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Chapter 4 Differences in Culture TRUE/FALSE 1) In today's world of global communications, rapid transportation, and global markets, cultural differences have ceased to exist. FALSE 2) Norms are abstract ideas about what a group believes to be good, right, and desirable. FALSE 3) Folkways include rituals and symbolic behavior. TRUE 4) Upon meeting a foreign business executive, a Japanese executive will hold his business card in both hands and bow while presenting the card to the foreigner. This is an example of ritual behavior. TRUE 5) The term social strata refers to the extent to which individuals can move out of the strata into which they were born. FALSE 6) Education plays an important role, from an international business perspective, as a determinant of national competitive advantage. TRUE 7) Both Hindus and Buddhists stress the afterlife and spiritual achievement rather than involvement in this world. TRUE 8) Islam is a polytheistic religion, like Christianity and Judaism. FALSE 9) A caste system is a closed system of stratification in which social position is determined by the family into which the person is born. TRUE 10) A class system is a rigid form of social stratification in which the position a person has by birth cannot be changed through his or her own achievements or luck. FALSE 11) An antagonistic relationship between management and labor classes may result in lower costs of production. FALSE 12) Max Weber believed that Protestantism encouraged capitalism's development by emphasizing the importance of wealth creation and frugality. TRUE 13) Individualism has led to a high degree of managerial mobility between companies resulting in managers who have good general skills but lack company-specific experience. TRUE 14) In countries where the value of group identification is considered to be primary, managers and workers are discouraged from moving from company to company. TRUE 15) The mudarabah contract is the most widely used Islamic banking method, because it is the easiest to implement. FALSE 16) Max Weber believed that devout Hindus would be less likely to engage in entrepreneurial activity than devout Protestants. TRUE 17) Guanxi is an important mechanism for building long-term business relationships and getting business done in China. TRUE 18) Hofstede's study found that in masculine cultures, sex roles were less sharply distinguished, and little differentiation was made between men and women in the same job. FALSE 19) Hofstede's research has been criticized because it was culturally bound. TRUE 20) Hofstede's concept of power distance focused on the extent to which different cultures socialized their members into tolerating uncertainty. FALSE 21) According to Hofstede, the concept of Confucian dynamism captures attitudes toward time, persistence, protection of face, and respect for tradition. TRUE 22) The convergence hypothesis states that there is a slow but steady merging occurring across different cultures toward some universally accepted values and norms. TRUE 23) International businesses that are ill-informed about the practices of another culture are likely to fail. TRUE 24) The value systems and norms of a country are unrelated to the costs of doing business in that country. FALSE 25) Because of its individualistic mind-set, Japanese culture is more supportive of entrepreneurial activities than American culture. FALSE MULTIPLE CHOICES 26) Culture is A) static. B) not static. C) unchanging. D) abstract. 27) The term ________ refers to a group of people sharing a common set of values and norms. A) mores B) society C) culture D) folkway 28) Cross-cultural literacy refers to A) an individual's self-concept derived from perceived membership in a relevant social group. B) the phenomenon of merging and converging cultures. C) abstract ideas about what a group believes to be good, right, and desirable. D) an understanding of how cultural differences can affect business. 29) ________ include such factors as indictments against theft, adultery, incest, and cannibalism. A) Norms B) Folkways C) Mores D) Values 30) ________ is/are best defined as shared assumptions about how things ought to be. A) Norms B) Values C) Society D) Culture

31) The system of values and norms that are shared among a group of people and that when taken together constitute a design for living best defines A) society. B) value systems. C) principles. D) culture. 32) Social rules and guidelines that prescribe appropriate behavior in particular situations are best described as A) norms. B) values. C) culture. D) society. 33) People who share a common set of values and norms form a A) culture. B) society. C) country. D) caste. 34) Even if a ________ can be characterized as having a single homogeneous culture, often that national culture is a mosaic of subcultures. A) culture. B) country. C) society. D) norm. 35) ________ are the routine conventions of everyday life. A) Folkways B) Mores C) Rites D) Beliefs 36) When Jana visits her mother, she takes great pains to watch her language and use good manners because that is what her mother expects of her. This demonstrates the concept of A) folkways. B) mores. C) rites. D) beliefs. 37) The term ________ also means culture. A) folkway B) society C) country D) norm 38) ________ are social conventions concerning things such as the appropriate dress code a particular situation, good social manners, eating with the correct utensils, neighborly behavior, and the like. A) Values B) Beliefs C) Mores D) Folkways 39) An act as simple as shaking hands when meeting new people is an example of A) values. B) symbolic behavior. C) mores. D) social stratification. 40) A Japanese executive's ritual of presenting a business card to a foreign business executive is an example of A) mores. B) a values. C) an attitudes. D) a folkways. 41) Mores are A) the norms that are seen as central to the functioning of a society and its social life. B) the routine conventions of everyday life. C) abstract ideas about what a group believes to be right, good, and desirable. D) the social rules and guidelines that prescribe appropriate behavior in particular situation 42) Brad has been in trouble his whole life. He stole from the local hardware store when he was 12, and as an adult he didn't feel the need to be faithful to his wife. Brad is guilty of violating A) mores. B) folkways. C) ethics. D) values. 43) ________ are typically defined on the basis of characteristics such as family background, occupation, and income. A) Social strata B) Norms C) Social structure D) Groups 44) A major difference between Buddhism and Hinduism is that unlike Hinduism, Buddhis A) does not support the caste system. B) emphasizes wealth creation. C) promotes blind loyalty to employers. D) supports extreme ascetic behavior. 45) A ________ is an association of two or more individuals who have a shared sense of identity and who interact with each other in structured ways on the basis of a common set o expectations about each other's behavior. A) society B) collective C) social strata D) group 46) A society's social structure refers to its

A) system of values and norms. B) basic social organization. C) religious practices. D) educational infrastructure. 47) The social organization of Western society tends to emphasize on A) a group orientation. B) collectivist values. C) individual achievement. D) work groups. 48) Which of the following refers to the extent to which individuals can move out of the strata into which they are born? A) caste stratification B) class system C) social mobility D) individual potential 49) Hindus believe A) that there is but the one true omnipotent God. B) in reincarnation, or rebirth into a different body, after death. C) in the importance of individual religious freedom. D) that a material quest is more important than a spiritual quest. 50) Which of the following is a closed system of stratification in which social position is determined by the family into which a person is born, and change in that position is usually not possible during an individual's lifetime? A) caste system B) class system C) social system D) cultural system 51) A ________ is a less rigid form of social stratification in which social mobility is possible. A) caste system B) normative system C) religious system D) class system 52) Which of the following statements is true about a class system? A) A class system is a more rigid form of social stratification, compared to a caste system. B) A class system is a closed form of stratification. C) Social mobility within a class system varies from society to society. D) In a class system, social position is determined at birth and cannot be changed during an individual's lifetime. 53) According to ________, suffering originates in people's desires for pleasure. A) Hinduism B) Protestantism C) Buddhism D) Judaism 54) A caste system differs from a class system because A) a caste system is an open system of stratification, while a class system is a closed system of stratification. B) it is not possible for an individual to change his or her caste, while a class system allows people to change their class through individual achievement. C) the social mobility in caste systems varies from society to society, while in a class system there is no social mobility. D) a caste system is a less rigid form of social stratification, while a class system is a comparatively more rigid form of social stratification. 55) Ethical systems are A) a set of moral principles, or values, that are used to guide and shape behavior. B) shared beliefs and rituals that are concerned with the realm of the sacred. C) routine conventions of everyday life. D) social rules that govern people's actions toward each other. 56) Religion may be defined as A) routine conventions of everyday life. B) social rules that govern people's actions toward each other. C) shared beliefs and rituals that are concerned with the realm of the sacred. D) a set of moral principles, or values, that are used to guide and shape behavior. 57) Hinduism and Buddhism both stress the importance of A) the caste system. B) the afterlife. C) Confucian ethics. D) life on earth. 58) Max Weber theorized that there was a relationship between Protestantism and the emergence of modern capitalism because A) Protestant ethics emphasize the importance of hard work and wealth creation and frugality. B) Protestantism promotes the hierarchical domination of religious and social life. C) Protestantism states that spiritual growth is more important than material wealth. D) Protestantism promotes blind loyalty to employers. 59) The concept of mobility between castes within an individual's lifetime A) is an opportunity to adopt positions of responsibility and influence in society. B) makes no sense to traditional Hindus. C) shows a figurative "reincarnation" of a person. D) is a sign of spiritual progression to traditional Hindus. 60) Max Weber was a German sociologist who, in 1904, made the connection between ________ and "the spirit of capitalism." A) Protestant ethics B) ethnocentrism C) cross-cultural literacy D) collectivism

A) The nature of a language has no effect on the way we perceive the world. B) The language of a society does not direct the attention of its members to certain features of the world rather than others. C) Countries with more than one language often only have one culture. D) Most people prefer to converse in their own language rather than English. 62) A condition where people tend to perceive themselves in terms of their class backgroun and this shapes their relationships with members of other classes is known as A) class stratification. B) social mobility. C) class mobility. D) class consciousness. 63) An upper-middle-class manager tends to have hostile relationships with the workingclass employees in the firm because of his tendency to perceive himself as superior to them based on his class background. In this example, the manager exhibits A) class consciousness. B) cultural awareness. C) social mobility. D) group orientation. 64) There are three values central to the Confucian system of ethics that have very important economic implications. Which of the following is one of these values? A) filial piety B) rule-based law C) humaneness D) honesty in dealings with others 65) Which of the following sociologists made a connection between Protestant ethics and "the spirit of capitalism"? A) Karl Marx B) Max Weber C) Amartya Sen D) Adam Smith 66) According to Islam, those who hold property are regarded as A) trustees. B) owners. C) tenants. D) speculators. 67) The emphasis on individualism in the United States results in which of the following advantages? A) Managers tend to develop good general skills as well as company-specific experience. B) Teams are built within an organization to perform collective tasks. C) Executives are exposed to different ways of doing business. D) It is easy to achieve cooperation—both within a company and between companies. 68) Which of the following observations is correct? A) The economic principles established in the Koran are against free enterprise. B) The economic principles of Islam prohibit the payment or receipt of interest. C) The Koran speaks disapprovingly of earning legitimate profit through trade and commerce. D) Protection of the right to private property is not acceptable within Islam. 69) Under the mudarabah banking system, when an Islamic bank lends money to a busines A) it charges that business interest on the loan. B) the business needs to pay back the loan with an additional markup. C) it has to donate the interest received on the loan to a charitable trust. D) it takes a share in the profits that are derived from the investment. 70) Which of the following statements is true about the murabaha contract? A) Under the murabaha contract, when an Islamic bank lends money to a business it takes share in the profits that are derived from the investment. B) Under the murabaha contract, money deposited in a savings account is treated as an equity investment in whatever activity the bank uses the capital for. C) The murabaha contract is widely used among the world's Islamic banks because it is the easiest to implement. D) The murabaha contract is a more efficient system than the Western banking system sinc it encourages both long-term savings and long-term investment. 71) In countries where the value of ________ identification is considered to be primary, managers and workers are discouraged from moving from company to company. A) individual B) group C) cultural D) primary 72) The ________ dimension of Hofstede's study explores how a society deals with the fa that people are unequal in physical and intellectual capabilities. A) power distance B) individualism versus collectivism C) uncertainty avoidance D) masculinity versus femininity 73) Martin worried a lot about his job, which he chose specifically because it was very structured with clear rules and regulations. He carefully planned his career to maximize job security and retirement benefits. Martin would rate high on which of Hofstede's four dimensions? A) power distance B) individualism versus collectivism C) uncertainty avoidance D) masculinity versus femininity

A) the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty. B) the relationship between gender and work roles. C) how a society deals with the fact that people are unequal in physical and intellectual capabilities. D) the relationship between the individual and his or her fellows. 75) Hofstede's uncertainty avoidance dimension considered A) the extent to which different cultures socialized their members into accepting ambiguous situations and tolerating uncertainty. B) the relationship between gender and work roles. C) how a society deals with the fact that people are unequal in physical and intellectual capabilities. D) the relationship between the individual and his or her fellows. 76) The ________ is a research project spanning more than 100 countries that explores people's values and norms, how they change over time, and what impact they have in society and business. A) World Values Survey B) Global Leadership and Organization Behavior Effectiveness Instrument C) Indulgence Versus Restraints Survey D) Chinese Value Survey 77) According to Geert Hofstede's study, which of the following cultural dimensions would be characterized by a greater readiness to take risks and less emotional resistance to change? A) high power distance cultures B) low uncertainty avoidance C) high collectivism D) low power distance cultures 78) The ________ instrument is designed to address the notion that a leader's effectiveness is contextual. It is embedded in the societal and organizational norms, values, and beliefs of the people being led. A) GLOBE B) WVS C) IND D) CVS 79) The ________ refers to the extent to which a culture programs its citizens to accept delayed gratification of their material, social, and emotional needs. A) long-term versus short-term orientation dimension B) indulgence versus restraint dimension C) uncertainty avoidance D) power distance dimension 80) ________ refers to a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun. A) Persistence B) Indulgence C) Reciprocation D) Restraint 81) Hofstede's ________ dimension measured the extent to which different cultures socialized their members into accepting and tolerating ambiguity. A) power distance B) long-term versus short-term orientation C) uncertainty avoidance D) indulgence versus restraint 82) Hofstede's results, as might be expected, showed that nations such as ________ scored low on long-term orientation. A) the United States and Canada B) Denmark and Sweden C) Japan and Thailand D) Great Britain and Mexico 83) Hofstede's masculinity versus femininity dimension looked at the relationship between gender and work roles and found that in A) feminine cultures, sex roles were sharply differentiated, and traditional "feminine values" determined cultural ideals. B) feminine cultures, sex roles were less sharply distinguished; however, there was a great deal of differentiation between men and women in the same job. C) masculine cultures, sex roles were less sharply distinguished, and little differentiation was made between men and women in the same job. D) masculine cultures, sex roles were sharply differentiated, and traditional "masculine values" determined cultural ideals. 84) Hofstede's dimension of Confucian work dynamism A) captures attitudes toward time, persistence, ordering by status, protection of face, respect for tradition, and reciprocation of gifts and favors. B) focuses on how a society deals with the fact that people are unequal in physical and intellectual capabilities. C) explores the relationship between the individual and his or her fellows. D) looks at the relationship between gender and the ability to accept ambiguous situations. 85) Which of the following is an example of ethnocentrism? A) A manager in India looks down upon his subordinates because they are from a lower caste, compared to him. B) An upper-middle-class woman talks rudely to a salesperson, because she looks down upon individuals belonging to the working class. C) An American manager criticizes the cultural practices of Saudi Arabia, when he is sent there on business, because it differs from his own cultural norms. D) A French business owner, who plans to expand his market to China, conducts a detailed lt l t d f Chi t t i hi k ti i

86) For international businesses, the connection between culture and competitive advantag is important because A) a weak connection is likely to encourage isolationism. B) a weak connection is likely to encourage competition. C) a strong connection is likely to produce the most viable competitors. D) a strong connection is likely to hamper innovation. 87) What is ethnocentrism? A) a belief in the superiority of one's business or organization over another B) a belief in the superiority of another group or culture over one's own group or culture C) a belief in the superiority of one's own ethnic group or culture D) a belief in the superiority of one's self over another person 88) Class-based conflict between wo...