of a(n) _____.
value
Assumptions about how things should be that a group shares are called _____.
values
Freedom, democracy, and justice are three examples of _____ within a society.
values
In some nations, war has resulted when members of society feel their freedoms are being discounted. In other words, people are willing to fight for their _____.
values
For poor Muslims, modern ideology has not offered substantial economic improvement, yet it threatens their traditional
values.
The media relates Islamic fundamentalists with ______, rather than with deeply held religious values.
violence
Based on Islamic principles, businesses that attempt to exploit others in order to earn a profit in a Muslim country ______ be welcomed to do business.
would not